How to Start with NFT: A Practical Guide to Utilizing Digital Assets

The Era of Digital Ownership - How NFTs Are Changing the Form of Value

In recent years, digital content such as art, music, and in-game items has evolved from mere data into true assets. Supporting this transformation are non-fungible tokens (NFTs). By understanding how to create NFTs, creators can open up new avenues for monetization.

NFTs recorded on blockchain technology represent ownership of unique objects in the digital realm. Due to the characteristics of decentralized ledgers, editing and duplication are not easy, and authenticity is guaranteed, allowing for the certification of the value of various assets, from digital art to virtual pets.

Various Fields Where NFTs Thrive

expansion in the creative industry

In the realm of digital art, an environment has been created where artists can sell directly to fans by tokenizing images, interactive works, and even AI-generated works on the blockchain, without going through traditional galleries.

For video content creators, delivering music videos and film clips as NFTs to audiences around the world is creating a new revenue stream that does not rely on traditional distribution platforms.

The Transformation of the Music Industry and the Gaming Industry

Musicians and sound designers are building relationships that eliminate intermediaries by directly selling their original songs, albums, and even concert tickets as limited editions to fans.

In the gaming industry, trading cards, characters, weapons, armor, skins, and more have been converted into NFTs, and with their scarcity being verifiable, a new ecosystem has emerged where they are traded in the same way as physical collections.

Cost Structure to Know Before Creating an NFT

When learning how to create NFTs, the issue of costs is something you cannot avoid.

Blockchain-related costs are primarily the gas fees paid in the native cryptocurrency of the selected network. They fluctuate based on the network congestion and transaction volume.

Platform fees vary by marketplace and may be charged as a fixed amount or a certain percentage of the sale price. Commissions are also usually incurred when selling NFTs.

Storage costs may apply when using centralized or decentralized storage services for the long-term storage of digital assets.

Understanding these costs in advance and comparing them with the expected revenue is essential for the success of the NFT creation project.

Execution Steps for Creating an NFT

Step 1: Determine the blockchain network

Choosing a blockchain platform to record NFTs is a critically important decision that cannot be reversed. Ethereum is widely adopted, but there are multiple options such as BNB Chain, Cardano, Solana, and EOS.

Let's compare the fee structures, processing speeds, and user base sizes of various blockchains to choose the one that best suits our needs. Once an NFT is recorded on the blockchain, it cannot be changed later.

Step 2: Prepare and Fund Your Digital Wallet

Build a wallet that is compatible with the selected blockchain. Never share your private keys or seed phrases with third parties. Losing these could result in permanent loss of access to your wallet and assets.

To pay the gas fees when creating an NFT, you need to purchase and hold the native cryptocurrency of that blockchain. It can be obtained through an exchange or wallet function.

Step 3: Choosing the Right NFT Marketplace

Currently, there are many platforms available that allow beginners to easily create NFTs. Among them, full-service marketplaces provide comprehensive support from NFT creation to listing and sales. Be sure to check compatibility with the chosen blockchain and wallet.

Step 4: Practical Steps for NFT Creation

1. Wallet Connection: Connect your digital wallet to the selected marketplace and complete the authentication.

2. Exploring the Creation Section: Find the section labeled “Create” or “Generate,” and understand how to upload media files, set NFT attributes, and input detailed information.

3. Preparation of Digital Assets: The tools used vary depending on the creation target. Advanced image editing software is useful for digital art, modeling software for 3D works, and text prompts for AI art generation. Please ensure you have the appropriate formats such as JPG or PNG.

4. Media File Upload: Upload assets to be tokenized, such as images, audio, and videos, to the platform.

5. Input Metadata: Add a name and description to the NFT. By including access rights to exclusive content and bonus rewards, you can enhance its added value. Limiting the number of mints is also an effective strategy to create rarity.

6. Execution of Creation: Verify all necessary information and click the “Create” button. The platform will process the request, and the NFT will be recorded on the blockchain.

Step 5: Listing on the Marketplace

NFTs may not automatically be listed for sale even if they are created. If you wish to sell, you need to list the NFT on the market and set your desired price and selling conditions. By leveraging this stage, more effective promotion and monetization can be achieved.

Considerations for Setting the Fair Price of NFT

NFT pricing has both scientific and artistic aspects. Multiple factors such as rarity, functionality, creator recognition, aesthetic value, storytelling, and community engagement influence its value.

In practice, first evaluate the uniqueness of your own NFT and its functionality within the cryptocurrency ecosystem. Next, conduct market research using the minimum prices of similar NFT collections as a benchmark to determine a competitive starting price.

It is also important to have a flexible attitude toward adjusting prices based on market feedback and community reactions. The strong community culture in the cryptocurrency industry provides an environment that does not hesitate to offer valuable advice.

Risks of Copyright and Content Theft

Copyright law applies even to NFTs. Unauthorized use of others' works can lead to legal liability.

The most important protective measure is to secure the rights to the content used for NFTs. You must either be the creator or have explicit permission from the original author. Plagiarizing someone else's work not only leads to legal penalties but also directly harms the original creator. Handle content with respect and always obtain the necessary permissions in advance.

Conclusion

NFT has fundamentally changed the landscape of digital assets by providing an innovative means to express ownership and prove authenticity for assets such as digital art, music, and videos.

As the barriers to creating NFTs lower, more creators are entering this field and exploring its underlying technologies. To successfully create NFTs, it is essential not only to produce digital assets that the market demands but also to understand the cost structure, learn appropriate valuation methods, and have knowledge of legal risk management. By comprehensively understanding these elements, the true value of an NFT project can finally emerge.