The science behind NFTs is simple: you create a piece of art, “mint” it (the process of converting the designed artwork into an NFT on a blockchain platform), and then market it. But the first step is often the hardest, and artists/creators often get confused regarding how much does it cost to create an NFT?
The answer is right here:
The overall cost of creating an NFT (minting it on a blockchain) depends on various factors. This includes blockchain charges (account fee, gas fee, listing fee), NFT features (size, quality, format, versions), and also on which day and time are selected for minting an artwork into an NFT. Because these factors constantly vary, it is safe to say that the overall creation cost of an NFT can range anywhere from $1 to $500. Also, the price range is estimated and can increase per the demand, the complexity of NFT artwork, and blockchain fees.
Sounds exciting? Let’s dive deep into the world of NFTs in the guide below and explore more about the costs associated with NFTs and if there is a way to create an NFT at a lesser price!
How Much Does it Cost to Create an NFT?
Creating an NFT seems like a piece of cake since, at first, you have to create artwork. However, The problem comes when you have to convert your art into an NFT using a blockchain platform.
It is because a long list of factors can impact the price of creating an NFT; the more complex the creation, the higher the price will be.
If things seem confusing, remember that each step of creating and marketing an NFT will have different factors contributing to the overall price. The major impact is made by the type of blockchain an NFT creator selects since different platforms have varying chargers.
Costs Associated With Minting NFT
You would need a blockchain platform for “minting” an NFT (converting your art into an NFT). And typically, an NFT creator is charged the following fees on a blockchain platform:
- Account Fees
- Gas Fees
- Listing Fees
Let’s learn in detail about these fees!
Account Fees
Creating an account on a blockchain is free, but a fee is typically charged to initialize your account. It can be anywhere between $70 to $300 and depends primarily on your NFT platform.
Gas Fees
Gas fees are mandatory for every NFT creator/blockchain user to pay. It is the payment charged for the computational energy needed for a transaction to proceed on a blockchain.
To understand better, you can consider the example of credit cards where a certain amount is deducted every time you use your credit card (to pay bills, transfer money, etc.). Similarly, gas fees are charged when an NFT creator wants to execute a transaction on the blockchain.
These fees are then paid to the “miners” – people who work in blockchains to validate a transaction. Different blockchain platforms have varying gas prices, though the charges depend primarily on supply and demand.
It is also important to note that gas fees are paid in the blockchain’s native currency. For instance, the famous blockchain platform Ethereum charges its trading coins in ether (ETH).
Listing Fees
It means listing the NFT for sale. An NFT creator creates an NFT to sell it. Though the two may sound different, the listing fee is often included in the creation fee for an NFT.
It is because some platforms, which, though, do not charge anything for minting your NFT, would include a fee later for listing the NFT.
Costs Associated With NFT Features
Account fees, gas fees, and listing fees are related to the blockchain. An NFT creator must pay these charges to “mint” the NFT.
You should never forget that when we talk about creating an NFT, we are referring to the minting process of converting a piece of art into a non-fungible token (NFT).
However, various other factors add to the overall price of creating an NFT. These factors depend on how complex your piece of art is (to be converted into an NFT on a blockchain platform), such as the size, quality, format, and version of the NFT.
So, let’s go through these factors and explore how they impact the creation cost of an NFT!
Size of the NFT
The first factor contributing to the cost of creating an NFT is the size of the NFT. The larger the size and more complex the design, the higher the price will be.
Quality of the NFT
The quality of an NFT makes a significant impact on its price. As an NFT artist/creator, you can choose whether you want to create a free NFT (using pre-added images and designs) or create and use your own content.
Another thing that matters here is the royalty percentage. You can think of “royalty” as the commission the original artist gets when one of their pieces of art is sold.
Artists often decide and add royalties when creating/minting an NFT. The higher the royalty percentage, the maximum will be the price because no matter how often the NFT is sold or resold, the original creator will always get a percentage in return.
However, you should also note that by adding royalties, you are making the design of your NFT. Thus, it will eventually add to the overall price of creating an NFT.
NFT Format
Other than the size and quality of the NFT, the format also plays a significant role in adding up to the creation cost of NFT. It is entirely dependent on the artist’s creativity and how they want their NFT to be.
The artist can choose any supported NFT format such as jpg, jpeg, gif, mp4, JPG, PNG, GIF, FVG, MP4, WEBM, MP3, WAV, OGG, CLB, GLTF. Furthermore, the NFT file can be in audio, video, or image format.
Some invariant variables in the world of NFT include compatibility with all media. It means that the created NFT should be compatible with all media types, and the digital content should also be compatible with mobile devices.
Lastly, whatever you choose, remember that the format often depends on the type of artwork created. Furthermore, selecting the correct format during minting will both influence the quality of the NFT and the creation cost.
NFT Version
The creator can choose between a single converted NFT or various versions of the same artwork. Subsequently, creating multiple versions of an NFT would cost more than converting a single artwork into an NFT.
Costs Associated With Minting Time & Day
The platform (NFT marketplace) you select to mint your NFT is important. Yet the cost of minting NFT also goes in direct link with which day and time of the day an artist chooses for converting artwork into an NFT.
It is essential to carefully select the right day and time for minting since this factor is often ignored by newbies or wannabes NFT artists, though it significantly impacts the creation cost of an NFT.
The cost of NFT minting is higher during weekdays as compared to weekends. It is because the on-chain activity is increased during the working days. Subsequently, it also means minting an NFT on weekends can cost you less than the minting charges on weekdays.
Furthermore, keeping an eye on when the on-chain activity is expected to be increased or decreased on various blockchain platforms can give you a fair idea of when you can create your NFT at a lower cost.
So, How Much Does It Cost To Create An NFT?
Up till now, it would have been clear that the creation cost of an NFT is impacted by various factors, whether related to the NFT features, blockchain charges, or when the NFT is minted. These factors are always responsible for making the NFT creation cost rise and fall.
Thus, it is far safe to say that on an approximate level, an NFT minting can range anywhere between $1 to $500. This price range can also go even higher depending on the demand, complexity of NFT artwork, and blockchain fees.
Ethereum is one of the many expensive blockchain platforms. And though it’s worth every penny, it may not be the best place to start for many newbie NFT artists.
And since the price for minting an NFT can be extremely expensive, NFT artists can consider various options to decrease the initial minting price. This includes looking for NFT marketplaces that support
- lazy minting (OpenSea, Rarible, Nifty Gateway)
- Gasless minting (Mintable)
- Layer 2 scaling (Polygon, Immutable X, and Polkadot)
The Bottom Line
NFTs are artworks converted into Non-fungible tokens at various blockchain platforms. The process is called minting and depends heavily on various factors contributing to the creation cost of an NFT.
The price of creating an NFT can be higher or lower depending on the blockchain’s account fees, gas fees, and listing fees. The price increases based on supply and demand too.
The complexity of NFT is also a leading factor in its minting cost. This can include NFT’s size, quality, format, and single or various versions.
Lastly, the day and the time when the artwork will be converted into an NFT also matter. On-chain activity days may cost higher than off-chain activity days (weekends may be cheaper).
The post How Much Does It Cost to Create an NFT? (For Beginner) appeared first on CFAJournal.
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