What does floor mean nft

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You’ve probably heard of non-fungible tokens, or NFTs — and you may have heard that some of them are selling for big bucks. Still, NFTs are somewhat of a mystery to many people, whether they want to invest in them or not. Even for NFT investors, the process of creating an NFT, which is called “NFT minting,” is something of a mystery.

But we’ll clear it all up below. We’ll explain what an NFT is, discuss how to create an NFT, and more.

NFT Basics

NFT, or non-fungible tokens, are unique digital assets that can be traded, bought, and sold. They usually take the form of some type of artwork, or even in-game assets for certain virtual worlds. Each NFT is its own metadata codes, which are stored on the blockchain, to ensure that they remain unique.

NFTs are sort of like digital trading cards, except each is one of a kind. Unlike other digital assets, like Bitcoin, for example, there’s only one of them, with no copies. In that sense, it preserves the rarity of the digital asset at hand.

How Does NFT Minting Work?

The process is essentially boiled down to deciding where and how you want to do it, hooking some tools (your digital wallet and a blockchain network) together, and then hitting the “mint” button.

Whether you want to preserve an asset of your own creation — like a work of art — or create NFTs to sell or trade, learning NFT minting can be easy with the right tools. One other thing you’ll need: some background in the crypto space or general knowledge of blockchain technology.

What Are the Benefits of Minting an NFT?

While each potential NFT minter will have their own reasons, there are generally a few benefits to creating an NFT:

Democratize ownership: Creating an NFT allows numerous parties to own a stake in the digital asset.

Sell unique digital assets: Not only can you trade, buy, or sell stakes in assets, it’s possible that in the future artists might even receive a cut of the sales.

Store and preserve value: You can store the asset’s value in a tangible way — similar to how a physical coin can be minted with a specific precious metal concentration. Plus, preserving value digitally is generally considered safe, thanks to the security of the blockchain and the built-in scarcity of NFTs.

How to Mint NFTs

While aspiring NFT minters have some decisions to make regarding which specific tools to use, the basic steps of creating NTF are largely the same.

1. Create a Unique Asset

The first step in minting NFTs involves deciding what type of unique asset you want to create. There’s an entire world of digital assets out there, ranging from in-game weapons to digital trading cards.

As an example, say you want to create an NFT that is a piece of digital artwork. You will need to turn your digital art into data that lives on a blockchain. The Ethereum blockchain is a popular choice for NFTs, but there are others, like Binance Smart Chain, Polkadot, and Flow by Dapper Labs, to name a few.

2. Buy Tokens

You’ll need to buy crypto that is used on the blockchain you’ve chosen. In fact, the blockchain will influence the wallet services and marketplace that you choose as well, since some only work with certain others.

In our example, you would buy some Ether (ETH), which is Ethereum’s native cryptocurrency, to pay for transactions on Ethereum. The easiest way to do that is to hit up a crypto exchange.

3. Deposit Crypto Into a Non-Custodial Wallet

You’ll need a hot wallet, connected to the internet, in which to store your funds. A crypto wallet is an application that lets users interact and connect with the crypto network and their account.

For NFT minting, it’s important to get a non-custodial wallet so that you have full control over your funds — with no third-party involvement. You own the private keys to your wallet. Conversely, a custodial wallet is one that may be assigned to you by a crypto exchange. They’re more convenient, but you don’t have control of your private keys.

4. Choose and Add Assets to an NFT Marketplace

Next, you’ll need to choose an NFT marketplace; there are many to choose from. OpenSea , Mintable , and Rarible are all marketplaces suitable for NFT minters.

Some marketplaces charge users minting fees, and there may also be costs associated with firing up your account (for example, Ethereum gas costs), listing an NFT, and transacting on the platform.

5. Add Your Assets to the NFT Collection

While each marketplace has specific instructions for creating an NFT from your account, the gist is the same: Choose the piece of artwork you want to mint, fill in some details (collection name, a description, etc.), and execute the minting process by adding the asset to your collection.

With your NFTs in your collection, you can get started listing, marketing, and selling them.

The Takeaway

The process for minting NFTs may vary slightly from platform to platform, but the basics are the same: you need a unique digital asset, tokens, a non-custodial hot wallet, and an NFT marketplace.

Buying, selling, and trading NFTs is just one use of blockchain technology and cryptocurrency. Another way to get involved is to trade crypto with SoFi Invest®. Investors can trade more than two dozen cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, Solana, Bitcoin, Litecoin, Cardano, and Enjin Coin.

Find out how to get started with SoFi Invest.

Photo credit: iStock/photoman

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