NFTs (non-fungible tokens) continue to attract more artists and developers to the idea of legitimized, authentic ownership of digital artwork and assets.
However, it’s understandable that many interested in minting their digital artwork as an NFT may not yet have much experience in cryptocurrency or the costs associated with selling art on the blockchain.
While it may seem overwhelming or complicated, navigating the NFT marketplace is not much more complex than navigating any other conventional market. Still, many people are confused about the costs associated with minting an NFT, which can often vary from platform to platform.
But fret not. We’re here to help you navigate all the nuances of NFT finance.
Opening A Cryptocurrency Wallet
Before getting into the NFT marketplace, you’ll need to download a crypto-wallet to connect to your account. Luckily, this step is usually completely free.
The following wallets have no required subscription fees or download costs and allow you to store crypto for free:
- Coinbase Wallet
- Zen Go
- Trust Wallet
Some platforms may have transaction fees for credit cards or bank transfers when purchasing cryptocurrency. Also, it is pretty standard for crypto-wallets to charge a small percentage withdrawal fee.
While there are some ways to navigate around paying these fees too steeply, you should expect to have to give a small cut of the money you exchange through crypto-wallets and NFT marketplaces alike.
Gas fees are the most common costs associated with crypto-wallets and NFT marketplaces.
Maintaining and authenticating thousands of transactions simultaneously on the blockchain is no small task. It requires massive computing and electronic power to do this. This is why most of the popular NFT and crypto platforms depend on only a few blockchains with the most power available, such as the Ethereum blockchain.
Keeping the Lights On
These blockchains need to charge fees for the costs associated with compensating blockchain miners for maintaining and verifying transactions. These are gas fees because they contribute to ‘powering’ transactions.
This gas fee can vary quite a bit depending on your platform, the type of transaction you’re making, and market performance.
Day by day, even hour to hour, depending on traffic, the average gas price for Ethereum transactions can rise or even fall by triple. So expect to deal with a fair measure of volatility regarding gas fees.
And if you’re working with a platform on the Ethereum blockchain, you’ll have to buy at least a little bit of its native cryptocurrency ETH to pay these fees.
NFT Minting: Fees To Expect
NFTs are non-fungible, meaning they can’t be exchanged like conventional or cryptocurrencies. Still, they are verified as tokens on the blockchain, much like cryptocurrencies, and must be minted.
However, when we talk about minting an NFT, we’re just describing the process of making that NFT purchasable and verifiable on an NFT marketplace through the blockchain.
Minting an NFT can be quite taxing on the blockchain, depending on how many assets are being verified. The fees associated with minting can vary from platform to platform.
Free To Look
Many popular NFT Marketplaces, such as Opensea, SuperRare, Foundation, or Rarible, do not charge subscription fees for creating an account.
However, when it comes to transactions, expect to have to connect your crypto-wallet and exchange their blockchain’s native cryptocurrency.
While it’s usually free to browse, some NFT marketplaces like Opensea or Rarible will charge between 2% and 3% for the cost of purchasing or listing an NFT. Other platforms can charge upwards of 15%.
Additionally, some platforms have introduced features that allow users to trade paying gas fees for slower speeds and less computing power in an effort toward environmental sustainability.
Volatility in Minting Costs
The price to mint an NFT can differ wildly depending on the blockchain and the time of minting. Indeed, this price is subject to change from minute to minute.
Some blockchains can cost less than a dollar to mint an NFT on, but they may not have a broad user base – and most NFT artists want to choose a marketplace that many users browse.
This means that the more prominent and popular blockchains, such as the Ethereum blockchain, with more computing power available, can expect to attract more NFT traffic consistently, should their fees stay reasonable.
However, the trick is that as traffic increases on the blockchain, fees begin to skyrocket. The more busy the blockchain is, the more its power is being drained, and the compensation price for using the blockchain will soar.
It’s essential to keep track of gas prices on your or your marketplace’s blockchain of choice before trying to mint or buy an NFT.
NFT Gaming: A Loophole
While fees can always be somewhat expected when dealing with a blockchain, whether in NFT marketplaces or even when dealing with cryptocurrency, there are some creative ways to avoid hefty minting costs and other fees.
If you’re interested in NFTs as an entrepreneur and you’re not necessarily trying to mint your artwork as an NFT, you may find some opportunities in gaming.
NFT games are video games that allow the player to farm, scavenge or craft for rewards in the form of NFTs. Many of these games are free-to-play or offer free-to-earn options.
Just for spending time playing, gamers can earn real monetary value from NFTs and then trade or sell those NFTs in the game’s marketplace.
Additionally, many of these games allow the purchase of digital land or real estate, which can then be rented out to players for cryptocurrency or developed and sold as an NFT.
Depending on the game, some will charge the player little to no gas fees, as the NFT is issued as a kind of “reward” for in-game effort.
Fashion League: Free and Fun To Earn
Fashion League is an NFT RPG taking on the gaming world as one of the first female-centered NFT mobile games on the blockchain.
Like other NFT games, Fashion League is free-to-play but offers options where players can invest in a storefront or plot of land. By building and developing their store, a player can attract the attention of digital buyers and even fashion companies looking for new ideas.
Players can interact with other players, collaborate on ideas, and hear critiques on their storefront and the fashion they design.
Additionally, they can purchase and exchange avatars and cosmetic items as NFTs.
Virtual In-Game Player Economies
Fashion League allows players to compete for rewards by designing their clothes and creating their brand to stand out, and helps them have their fashion designs minted as NFTs.
As players exchange their favorite brands and ideas, they can watch their most loved designers grow and expand their businesses in real time.
Fashion League is pushing the frontiers of digital fashion by offering a virtual space like the Metaverse, where digital style can be displayed, talked about, and browsed by users worldwide, allowing virtual fashion empires to spring up and prosper.
Players can also trade in-game cash for crypto in the form of Fashion League’s DSIGN token or NFTs by competing in weekly conversion events or winning design contests and fashion events.
Or, as a Land Owner, a player can make a passive income from tenants paying rent on their plot of digital land.
Gameplay in Fashion League
What players will find appealing about Fashion League is its Fun-To-Earn gameplay model, wherein the player can earn real NFTs within the game.
Regular gameplay events allow players to earn crypto or NFTs while showing off their avatars and outfits.
Fashion League will offer the player creative freedom in designing their store and outfits to stand out and win contests. You can personalize your whole space, as well as your aesthetic.
You can even team up with merchandisers to sell and trade your products.
Conclusion: Costs Are Volatile
Whatever step of the process you’re in, you’ll likely see fees changing quite a bit. You’ve probably noticed that even just from reading this article.
Gas fees are always subject to change depending upon the degree of traffic in the blockchain at that moment, and those fees can be applied both to cryptocurrency exchanges and NFT minting or purchasing.
Many entrepreneurs go virtual, cultivate their digital economies, or create businesses within NFT games.
So pay close attention to traffic on the platforms and blockchains you use, and invest promptly. There’s an ever-expanding world out there waiting to see your future NFTs. Get started today with Fashion League.