What is an NFT?
A non-fungible token is a unit of data stored on a digital ledger, called a blockchain, that certifies a digital asset to be unique and therefore not interchangeable. NFTs can be used to represent items such as photos, videos, audio, and other types of digital files.
The items called NFT are sold, traded, purchased as collectibles with bitcoin.
- Currently most being used to sell unique Art, Photos, Music, and Video clips.
- First, In many cases you need a Bitcoin Account to just be able to join a Auction house to buy or sell an NFT.
- Second, you need to tie that account to an auction house that sales NFT.
- Thirdly, your account must have in many cases the bitcoin of choice ETH (Ethereum) in hand to use for cash.
- Fourth, due to fluctuation in price of ETH purchase can grow in value very quickly or drop in value over night!
- What is minting the NFT? That is the process of the NFT being adding to the block chain. After the item is minted, then it becomes an NFT at which you can sell it.
- What is Gas Fee? The cost currently in ETH of the process of minting the NFT.
- Gas Fee? The cost to create an NFT Tokens is a percentage cost from the NFT Market place for creating the Collection (virtual store) which is usually a one time fee. Then on each NFT Minted the final costs depends upon the Ethereum gas fee and NFT Marketplace commission fee total for that item.
- Gas Fee is the amount of Ethereum (ETH) required to perform a certain function on the blockchain, in this case add your NFT to the block chain. The cost of the gas fee will vary it is depending on network congestion and current value of ETH. The best time to mint an NFT is when the congestion is low and the cost of ETH is low. Currently that is usually late at night. Best to look at a MarketCAP to see real time value of ETH before starting the process. CoinGecko is a good source because they also show you the ETH Gas costs. The Gwei conversion plus the commission fee of the NFT Marketplace gives you the total cost for minting an NFT.
- But the higher the cost of Gas, the more you will be charge during the minting process. Before you begin to mint your NFT – confirm the cost of ETH, current Gas Price, and how much ETH you have in your ETH wallet. If you do not have enough in your wallet. Then you will have to cancel the minting until you purchase or transfer more ETH to your ETH wallet tied to your NFT Marketplace.
- Example: Using Rarible.com to mint an NFT on 05/05/2021 at 3:00PM ETH is $3,437.81 and ETH Gas: 69 gwei – charged by Rarible.com Commission Fee Amount + Gas Fee 0.01099 ETH. This would cost you around $37.76 to mint one NFT.
- Website the provides live costs for minting.
- Live Gas Costs – Rarible Analytics