It is usually free to create a non-fungible token (NFT) on most platforms. However, there are other aspects to consider as well, such as minting fees and the time that it takes to create the image or media file prior to making it into an NFT, among other considerations. Learn more about how to sell NFTs on OpenSea.
The cost to create an NFT depends on the platform you are using. Some platforms, such as OpenSea, will only charge a minting fee when the NFT is actually bought. This is called ‘lazy minting,’ and prevents the creator from suffering a loss if their NFT fails to sell.
Other platforms will immediately mint the NFT and therefore charge a fee.
NOTE: Minting – In the case of an artwork that had not yet been minted, this means that it is not yet stored in a blockchain ledger, which also means that there is no proof of ownership by the artist. It is only once the NFT is minted that there is proof. This is why some artists might choose to risk paying a minting fee on a platform such as Binance rather than going with a ‘free’ platform like OpenSea.
Additionally, while creating an NFT may be free on many platforms, there can also be a listing fee or listing cancellation fee. Although indirect, such fees can be considered as part of the creation fee.
Costs to Creating an NFT
- Minting fees – This amount will also vary from blockchain to blockchain, and may cost more or less depending on how busy the blockchain currently is. On the Ethereum blockchain, the fee will be charged in GAS. Prior to the Mainnet merge that changed the consensus protocol, the gas fee for creating an NFT could be between $70-$300 USD. This is why some artists chose to use Polygon instead, since that blockchain does not charge a gas fee. It is important to note that the minting fee is charged by the blockchain and not the marketplace, so they are unable to assist with charge-backs.
- Service fees – Platforms usually charge service fees for selling the item. Again, this is only deducted when the item actually sells. This fee will vary from platform to platform and usually costs somewhere between 3-15% of the sales price.
- Listing fees – Some platforms will charge a fee to list your NFT or to change the dates of the listing. Although this is more linked to NFT sales than creation, if your purpose in creating NFTs is to sell them, then this fee, as well as the service fee, can be seen as part of the cost of creation. This fee varies from platform to platform. For example, OpenSea deducts a 2.5% service fee from every sale, while Rarible charges 2.5% of the sale. Nifty Gateway differs by charging 5% for the initial sale and then $0.30 USD for any secondary sales.
How to Create an NFT
The flow of creating an NFT is pretty similar for most platforms:
- Create your item
- Choose your NFT marketplace
- Choose your blockchain
- Connect a crypto wallet
- Go to the ‘Create an NFT’ tab
- Upload your item file
- Confirm your wallet permissions
Most sites do not charge to fulfil these steps. Instead, the item can be listed for sale for free and only once it actually sells will it be minted. The minting cost will usually be deducted from your sales fee, as well as any service charges.
For a more in-depth look at this process, check out ‘How to Make NFTs for Free.’
Where to Create NFTs
There are multiple ways to create NFTs with some being more tedious than others. The easiest and most commonly used methods for an entrepreneur to create an NFT is through established NFT marketplaces and certain cryptocurrency exchange platforms.
Some examples include:
OpenSea is one of the most popular marketplaces for creating and selling NFTs. One of the major reasons for this is how easy it is to create, list and trade NFTS on the platform. The basic steps required are to:
- Create your artwork
- Create an account on OpenSea
- Select the ‘Create’ tab
- Create your NFT
This process is completely free. But although your artwork has been created on OpenSea and is compatible with the selected blockchain, it is not yet an NFT since it has not been minted. It will only be minted on the blockchain during its initial sale. The minting fee will then be deducted from the sale, meaning that it will be deducted from the seller’s income. Since the minting fee will vary depending on the blockchain and current transaction demand on each blockchain, it is difficult to say how much the gas fee will amount to. However, it is not uncommon for it to be somewhere between $70-$300 USD on Ethereum, which is why NFTs are often listed for so much ETH, even though they are by an unknown artist.
We will again look to OpenSea as an example
The above image is taken from OpenSea’s ‘How do I buy fixed-price NFTs‘ page. It shows how the GAS fee is added on to the purchase fee when the buyer attempts to purchase the NFT. If you are from the United States, think of it as something similar to how when you shop in a store, you will see one price listed on the sales tag, but when you go to pay at the cash register, you will see a tax amount added on top of it.
The Ethereum GAS fee is something like the tax charged for the blockchain’s minting service. However, unlike a government tax, this price is not fixed. Instead, it will vary depending on the activity on the blockchain. The greater the activity, the greater the demand and so the higher the GAS fee will be.
Binance is primarily a cryptocurrency exchange platform, but it also offers other cryptocurrency financial service options. One of these is to create and sell NFTs by following these steps:
- Go to the Binance NFT Marketplace and click ‘Create’
- Read and accept the Binance NFT Marketplace Terms and Conditions
- Follow the steps on the minting page
- Once the details are set, you’ll see an estimated minting fee
- Your file will start to upload
As with OpenSea, you will be able to set a royalty fee on resales, for between 1-10%. Unlike OpenSea, you will immediately be charged a minting fee when you create your NFT.
SuperRare is an interesting cryptocurrency marketplace since it seems to attract investors who are willing to spend more on NFTs than buyers typically do on other platforms. NFTs can be created on the platform as follows:
- Link your wallet to SuperRare
- Create an account on SuperRare
- Go to ‘superrare.com/tokenize’
- Upload your artwork and its description
- Click ‘ISSUE TOKEN’
- Agree to SuperRare’s terms and conditions
- Click on ‘BEGIN TOKENIZATION’
- Your work will then crypto art
However, SuperRare also has a higher-than-usual first sale commission fee of 15%, as well as a 15% gallery fee for artists, which is part of what adds to its exclusivity.
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