The NFT market is booming around the world. As a result, a lot of artists are considering turning their content into an NFT. Whether this is worthwhile will often depend on how much you pay to mint these tokens. So, how much can you expect to pay to create your NFTs?
There are a few expenses to consider. First, you will often be required to pay the gas fees. These will average around $70 on the Ethereum blockchain. You might also be required to pay site fees, like those involved with listing the NFT for sale. These can vary from almost nothing to $900 (extreme situation), depending on the site you are using.
Yet, there is a caveat that the NFT world continues to evolve, and specific platforms will allow you to defer the minting fees to the buyer, or you can always mint an NFT backed by a blockchain that doesn’t have fees.
So, the costs of creating an NFT aren’t onerous, especially when compared to the expenses of buying an existing one. Keep reading to learn more about the costs you can expect to pay when minting your NFTs.
What is Minting?
Let’s start with the basics. If you want to create your own NFT project or NFT art, you will need to get used to the process of minting. In this case, you will need to have some items that you intend to turn into an NFT. This can be digital art, books, Tweets, random images, memes, audio, concert tickets, or video, just to name a few. (Many things can be minted, and that list continues to grow.)
Oh yeah, you’ll also need to have a wallet and the right software; a wallet like Metamask will generally work. Yet if you want to take a look at a few other top crypto wallets on the market, you need to read this:
From there, it will be easy. You will just need to upload the items to your platform of choice, like Rarible or OpenSea. They will be transferred onto the blockchain with the push of a button. (Of course, you will need to pay some fees for the transaction.)
Once the minting process is completed, it can then be listed for sale and sold like any other NFT. There are numerous options on how to sell your NFT, like an auction or fixed price. If you are curious about the differences between minting and flat out buying an NFT, this article will clear it up:
What are the Costs Associated With NFTs?
You will need to consider a few expenses when you are minting an NFT. Here are some of the things you need to consider:
- Gas fees. These are common to all cryptocurrency expenses. It acts as a form of compensation for the people who are providing the computational power to secure the network. This can fluctuate, depending on how many transactions are being performed at the time.
- Account set-up fees. Whether this will apply will often depend on the site.
- Sales fees. Sometimes, you will be able to mint the tokens for free. But if you want to sell them, you will be expected to pay a price.
How Much Will These Expenses Be?
Now that we know what you will need to pay for, we can look at roughly how much this will cost you.
The site fees can vary widely. Some will allow you to post for free. Others will be a significant cost. For example, there have been some examples of sites like Rarible charging people $700 to mint their NFTs, then again this was when gas fees were at their highest.
While these fees are essential, and you should research them carefully, they aren’t the only thing to consider. It’s also important to consider the type of people who use the site. Because of this, it might be worth paying a slightly higher fee if it increases the chance that someone will buy your NFTs.
Often, one of the biggest fees you will need to pay is gas. These will apply to all transactions that are occurring on the blockchain. However, creating an NFT takes up more time than transferring money. Because of this, you will need to pay higher gas fees.
On average, though, you can expect to pay around $70 in gas fees when using the Ethereum blockchain to secure the token. This fee can change frequently, depending on a range of factors. Here are a few tips to reduce the amount you need to pay:
- Wait until it’s the night before processing the NFT. Often, the number of fees you will need to pay will depend on how busy the network is. By staying up late, you should be able to reduce the number of transactions that are occurring.
- Be patient. If you need something urgently, the network will need to prioritize that task. In exchange, you will need to increase the gas fees.
- Avoid the weekend. This is the time that most people will be trying to access the network. Because of the increased demand, gas fees will be higher.
- Create an NFT series. Create one NFT with multiple editions and sell the editions individually.
- Choose the right currency. You will often find a significant difference between the currencies.
If you take these tips, you should be able to get reasonable fees. However, you won’t know how much you will need to pay until it comes time to process the transaction. Plus, the price of cryptocurrency is always fluctuating, making it even harder to predict how much these transactions will cost.
It should be noted that it is still the early days of crypto. As it continues to evolve, these fees will likely become more standardized and less costly.
I wrote a popular article that shows the many nuances and real-life examples of minting costs from NFTs I created. You can check those stats here, How Much Does It Cost to Mint an NFT?
How Are These Fees Structured?
The next thing that you need to consider is how you will be expected to pay these fees. This will often depend on the site. In some cases, you will be required to have the money upfront before you can add an NFT to the blockchain.
Some other sites, though, will take a percentage from the initial sales price. This might be a significant figure. For example, some sites might charge around three percent per sale.
At other times, you will be charged a subscription fee. This is a monthly fee required to keep the NFTs up for sale. This can appear like a small fee, but it can quickly add up if your NFTs aren’t selling.
If you have the option, it’s best to pay upfront. This will make it easier to pay, as you have a clearer idea of how much profit you stand to make from any potential sales. Plus, any additional fees involved in the buying or selling will be relatively low.
Can You Mint an NFT for Free?
If you prefer, there is a way that you can skip these fees and mint your NFT for free. This isn’t available on all sites. In this case, you will need to use a site like Rarible. They allow you to pass on the minting and listing costs to the buyer. This is known as lazy minting.
As time goes on there will be many platforms offering this same option.
What are Royalties?
While we’ve been looking at the costs of minting tokens, there are a few ways to make money by minting NFTs. Obviously, as soon as you sell your NFT you make money but what if you made a royalty every time it sells for the life of the NFT? That’s the magic.
You could add a 10% or 20% or whatever you want % royalty into your NFT contract meaning you get that percentage every time the NFT sells in the future!
Unfortunately, the amount of fees you will need to pay is inconsistent. It will often depend on two factors. The gas fees and the site fees.
In most cases, though, you should be able to list your NFT for less than $300. Though some sites will allow you to list it for free. As long as you take a few steps to keep these fees in check, minting your own NFTs can prove to be a lucrative opportunity.
Now go make some NFTs, and if you want to sell them, you have to read this article How To Get Your NFT Art Noticed: Complete Guide.