The craze for NFTs has brought blockchain and cryptocurrencies back to the limelight. Just when people thought the cryptocurrency business would end with the usual story about Bitcoin, Ethereum and others, NFTs revolutionised the narratives.
However, most people talk about just how much money you stand to gain by selling an NFT but they fail to address just how much it costs to create one in the first place. The fees that you have to pay are controlled by several factors.
You would have to pay a minting fee for creating an NFT, then you would also pay a listing fee which covers the payment for listing your work on a website. There is also a commission fee that comes from the platform itself. All of these are what you would have to pay to create an NFT.
Factors That Influence The Cost Of Creating An NFT
Gas has to do with the energy, processing power and electricity it would take to properly process a transaction on the blockchain platform. It fluctuates based on the time of the day in which the transaction is made. This fee poses a risk to you because it can cause you to make no gain on selling your artwork.
There are three types of gas fees: One-time fees, recurring fees and actions that are gas-free. One-time fees are for those that have never sold before, you would need an account initialisation fee. The recurring fees are for those who have to accept an offer, transferring or even cancelling a listed NFT. For gas-free actions such as listing an NFT for auction or as fixed price, it would require you to pay a fee.
Number of tokens
The number of tokens that you decide to include in your collectables determines the amount that your NFT creation would cost. If you are handling only one, your fees would be lower than that of someone who requires multiple. This is why it would cost you about $677 to create a collection of NFTs on Rarible but cost less if you would create a single one.
How Much Does It Cost To Create An NFT?
Rarible charges you 2.5% for every sale as your listing fee. In cases where the seller takes on the fee, it would cost 5% of the final sale price. OpenSea requires 2.5% for every sale that you make, however, their marketplace infrastructure is for free. These major platforms would charge you this percentage depending on the time in which you make the transaction.
However, Mintable functions a little bit differently. On normal items, the listing fee is 2.5% of your total earnings. Gasless items would cost you 5% of the final sale price. For a printable series, it would cost you 10%. The actual amount that it would cost you cannot be easily determined because of the fluctuations from the cryptocurrency platform and even the marketplace itself.
In A Nutshell
NFTs are the bomb in cryptocurrency and the sooner you follow the trend the better for you. With non-fungible tokens, you can get your artwork to a larger audience and even gain more profit. However, you have to ensure that the fees you pay are not more than the profit you get from selling your artwork.