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How does NFT mining work? – A step-by-step guide

 


What are NFTs?

NFTs are non-fungible tokens. These are unique digital objects that are non-fungible, ie non-reproducible. They can therefore not be copied and are therefore unique. NFTs are based on the blockchain and have a unique digital signature. In principle, this makes it impossible to digitally counterfeit an NFT.


Thanks to blockchain technology and the digital signature, the ownership structure for NFTs is clearly clarified. This means that NFTs are extremely popular and can reach high prices due to high demand. The digital art market in particular has been shaped by the rise of NFTs in recent years. But NFT use cases have also exploded in areas like gaming.


What are NFTs based on?

The NFTs are based on the blockchain. The blockchain provides the digital signature for the digital asset and ensures that ownership is clearly clarified. A blockchain on which the NFTs are mostly based is the Ethereum blockchain. Through its smart contracts, it offers the possibility of creating the NFTs on it.


Another blockchain that has gained prominence in the NFT space in recent months is the Solana blockchain . Solana is characterized by a high transaction speed, which leads to high scalability. While most trading platforms offer NFTs based on Ethereum, there are other platforms that focus on Solana NFTs .


How can you make NFTs yourself? – NFT Minting

The process of creating a new NFT is called NFT minting. In principle, NFT Minting can be done by anyone. Most trading platforms for NFTs offer a process for minting. 


Since NFTs are based on the blockchain, the creator of an NFT receives a record on the respective blockchain that uniquely identifies them as the creator of the NFT. This provides extreme security for the artist/creator of their own digital art market. 


Each NFT marketplace uses a different minting method. To simplify the explanation, we would like to depict the creation process on the world's largest NFT exchange, Opensea .



How does NFT Minting work on Opensea?

In the following we would like to describe the process of NFT Minting on Opensea in more detail.


1. Connect your wallet!

To start NFT Minting, you must first connect your wallet to the NFT platform, here Opensea. To do this, go HERE to the Opensea home page and then click on the wallet icon in the top right-hand corner. There you can connect your own wallet. At the same time you can create a profile if you haven't already done so.

When you go to the function to connect your wallet, you select the relevant wallet and you will be redirected to the connection process. The use of Metamask as an Ethereum wallet  is very popular .


Once you have connected your wallet on the platform, you can complete your profile as an artist. Here you can write a profile text, add a link to a website and link social media profiles. You can also specify which cryptocurrencies are accepted as a means of payment.


2. Create your first object!

To create your first NFT object, go to "Create" in the main menu at the top of the header. On the following page you can upload your first object directly. You can also name the object. Optionally, you can add a description and a link. You can also select the blockchain, the number of objects and a collection. At the end, click the "Create" button to complete the process!

3. Make sure your wallet has sufficient funds!

NFT Minting and selling an NFT requires a certain amount of computing power. The transaction costs a certain amount of money, which is referred to as a "gas fee". This transaction fee can fluctuate and should be checked by you as the creator.


To pay for this process, you need a certain amount of credit in your wallet that you can use to pay for the NFT exchange. Opensea gives you the opportunity to transfer Ether from an account of a crypto exchange to your wallet at Opensea directly from the platform.

Another method is to buy Ether Tokens directly through the payment provider MoonPay using your credit card.

4. Put your NFT up for sale!

In the next step you can make your NFT available for sale after NFT Minting. To do this, click on the "Sell" button and you will be taken to the sales page.


On the sales page, you set the details of the sale. Choose either a fixed price or an auction! Then you set your price. It is important to mention that Opensea pays 2.5% in transaction fees. Other platforms have different fees.


The last step is to click on “Complete Listing”. Then the platform calculates the gas fees that the platform queries from your wallet. Once you have paid for this and agree to the terms, the NFT will be listed.

What can you do after NFT Minting?

As a result of your NFT Minting and your listing, you can use various functions of the NFT platforms to increase the likelihood of a successful sale and to establish yourself as an artist on the platform.

For example, you can create a series of NFTs and form an NFT collection from them. This increases the chance that your digital art will be noticed. 

You can also interact with the users of the platform and build trust. This increases your chances that your NFT business will become successful over time.  

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