In 2021, billions of dollars were transacted in non-fungible tokens (NFTs), and the hype grew exponentially. Many expect this growth to continue into 2022, as more and more projects and celebrities are beginning to enter the space. However, NFTs can often be confusing and difficult to navigate. Today, Benzinga explains the NFT minting process and how you can mint your own.
What is an NFT Mint?
An NFT mint marks the first time a set of NFTs are available for purchase. For example, if an artist creates an NFT and offers it for sale, the first purchaser “mints” that NFT. For example, an NFT project may mint its NFTs for 1 ETH each. Potential buyers will be directed to the website, where they can purchase the NFT. The NFT will be randomly chosen, and once the payment has been processed, the founders of the project will send the NFT to the buyer’s wallet.
NFTs are held by the owner of the project and sold directly to those who are interested in buying. The collection may have a set price with purchasers issued a random NFT from that collection. This process allows users to get potentially rare NFTs while still providing a fair purchasing system.
How to Mint an NFT
Now that you understand what an NFT mint is, you may be interested in purchasing your own NFT from a mint. Fortunately, the process is fairly easy and only involves five short steps.
- Make an account with a cryptocurrency exchange.
To purchase an NFT, you need cryptocurrency and an account on a crypto trading platform. While there are many trading platforms, a few stand out with low fees, ease of use and security.
Coinbase Global Inc. (NASDAQ: COIN), eToro, Voyager, Gemini and Webull are all great options for those looking to purchase cryptocurrency for minting an NFT. Setting up an account is fairly easy and typically only requires an email, basic personal information and a connection to your bank account to fund your account.
- Buy Ethereum or Solana.
With a verified and funded account on a trading platform, the next step is to purchase either Ethereum (ETH) or Solana (SOL). The currency you purchase will depend on the blockchain on which the project is built. This information can be found on the project’s website or Discord group.
Once you find the blockchain of the project, you can purchase the correct cryptocurrency. Navigate to the token’s page using the search feature and enter in the amount to purchase. Your token can then be found in your portfolio.
- Download Metamask or Phantom Wallet.
It is not enough to have your tokens on a trading platform; you need a wallet to connect your balance to NFT projects. Wallets give users discretion over their funds.
If you are on the Ethereum chain, you can download MetaMask. On Solana, download Phantom Wallet. Once you have an account set up, you will be given a wallet address, a 64-character string that holds the information associated with your wallet on the blockchain.
- Send crypto to your wallet.
With your wallet and wallet address, head back to the trading platform. Go to either ETH or SOL and send it to your wallet using the send feature and your wallet address. It is best to send a small amount first to verify that you have the correct information.
Once you have verified that you can send crypto to your wallet, send the remaining funds. With a funded wallet, you are only one step away from minting an NFT.
- Mint your NFT.
To mint an NFT, find a project that you like and its release date. On release day, use the NFT project’s website to connect your wallet. You can then purchase the NFT directly from the website. You can then find the NFT that you have received in your wallet.
Discord groups are often the best way to receive early access to NFT releases. Another term for early access is a “whitelist” and can have a variety of benefits.
NFT Pro Newsletter
If you are hoping to learn more about NFTs, including upcoming releases and potential winners, make sure to subscribe to Benzinga’s NFT Pro Newsletter to access the research you need to through weekly updates on the NFT space. NFT Pro aggregates the biggest and most promising NFT releases each week and gives you information on how to mint new NFTs.
Cryptocurrency Exchanges for NFTs
As previously mentioned, you'll need a crypto exchange to purchase either Solana or Ethereum, depending on which NFT you're looking to purchase. Check out some exchanges that support these cryptocurrencies below.
- securely through eToro's websiteBest For:Demo Accounts
Don’t invest unless you’re prepare to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins and learn more. Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk.
How to Find The Next Big NFT
Although it’s not a guarantee you’ll buy the next big NFT, you can access a few methods to aid your research. Discord is a great way to communicate with members of the community, learn more about the project and potentially receive benefits.
Twitter is another area to conduct research. The level of engagement (number of followers and likes) can be a good way to get a grasp on the hype of an NFT.
Overall, it is important to research NFTs early on and engage with the community through social media. That way, you are more likely to mint a winning NFT on release day.
Are NFTs a Good Investment?
NFTs are a speculative investment. Most projects have minimal backing for the prices they charge, and value is derived from the demand for the NFTs, which can change at any second. However, if you are willing to research for projects that may provide value to their users, then it could be a good investment.
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