The non-fungible token market has been brimming with hope in the first month of 2023, as trade levels have surged from the lows of 2022. While the crypto market’s rise is a pioneering reason for the increase in sales, one cannot disregard the fact that NFTs have earned increased acceptance after awareness flowed from multiple fronts. If you are ready to create your first NFT to jump headfirst into the Web3 space, make a passive income, or just for the experience, a point that might make you think is the NFT minting cost incurred for its creation. We have you covered in this blog.
Non-fungible Token: A Recap
A non-fungible token (NFT) is a digital token that represents the authenticity and ownership of any item (digital or physical) it supports. Even though they have existed since at least 2014, they first sprung to life in 2017 when CryptoKitties and OpenSea started their ventures. They had a second lease of life (arguably the most powerful push) in 2021 when their market reached previously unimagined levels with the emergence of many use cases. Now in 2023, they are all set to explode with real-life use cases that could fasten their adoption among the global masses and set the tone for the future.
Where Can We Mint NFTs?
Jumping into a simple and the most-asked question among first-timers, it is necessary to know where one can create their NFTs. Non-fungible tokens can be minted in platforms called NFT marketplaces. Although you might’ve heard that marketplaces allow trading of NFTs, most NFTs involved there are minted on the application.
We should keep in mind that while minting NFTs, the metadata (such as descriptions, total supply, transaction history, and ownership history) will be stored on-chain or, in most cases, on decentralized storage systems such as IPFS (InterPlanetary File System). The storage medium plays a vital role in establishing the decentralization of data.
Factors Deciding the NFT Minting Cost
- An important contributor to an NFT’s minting cost is the Gas Fees incurred for the blockchain transaction process. It can differ from network to network and with time. Remember when people said, “they’d won a gas war to have their first NFT?” Now, this is likely to contribute a minor portion of the transaction, as most networks have adopted the energy-efficient Proof-of-Stake (PoS) model.
- As a user, you will also need to pay a one-time Account Fee to create your account on the NFT marketplace. While most marketplaces don’t charge a fee, some platforms thriving on exclusivity do, and if you want to reach a niche audience, consider this cost as well.
- After minting your NFT, you will be needed to pay a Listing Fee that allows you to send the NFT for moderation and, subsequently, list it for sale. This fee is paid to the marketplace platform, and it varies from one to another.
- There are also extra elements such as Data Size, Transaction Speed, Blockchain Traffic, Time of Minting, and the NFT’s Quality that help one to calculate the NFT minting cost. Note that all these elements play a role in deciding the gas fee.
Hence, it is important to be careful about the above elements before starting to create your NFTs.
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Is There a Way to Avoid Costs Outright?
There are ways using which one can mint NFTs free of cost (or at least for low costs). If you have ever heard of Lazy Minting, you know what I mean. Lazy minting is a process where a creator can create NFTs and store them off-chain in a decentralized system. When a buyer approaches with an offer, they can mint the NFTs to keep them on-chain, thereby shifting the gas fees to the buyer.
There are also blockchain networks that incur zero gas charges, such as Polygon and Solana. This is one of the reasons why these networks have seen widespread adoption and popularity in recent times. You can find marketplaces where there are minimal to zero initial costs that reduce your expenditure for minting an NFT.
While trying to avoid costs outright, make sure you don’t get stuck in a place where your niche isn’t popular enough, or worst, an unpopular network. That’s why the wise say, “DYOR before anything!”
Domains Where Minting an NFT can be Beneficial in 2023
Although there are numerous domains existing inside the NFT space, not all of them stay profitable at all times. Here are a few top-grossing and exceptional domains that could make the cut for you this year:
- In-game Assets
- Digital Profile Picture (PFP)
- Video Clips
- Photographic Images
- Music Albums
- Digital/Physical Artworks
- Phygital Collectibles
- Metaverse Avatars
- Fashionwear and Sportswear (Digital/Phygital)
Note there are more types of assets that can be made into an NFT, and more use cases are incoming every day. It is essential to take into account the feasibility in terms of NFT minting costs and the project’s existence in the long run by having a well-set plan in place.
Shedding Final Thoughts
Hence, we have seen how NFT minting costs are determined and how they can be minimized. But don’t let costs discourage you from showing your skills to the world! You can see how brands, celebrities, and startups alike have started getting into the NFT space; they clearly know that NFTs will become an inseparable part of tomorrow’s digital economy. So, why are you waiting yet? Get into action and become an NFT pioneer!
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