What is NFT and how do you make it

What is NFT and how do you make it

Non-Fungible Toke or NFT is one of the investment assets that is included in the case of cryptocurrencies. The emergence of NFT has made the investment world even more crowded. If you don't know what the term NFT is, take a look at the following explanation!
NFT itself is a digital asset that can be used as proof of ownership of goods that can be purchased with crypto currency. NFT covers various fields such as artwork, video clips, music, games and so on. Then how to buy and sell?

Getting to Know About NFT

NFT became known in 2017 when the NFT game, Crypto Kitties, was launched. There, users can play games based on the Ethereum blockchain. They can adopt, raise and trade pet cats virtually.

Turning to a brief understanding, NFT is a digital asset that can represent a valuable item with an exchange rate that cannot be replaced. The transaction will be recorded in a data on the blockchain. The data will contain information about the creator, price and ownership history of the NFT asset.

In general, NFT investment transactions often use ether or ETH which is a coin made by Ethereum. Then what is the form of NFT?

NFT generally appears in digital formats, such as JPEG, PNG, GIF and others. If you already have NFT assets, you can use them for buying and selling goods wisely and wisely. You can start selling them by printing one of your digital assets as NFT.

Items that can be sold in the form of NFT can be in the form of works of art, games and others. Documents can also be very easy to convert into NFT. Of course, the final selling price of your work will depend on subjective factors such as quality, creativity and reputation.

NFT Is Different From Crypto

Please note that NFT does not have the same value. Each NFT asset has a non-exchangeable digital signature or equivalent to any other NFT. Which means, one NFT clip does not have the same value as another NFT.

Although seen from its essence NFT is an asset that developed from the cryptocurrency family, but it turns out that the purpose, form and method of use are very different from other crypto assets that both use blockchain technology.

Crypto assets such as Bitcoin or physical money even have the same exchange rate and can be traded. Simply put, Rp 100 thousand will always have the same exchange value of Rp 100 thousand even if it is exchanged for Rp 50 thousand in currency.

It is the same with cryptocurrencies that have the same exchange rate. 1 Bitcoin is worth 1 Bitcoin. This same exchange rate makes crypto assets a trusted transaction tool on the blockchain. From this alone, it is clear that the difference between crypto and NFT is clear.

NFT has absolute ownership. Where whoever owns the asset has full rights. NFTs cannot be divided into smaller denominations like other crypto assets. NFT has unique data that works like a fingerprint that is useful to simplify the process of verifying ownership.

How to Create and Sell NFT Assets

After understanding briefly about NFT, the next question was how to trade NFT assets. To trade NFT, you are required to have crypto assets according to the platform or market you are using.

An example is the Crypto Punks and Rarible markets which only accept transactions using dollars and ETH. Here are the details on how:

1. Select and Create NFT Market

The first thing you have to do is of course choose the most appropriate NFT market. There are many NFT marketplaces, some of which specialize in certain types of digital assets. One that offers the largest and most diverse NFT market today is Open Sea.

If you have already determined the NFT market you will use, please link it with a supported cryptocurrency wallet. Please select the "Mint of NFT" option and upload your digital document. The process may be different for each market, but not too much of a difference.

If you're interested in passively monetizing your work over time through royalties, you can set the royalty amount during the printing process.

2. Input NFT to be sold

If you have printed the NFT as described in the previous method, you will be given the option of listing the NFT for sale in the marketplace. Additional information, if you can transfer and sell your NFT in other markets, there may be additional costs.

All you have to do is click the "Sell" button and then follow the other instructions according to your respective market. You can provide detailed information about transactions such as prices, auction deadlines and cryptocurrencies that can be used to pay.

Later, the market will also calculate gas fees which are the fees for the Ethereum blockchain network to record transactions in this process. The market will also list handling fees. The fees vary depending on how busy the blockchain network is at the time.

3. Manage and Promote

When you have completed processing the registration information for the NFT to be sold, your digital assets will be available for purchase in the market. You also need sales promotions to potential customers through your website or through personal social media.

You can make changes to the listing of information about NFT assets. However, of course, changing or deleting the listing may incur additional fees and gas fees that have been paid cannot be refunded.