NFTs are becoming so popular and everyone is paying keen attention to them. Everyone wants to give it a try, but how much does it cost to create an NFT? Some people see it as a way to end capitalism and for artists, it is one way of getting more potential buyers without incurring more costs. When an artist hears about NFT all that comes to his or her mind is what it costs to create such NFTs. We have come up with a whole list that will guide you throughout.
How Much Does It Cost to Create An NFT
Average costs of creating and transferring NFT
Ethereum is the most popular blockchain host for NFTs. The cost of creating NFT can be a bit expensive and Etheruem patches are trying to solve this problem. An analyst came up with some findings that the average cost of creating an NFT is roughly $70 meaning that the token price can be $100. The high prices arise from the fact that some hidden costs are also factored in. This includes the cost of being on the online sales platform which costs about 15% of your initial sale and 10% of your secondary sales. Additionally, we have the gas price which will greatly depend on the current rate of gas and also the required gas for the transaction. So how do we exactly calculate the gas price?
Ethereum gas price
This is the amount that you need to pay for any transactions that occur on the Ethereum blockchain. Ideally, it is usually transferred directly to those miners that provide computing power for verifying transactions. This signifies that you should always have some extra ETH in your wallet to accommodate for gas in creating NFTs and listing any auctions. Most artists fear huge gas prices will opt to wait for a reduction in prices to create NFTs.
Why do gas prices vary?
Any amount of gas needed during a transaction usually remains constant with time. Whenever the Ethereum network is highly congested and there is a high demand for NFT transactions, the prices will go up. This comes in due to the fact there is a certain mountain of transaction gas that needs to be used with every Ethereum block. Any restrictions of supply will cause fluctuations in prices in most circumstances.
NFT transaction is different from any other kind of normal transaction and therefore you will need more gas to process your transactions. You can reduce these transaction costs by changing the amount that you can pay. This makes it easier for your transaction to be picked up by the miner when it is more profitable to process.
You can as well wait for the gas prices to go down. Checking gas prices over some days will help you to determine whether your transaction will be picked shortly. This is the best and cost-effective method whenever you do not have time-sensitive transactions. Therefore, this is the basic cost that you can always incur whenever you are creating NFT.
The costs involved in running the market are different from those of creating NFT. However, they are greatly dependent on one another. For you to have the art created, you will need to calculate how much it costs per NFT. This will then be added to the profit margin. You are required to pay these costs even if you do not make any sales.
A marketplace will charge some monthly fee to allow you to sell over the platform rather than charging you per piece. Different marketplaces have different prices and if you are a regular seller you can easily upgrade your account.
At WWE, they can mint NFTs for all its wrestlers and they will sell them. This would be a great deal for the company itself.
You can as well open an OpenSea account where you will have unlimited editions for NFTs approximated at $100 to $150. This cost is more reasonable to many people. With time, these prices can fluctuate.
If you usually make some sales on YouTube, Tiktok, Twitter, and other social media platforms then you can try and sell them NFTs. As you do these sales you should look for a place to create your NFTs using a lower amount of money, therefore, incurring lower selling fees. It happens in this manner because you already have a ready market to make your sales. You can therefore focus on both creating and collecting NFTs. Hope this article clear up the idea on how much does it cost to create an NFT.
Also, if you are interested in NFTs, you can learn more about NFTs here.