How Much Does It Cost to Create an NFT?
Since the NFT Market is booming worldwide, many artists are considering turning their content into an NFT.
Whether this is profitable will usually depend on how much you can expect to pay to create your NFTs.
There are a few costs to consider. Foremost, you will need to pay the gas fees. These will average around $70 on the Ethereum blockchain. You might also pay site fees, like those involved with listing the NFT for sale, which can vary from almost nothing to $900 (drastic situation), depending on the site you are using.
Specific platforms will allow you to postpone the minting fees to the buyer, or you can always mint an NFT supported by a blockchain that doesn’t have costs.
So, the charges of creating an NFT aren’t onerous, especially when compared to the ones of buying an existing one.
What is Minting an NFT?
“Minting” an NFT means publishing your token on the blockchain to make it purchasable. You will need to have some items that you intend to turn into an NFT: digital art, books, Tweets, random images, memes, audio, concert tickets, or video, to name a few.
Oh yeah, you’ll also need to have a wallet and the right software; a wallet like Metamask will generally work.
From there, it will be easy, as you will need to upload the items to your platforms of choice, like Rarible or OpenSea. In this way, your digital artwork will move onto the blockchain with a click. Of course, you will still need to pay some fees for the transaction.
Once completed the minting process, it can then be listed for sale and sold like any other NFT. There are multiple options for selling your NFT, like an auction or fixed price.
So what are the Costs Associated With NFTs?
You will need to consider a few costs when minting an NFT, like:
- Gas fees. These are common to all cryptocurrency expenses. It is a form of reward for the people providing the computational power to secure the network; it can fluctuate, depending on how many transactions perform at the time.
- Account set-up fees. Whether this will apply will often depend on the site.
- Sales fees. Sometimes, you will be able to mint the tokens for free. But if you want to sell them, you will need to pay the price.
Knowing what you will need to pay for allows you to look at roughly how much this will cost you in total.
While these fees are essential, and you should research them carefully, they aren’t the only thing to consider. It’s also important to consider the type of audience of the site. For this, it might be worth paying a slightly higher fee if it grows the chance that someone will buy your NFTs.
Often, one of the most considerable fees you will need to pay is gas, which applies to all transactions on the blockchain. Yet, creating an NFT takes up more time than transferring money. Because of this, you will need to pay higher gas fees.
On average, though, you can expect to pay around $70 in gas fees when using the Ethereum blockchain to secure the token.
This fee can frequently change, depending on a range of factors. Here are a few tips to reduce the amount you need to pay:
- Delay until it’s the night before processing the NFT. Often, the number of fees you will need to pay will depend on how busy the network is. By staying up late, you should be able to reduce the number of transactions occurring.
- Be patient. If you need something urgently, the network will prioritize that task. In exchange, you will need to increase the gas fees.
- Avoid the weekend. Most people will be trying to access the network during this time. Because of the increased demand, gas fees will be higher.
- Create an NFT series. Create one NFT with multiple editions and sell the editions individually.
- Choose the correct currency. You will often find a significant difference between the currencies.
If you take these tips, you should get reasonable fees. However, you won’t know how much you will need to pay until it comes time to process the transaction. Plus, cryptocurrency’s price constantly fluctuates, making it even harder to predict how much these transactions will cost.
How to pay the fees
It would be best to consider how you will pay these fees, knowing that they will often depend on the site. In some cases, you will need to have the money upfront before adding an NFT to the blockchain.
However, some other sites will take a percentage from the initial sales price. For example, some sites might charge around three percent per sale.
At other times, you will pay a subscription fee, which is a monthly fee required to keep the NFTs up for sale, which can quickly add up if your NFTs aren’t selling.
If you have the option, it’s best to pay upfront, as you have a clearer idea of how much profit you stand to make from any potential sales. Plus, any additional fees involved in the buying or selling will be relatively low.
On Rarible, though, you can mint your NFTs for free. Rarible indeed allows you to pass the minting and listing costs to the buyer, a process known as lazy minting.
Other than spending money to create NFTs, focusing on earning is useful to choose the right royalty option. What if you made a royalty every time it sells for the life of the NFT? That’s the magic. You could add a whatever you want % royalty into your NFT contract, meaning you get that percentage every time the NFT sells!
Want to know how to create one?
Or perhaps you first need an overview of the best NFT Marketplaces?
