First, some terminology for those who are far from the world of cryptocurrencies.
NFT (Non-Fungible Token) is a special type of cryptocurrency token that is a unique digital asset that is not fungible. Cryptocurrencies like Bitcoin and most utility tokens are inherently fungible. That is, BTC, ethereum is not NFT. NFTs can be images, gifs, photos, text and audio files. These are unique tokens that cannot be divided into parts, like, for example, BTC.
Ethereum is the blockchain and ETH is the currency used to make transactions on the Ethereum blockchain.
Gas Fee — Ethereum blockchain transaction costs. OpenSea does not have a say in setting gas charges — it is determined by supply / demand on the network (blockchain).
A crypto wallet is an application or hardware device that can store digital data as well.
Wallet address is the address people will use when sending cryptocurrency or NFT to your crypto wallet. Your wallet address is unique.
Seed phrase is a list of words that can be used to restore your wallet if you forget your password or lose access to it. When you start trading, find your seed phrase and make a new copy somewhere safe. Do not store seed phrase in the online cloud storage and never share it with anyone.
Collection is a collection of nfts, such as a store or a gallery of pictures.
Bid — the bid price, the highest price at which someone wants to buy a currency / token / share; purchase request.
Smart contract is a computer algorithm designed to generate, control and provide information about the ownership of something. Trading on the NFT market is based on a smart contract system on the Ethereum blockchain.
I will not say for a long time that there has been a real boom in the NFT market lately. The numbers speak for themselves. Here are just a few examples.
According to the website nonfungible.com, the market capitalization of the NFT industry at the end of 2020 is $ 338 million. Although at the beginning of October 2020, the capitalization of the NFT market reached only $ 500,000. You can enter this market with somewhere around $180–200.
Why invest in creating NFTs?
The first hype in the history of NFT is CryptoKitties. A breakthrough novelty is the possibility of “breeding” cats: you take two NFT-cats and produce from them NFT-offspring of various rarities, which you keep or sell.
In early September 2018, a two week old cat named Dragon was purchased for 600 ETH.
In January 2018, the game CryptoCelebrities appeared and at its peak, NFT with a photo of Donald Trump was sold for a record $ 137,000 in ETH.
In January 2017, the HOMERPEPE meme tokenized on Counterparty was bought for $ 500. In January 2018, at the first live auction, Rare Pepes NFT was bought for $ 38,500 in PepeCash tokens.
Ethereum blockchain NFTs trace their ancestry back to the pixelated portraits of CryptoPunks, a project of the LarvaLabs team. There are only 10,000 #cryptopunks, initially they were distributed free of charge, but now they are already valuable #blockchain antiques. In May 2020, crypto-punk # 6487 was bought for 100 ETH, the average daily selling price of crypto-punks in mid-October 2020 increased to 7 ETH.
In January 2021, NFT Hashmask # 1 was sold for ~ 100 ETH on #OpenSea ($ 130,000). On February 4, 2021, the NFT token was sold for $ 600,000.
Beeple’s NFT “Everydays: The First 5000 days” was recently sold for a record $ 69 million and CryptoPunk # 7804 was sold for $ 7.5 million.
Where to begin?
In this article, I will share my personal experience of registering and creating an NFT on OpenSea. There are many similar platforms (for example, Rarible, Dego), but I settled on OpenSea.
1. Creating a wallet.
To get started, you will need a crypto wallet. If you don’t have it yet, I recommend Metamask or TrustWallet. Google Chrome browser is recommended to install MetaMask extension. More details on installing the wallet can be found here: https://metamask.io/faqs.html.
Life hack number 1
I recommend installing TrustWallet on your phone. This is a fairly secure wallet and belongs to the Binance Smart Chain. It seems to me that it is more convenient to manage collections from it (edit, add, add for sale, etc.). But this is based on personal experience; some may find it more convenient to do all this from a computer. It seemed to me that the site works faster from the phone if you go through the TrustWallet wallet.
Save your wallet password and seed phrase.
2. Connecting a wallet.
If you have already installed the wallet, then now you will need to connect it to your OpenSea account.
· Go to the site;
· Click “login” in the upper right corner;
further or connect the Metamask extension, another wallet or TrustWallet to the site, following the instructions. This step is free and you don’t need to pay any fees.
Connecting to the site through TrustWallet can be done using the WalletConnect function.
· Open TrustWallet on your phone;
· Go to “Settings” in the lower right corner (here I have pictures in Italian, you will have them in English or in other language you prefer);
click “WalletConnect” and follow the instructions.
That’s it, your wallet is connected and you’ve created an account on OpenSea.
When creating an account, I recommend that you specify a valid e-mail — there will be messages from the site about your sales or bids.
3. Buying Ethereum.
If you already have this cryptocurrency, just transfer it to the wallet that is tied to OpenSea. If not, I recommend buying ETH on Binance * — the # 1 cryptocurrency exchange. Buy better ETH, which is equivalent to about $ 200. First, you will need to pay a withdrawal fee from the exchange. Secondly, you will need to pay 50–80 dollars when publishing the first nft. This figure depends on the price of the ETH at the moment, the time of day and the congestion of the ethereum blockchain. Some recommend paying at around 5–6 a.m. to save money. For example, I published my first NFT at about 12 a.m. (1:00 a.m. Kiev time) and paid 74 dollars. Thirdly, you need to pay about 60–80 dollars at the time of the direct sale of the first NFT (more on this at the end). In addition, if you want to put NFT on the auction (the price is determined by the buyer, this option is not required), and not just set a price — opensea sometimes also take a small commission for this (about $ 10).
* Using this link you will have 10% discount on commissions for life!
4. Transfer of ETH to the wallet.
After purchasing ETH, it must be transferred to your wallet. I recommend transferring at least $ 180, and preferably $ 200 at once, in case the network fees grow.
