Oxalus Insights

What Is Minting An NFT? How Does It Work?

Guides Oct 4 2022

There has been more and more interest in NFT minting since the NFT technology’s meteoric rise in popularity in 2021. In the first half of 2022, crypto users paid 963,227 Ether (ETH), worth $2.7 billion, to mint NFTs on the Ethereum network.

Mining NFTs and selling them on the NFT Marketplaces is expected to remain an attractive profitable way for crypto users. However, many people are still confused with questions like how to mint NFTs, whether it is expensive, and whether I should mint NFTs. If you are one of them, then this article will answer all your questions.

What Does Minting An NFT Mean?

Minting NFTs is the process of turning a digital file into a digital asset or crypto collectible stored on the blockchain. The digital asset is permanently saved in a decentralized database or distributed ledger and cannot be edited, modified, or deleted. After the mint, your NFT is ready to circulate in the marketplace.

Currently, the majority of NFTs are minted on the Ethereum network as it has the largest trading volume. However, other blockchain networks like BNB Chain, Avalanche, Solana, etc all support the minting of NFTs.

How To Mint An NFT?

Each NFT minter can choose specific tools that are familiar to him or her but in general, the NFT minting process involves the same basic steps on all networks and NFT platforms.

Check out our step-by-step guide on how to mint an NFT below.

1. Prepare Your File

You can virtually convert any type of digital file into an NFT asset in a few simple steps, whether it is a text file, a video, or a 3D model. The more unique and valuable an asset is, the easier you can sell it in the NFT marketplace. Make sure that your file is of the highest quality possible for the best final product.

2. Buy Crypto

NFT minting requires gas fees. To pay the gas fees, you must hold the blockchain network’s native tokens. For example, if you decide to mint NFTs on the Ethereum blockchain, buy some Ether (ETH). 

The choice of the network may determine the wallet and NFT marketplace that you should use as some are exclusively compatible with others.

3. Transfer Tokens Into A Non-Custodial Wallet

You will need to transfer funds from the exchange to a non-custodial hot wallet to start interacting with the blockchain network’s platforms.

Get a trustworthy non-custodial crypto wallet that allows you to fully control your funds without the interference of any third party. You may consider using a crypto wallet optimized for NFTs for a smooth, user-friendly, and highly secure experience.

4. Connect Wallet To An NFT Marketplace

Next, connect with an NFT Marketplace. OpenSea, Binance NFT, Rarible, NBA Top Shot, and SuperRare are among the top NFT Marketplaces, according to Forbes.

Once you’ve connected your wallet to a marketplace, you may create your username and user profile. Link your marketplace profile to your social networks, portfolio, or blog to add credibility or remain anonymous.

5. Upload Your File

On the marketplace interface, access the “Create an NFT” or “Create new item” page from which you can upload files. The steps should be nice and intuitive, just like when you upload a song to SoundCloud or a video to Youtube.

Keep in mind that after the NFT minting, the NFT is just a representation of the file or content and not the file or content itself.

6. Mint Your NFT

After uploading your digital file, you can name it, give it a description, and designate it as “Mint NFT” or “Is for sale” on the appropriate platform.

7. Approve Gas Fee or Transaction Fee

Every blockchain transaction uses smart contracts and costs gas. Each network’s pricing varies, and you must pay with its native token. Please approve the transaction in your crypto wallet to pay the gas fee!

In addition to the gas fee, the NFT Marketplace may impose a transaction fee. Approve the payment to mint NFTs. On some marketplaces, like OpenSea, the cost isn’t collected at minting but at sale.

8. Wait For Successful Minting

It takes some time to convert your digital file into an NFT and store it on a decentralized database. Patiently wait until the process is done. The newly minted NFT will connect your crypto wallet address and NFT marketplace profile.

>>> Join us on Oxalus Wallet App to receive more NFTs news, helpful hints, and hidden gems.

How Long Does It Take To Mint An NFT?

Skilled crypto users familiar with wallet operations and the NFT Marketplace can mint an NFT in about 30 minutes. However, this period can also last up to several hours if you are a complete newbie.

The most time-consuming phase is probably buying crypto on exchanges and transferring funds to a newly created crypto wallet. The technical maneuvers can be a bit challenging, but once you get used to these manipulations, you will open the door to the crypto world full of opportunities.

The operations on NFT Marketplace will be quite intuitive. These steps are just like creating a Youtube profile and uploading content.

How Much Does It Cost To Mint An NFT?

Gas and transaction fees are included in the cost of minting an NFT. To establish the cost of minting an NFT, we must calculate each fee.

The gas fee to mint NFTs depends on each blockchain network. On Ethereum, known for its costly gas prices, the normal NFT minting fee is $50 to $200, but on BNB Chain it’s 0.03 $BNB/minting. Before minting NFTs, check the network’s gas fee.

Unlike gas fees collected by the network, transaction fees are collected by NFT Marketplace and each NFT Marketplace will have its own fee. Below are transaction fees for some of the most popular NFT Marketplaces.

  • OpenSea: OpenSea takes 2.5% of every final sale price at the time of sale.
  • Rarible: Rarible levies a service fee of 2.5% for each sale, which doubles as a listing fee, on both ends of the transaction. However, the seller can accept the cost of 5% at the final sale price.
  • Nifty Gateway: On each secondary sale, Nifty Gateway charges 5% plus 30 cents.
  • SuperRare: On the first sale, SuperRare tạkes 15% of the sale amount and on secondary sales, the original minter receives 10% of the sale amount as royalty.

Can You Mint NFTs For Free?

No, because minting NFTs requires gas expenses to perform the transaction on the blockchain network. To reduce the cost, consider minting NFTs on cheap networks like Avalanche and BNB Chain, choosing NFT Marketplaces that charge no transaction fee at the time of minting, and minimizing gas fees by accepting a slower transaction speed setup.

However, everything has its price. Despite having the highest gas fee, Ethereum has the largest minting volume. Your newly created NFTs have a better chance of being sold and turning a profit on a large, liquid market. Do your own research and choose the best plan!

The Bottom Line

So should I mint an NFT? You’ve probably wondered this for a time. 

If you seek to use NFTs to further your artistic passion or business, it’s probably worth your time and effort to start minting your NFTs. However, if your goal is to create the next Bored Ape Yacht Club, you had better thoroughly considered the risk. With a very high rate of NFTs minting out of liquidity, you need to re-evaluate your risk appetite, have plans to market NFTs accordingly, and consider the macro factors of the market before deciding to mint NFTs.

Frequently Asked Questions

1. Does minting an NFT mean you own it?

Yes, if you haven’t transferred or sold it to anyone else, and no, if you did.

2. What do you do with NFTs after minting?

Anything you can think of. Normally, people choose to either store them for collection, utilize their use cases, or list them on NFT Marketplace.

3. Is minting NFT profitable?

It depends on whether the market has demand for the NFT. You should think about the liquidity potential of the NFT before the mint.

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