In 2020, the total estimated value of all NFTs issued on the Ethereum network alone reached $340 million. At the end of the 10th month of this year, this number adds up to 14.5 billion dollars.
You did read that correctly. There are still two months left, and I’m only talking about the value of NFTs made in Ethereum. So who will want to be left out of a move like this? Not many. So, what do you have to know to join? Well, first of all, how to mine an NFT successfully.
In this article, I’ll talk about the most important things to keep in mind if you want to join the world of digital art by mining an NFT.
First of all, what does “minting an NFT” mean?
I’ll start by explaining what we mean by “minting.” Then I’ll take the time to attack that verb. “Mintear” became popular in the ecosystem when the English word “mint” was literally translated into our language, and the syllable “ear” was added to make it a verb. The Spanish language is still trying to come up with a translation that meets the high standards of the cryptos when it comes to language.
What’s an NFT?
This abbreviation stands for the three-word phrase “Not Fungible Token.” If a token is fungible, it means it can be traded for another token with the same value. For example, no one cares “when a BTC was mined” because they all have the same value as long as they are BTC.
When it comes to NFTs, the “N” in the acronym stands for the opposite. These are tokens that are one-of-a-kind and can’t be made again. Because of their nature, they can’t be traded with each other.
Based on this definition, we can also say that its value is completely and totally up to the person who has it. We can’t lose sight of this simple sentence, which will help us understand the past, present, and future of this market.
Around these NFTs, what do we find? Metaverses or parallel worlds, games where you can win money, real assets represented in the blockchain, and an infinite number of other things are all possible. But most of those 14.5 million dollars come from images that can be collected and were made on the blockchain. The subjective value of these images is astronomical.
And how do 14.5 million dollars worth of sales come from these digital images? First, you have to mine them.
What is it to “mint” an NFT?
Most of the time, programmers and artists worked together to make these collections of pictures. The first group is in charge of writing the code for the NFTs to be hosted on the blockchain, and the second group is in charge of making the images.
We, the users, come in at this point. We guess at how much this picture might be worth, gather the cryptos we need, and get ready for the famous “mining” of NFTs.
So, when we mine, what do we do? We interact with a smart contract, in a way. From our wallet, we send the number of tokens that the “minting” function needs. Then, like a good son of a bitch, we pay the gas that goes with it and prays that the transaction goes through.
If the second thing happens, a random algorithm “decides” what our NFT is like. So we wait to see if our own NFT will have mustaches, 3D glasses, or a T-shirt with the logo of the network where we bought it.
From the user’s point of view, to mine an NFT minting website development means to do what is needed to make it, to give it “crypto-life,” and to enjoy it in our wallets while we wait to see if we can get a financial benefit from it.
Now that we know what is the meaning of verb and what will happen if we use it let’s find out what we need to do to do it successfully.
How do you mine an NFT well?
Even though this is not a very hard process, it can be hard for a newbie to understand how it works from start to finish. If you do the steps below, your NFT won’t be completely safe, but everything that depends on the user will be taken care of.
When NFT collections are launched at events that are liked by the community, they tend to make the blockchains where they happen very busy. So, a bit of luck and a good internet connection are great tools to help you finish this adventure.
Let’s get to the guide without further ado.
To mine an NFT, we must first find out when, where, and how the event will happen. This may seem like an obvious thing to say, but I’ll say it anyway.
So, where can you learn the most about mining events? From my point of view, there are three in the following order:
Why is it in order of time? Most of my experiences with NFTs have gone like this: When a new protocol comes out, I find out about it on Twitter, where it is called an “NFT collection.” They usually show a few pictures as a preview, and I can tell right away whether or not I like them.
Soon, they will show off their most important way to talk to each other, which is their Discord channel. Even though this social network is very powerful and well-organized, it is too much for me to handle. So, I only log in when the protocol sends me “missions” or requests, which I find out about on Twitter.
Telegram is the last. Whether it’s the official group for the collection, if there is one, or an unofficial group dedicated to the effect, it’s a good way to find out how people feel about the project and what they’re hoping for.
Now that we know what the project is, we can start mining.
It’s time to dig.
The day of the project’s release has finally come, and it will happen through the well-known “minting” of NFTs. How to get ready?
To have cryptocurrency ready to pay for network gas and mining.
Link the wallet to the site that “hosts” the event or gives it a place to happen.
I try to have as much bandwidth as possible on the internet. In order to do this, I usually disconnect everything from the wifi except my computer.
Follow the project’s instructions and wait for the launch time. Some say to wait until the countdown is over without refreshing the page, while others say to refresh the page.
Once the famous “mint” button is turned on, and here my opinion and experience are all that matter, wait two or three seconds and then click on “mint.”
Now, if luck and the Internet gods are on our side, all we can do is wait for the transaction to be approved.
I already lied, so what’s next?
After the steps in the last section have been finished and the transaction has been approved, it’s time to wait. After a few minutes, you can usually see the images on the page where you minted or in the wallet itself, depending on the network.
Once the NFT becomes a digital image, it’s time to start sharing the experience with trusted groups. Be ready for times of excitement and uncertainty.
Advice about safety
NFTs are tokens, just like fungible tokens, so it’s important to take some security steps to avoid hacks or thefts that are common in the cryptocurrency world.
It’s always best to work on projects you think are safe and, if possible, with teams you already know. We’ve seen projects where, once the “mint” transaction is approved, users lose all of the money they had in their wallets.
Because of this, I have made a new wallet more than once. I only send it the amount of money I need to take part in the “minteo,” as long as it’s money I’m willing to lose.
Before I end this section, I wanted to talk about a privacy issue. We know that using minted NFTs as profile pictures is popular now because we see it every day on different networks. It’s a pretty great way to show off our wealth to the world, but it also makes it easy for bad people to get their hands on our money. Because of this, I’ve only given my NFTs to people I trust.
The time to decide what to do with our NFT has come.
Once we have the NFT, we can start to think about the next steps we need to take. These will depend on our plans, of course. We can choose to loot it if we want to collect it (or if there are rumors that the NFT will be useful in the future), or we can sell it on the market for the best price we can get.
Now we’re getting to the hard part. As I said at the start, the NFT’s price is completely up to the individual. But it doesn’t make sense to put it up for sale at a price no one will pay or a value that doesn’t convince us. So, what are some objective measures we can use to back up our subjective pricing of an NFT?
First, the lowest and highest prices. Keep an eye on the market and compare the lowest and highest prices. Second, wait until rankings or lists of how rare something is come out. With these tools, we’ll be able to find our NFT in the collection and set its price based on its ranking or, at the very least, compare it to other NFTs that have similar features.
Based on these parameters, it will be much easier to figure out how much a digital image is sold for.
A look back
The only way to end this article is to make it clear that nothing you read here is advice on how to buy something. Beyond the numbers we can see in the networks, not all lies are worth their weight in gold.
There are value-added projects that can be worth more over time or make money quickly, but there are also those that will be forgotten after being sabotaged…
Always, the best thing to do in the crypto ecosystem is to do your own research and not listen to people who live off their influence in the networks. People who want to mine an NFT should have personal reasons that come from doing a lot of research. Having a piece of the ecosystem’s history is definitely one of the things I like best about it.