5. Creation of a collection.
I access the site mostly from a mobile wallet (Trustwallet). To do this, on the main page, you need to click “Asset” in the upper right corner of the TrustWallet. You can do this in the beginning from a computer, directly on the OpenSea website.
I select a collection and any nft by simply clicking on the icon.
Then I click “Open on OpenSea” in the upper right corner, as shown in the screenshot below.
My NFT on the site opens in this form (created earlier, already with a price):
Next, in the upper left corner, I click on the down arrow, a window pops up. Click “Account”> ”My collections”> “Create”.
Next, you need to click “My Collections”.
A page with all collections will open. Here you can create collections (“Create new collection”), edit (“Edit”), add new files to already created collections (“Add new item”).
Life hack number 2.
To create a collection and send it for verification, ALWAYS add a banner to your collection by clicking on the pencil in the upper right corner on the “My Collections” page, as you can see in the picture below.
Creating a collection (“Create new collection”). Add a logo — Logo image (recommended size 300x300 px). Featured image can be skipped.
Enter the name of the collection (“Name”), fill in the description (“Description”).
Adding links to your social networks and website.
Life hack number 3. Adding a link to your site, as well as a link to your Twitter profile, can speed up approval of your collections.
Fill in the commission field (“Percentage fee”), enter the address of your wallet (“Your payout wallet address”), where payments from sales will be credited, if you wish, add other tokens for payment. By default, there are ETH, WETH, DAI, USDC.
When creating a collection, I recommend choosing its category (cards, lots, art, domain names, etc.). This will make it easier for other participants to find your nft on the site.
After filling in all these data, at the end you need to click “Submit changes”.
“Percentage fee” is the commission on the secondary market (max 10% seems to be). That is, if someone buys your nft and resells it, you will receive a commission for this, which you indicate when creating a collection. OpenSea takes an additional 2.5% from each of your sales.
6. Creation of the first NFT. Click in the collection “Add new item”. You can see the list of accepted file formats in the picture below. Max files no more than 100 MB.
Add the name of your nft (required), a link to it (I am adding a link to the entire collection here), a description and, if desired, additional data and functions of the token. You can also add unlockable content that only the token owner can view. Examples of unlockable content include higher resolution files, physical item ransom contact information, access keys, and more.
At the very bottom, when everything is ready, click “Create”.
So you’ve created your first NFT. However, it has not yet gone on sale and other members cannot find it. At the next stage, after creating your first nft, payment for using the network will take place. You need to click on your file. When it opens, click “Sell”. Until you list at least 1 NFT for sale, you will not be able to send the collection for verification.
Now you need to fill in the required fields to sell a specific token. I recommend choosing a fixed price — Set price. The second option will cost about $ 10 extra. In the “Amount” field, select the price in ethereum.
Next, I recommend activating the “Ending price “— the final price after the listing expires (as a rule, it is lower than the first price). This will reduce the price of nft at any time, otherwise you will have to pay an additional commission.
In the “Expiration date” field, choose how many days the listing will last. The pros say to set it for 3 days, and update it every 3 days. The last step is to click “Post Your Listing”, if you made sure that everything was filled out correctly.
A similar window will appear, only indicating the amount to be paid (I wrote about this above, you need $ 50–80 at this stage). You just need to click “Ok” and “sign” the transaction. If there are enough funds on the wallet, then you can list your first NFT.
However, this is not all. Although you have created a collection and placed the first object for sale, market participants do not yet see your files and can only access them by link.
7. Verification of the collection.
This is the process by which the platform staff validates the uniqueness of your collection. Naturally, you cannot add someone else’s copyrighted files or any pictures from the Internet for sale, let alone someone else’s NFTs. To send a collection for verification, open it, click “edit”. If you did everything correctly, then the lever at the very bottom will become active, and you can send the collection for review. Otherwise, errors that need to be corrected will be indicated above it. Unfortunately, there is no picture to show what it looks like — all my collections have already been verified. Until the collection is approved, there will be a red triangle next to your collections and NFT. Once approved, it will disappear.
Life hack number 4. To speed up collection verification, you need to tweet in your account with a link to your collection and tag OpenSea. It might look like this:
It is also a good idea to add a link to your collection or your profile in your Twitter biography.
Examples of my collections:
Life hack number 5. To speed up the verification of a collection, you can try to write to the Opensea discord by dropping the collection link there and asking to verify it.
Selling your first NFT
If a buyer places an order to buy your token, then such a transaction must be signed if you agree with its price. You need to pay a commission for this. So, I decided to sell my first token when a bid appears. I’ve signed 2 transactions: one for $ 12, the other for $ 78.
Such a large transaction (the second) is made only once (the buyer’s bid was not in ethereum, but in WETH). The following message appeared before the signature of the 2nd, larger transaction:
The offer was not very attractive, but I decided to give it a try. Confirmation of the smart contract execution came from the wallet:
The following message appeared on Opensea:
And after 7 minutes I received a message about the sale of the first NFT!
Later I’ve sold 1 more NFT, this time for ether. You didn’t have to pay any commissions and you didn’t even need to sign transactions. The funds just went to the wallet, minus 2.5% in favor of Opensea.
More information on the Opensea marketplace can be found here.
If the article was useful, you can thank in cryptocurrency:
1C9LY8ycMQFqfFz8xQFvTWv356Z6PK1SMX — for ВТС (ВТС network)
0x0ae8b9252a3b3d085f386913114d5860b603ac8e — for ЕТН (BEP20 network).
If you have questions — don’t hesitate to ask me in Instagram.
#nfts #whatisNFT #howtocreatenft #openseamarketplace #opensea #howtomakenft