You may have heard many people talking about how much money they make from NFT. How profitable is this space, and how can you make millions by selling on the NFT marketplace. But no one tells you how much net profit they earn from selling their NFT. Almost none of them will tell you about the cost of making their first NFT and listing them on the marketplace. In this article, we will be showing you how much it cost to make your first NFT.
What is minting?
Minting is how you can create your actual digital art or NFT project. You need to have some items you intend to turn in for minting. These items can be books, random images, audio, concert tickets, etc.
After that, you need to have either a MetaMask extension or Coinbase wallet, or any other wallet supported by the platform to connect your Ethereum.
Once minting is done, you are ready to sell your first NFT in the marketplace. There are many ways to sell your NFT in the marketplace. Mainly there are two ways. One of them is listing them at a fixed price, and the other is by auction.
The different costs associated with NFT
To sell an NFT on the marketplace, you must consider a few expenses. These expenses can go up to millions of dollars too. So, be aware of these expenses before selling your first NFT.
1. Gas Fees
The most critical fees you need to consider are the Gas Fees. They are familiar with all cryptocurrency expenses. As Ethereum transactions require computational energy to perform the blockchain, it charges ‘gas fees’ from the user. You need to pay a transaction fee to validate a transaction on the blockchain network. On most NFT platforms, sellers must pay gas fees to ‘mint’ and sell their NFT on their platform.
It varies from marketplace to marketplace. Some allow selling your NFT for free, while some marketplace can charge as high as $700 to mint, just like the Rarible platform charges $700 to mint. However, this varies within the marketplace also. Sometimes, it is high, and sometimes, it is low. Also, you need to pay about $100 on the Ethereum blockchain network to secure the token.
2. Account Set-up Fees
Some platform also charges you to set up your account on their marketplace. When you connect your wallet to your marketplace, they will take some transaction fees there. However, many platforms don’t charge you for setting up your account. It would be best if you looked at it before choosing any marketplace.
3. Sales Fees
Almost all platform takes up sales fees when you have made a sell on their platform. Some marketplaces don’t charge you for minting. Instead, they will charge you when you will make your first sale. This can be done in many ways, but it depends on how they charge you. Some platform takes a percentage of the amount your NFT is sold like OpenSea charges 2.5% of every sale made on their platform. Some platforms that have taken subscription fees or upfront amount at the beginning charge fewer sales fees or no sale fee.
It’s pretty tricky to calculate the actual cost of selling NFT. Because the fees are charged in Ethereum, the price of Ethereum fluctuates every time. Plus, the platform charges are also different. However, in most cases, you can mint your first NFT for less than $300. But we would recommend checking platform prices first before listing any NFT.