How to make an NFT

• The use cases for NFTs are vast — ranging from artistic expression and digital collectibles to in-game assets and online avatars.

• Numerous blockchain platforms support the creation of NFTs, with the most popular being Ethereum.

• Creating an NFT collection (or one-off NFT) is a relatively simple process, made easier with off-the-shelf tools.

A non-fungible token (NFT) is a digital asset which is, above all, unique.

Where cryptocurrencies like Bitcoin (BTC) and Ether (ETH) are made up of individual units that can be exchanged for equal value, two NFTs cannot be substituted like-for-like.

What's the value in this?

Well, each NFT effectively acts as a record of ownership, written immutably into the blockchain. Usually, this ownership is over a piece of media (a digital file like a .jpeg, .png or .gif) — and the NFT itself serves as a public certificate of authority.

Want to learn more about NFTs and their applications? We've got you covered in, What is an NFT?

Creating such an asset may have once only been achievable by blockchain-savvy developers. 

But today, a wide range of pre-built tools are available that make launching NFTs simple — whether you want to bring to life a 1/1 piece of artwork or create a community around a programmatically-generated NFT collection.

Before diving into the exciting world of Web3 and NFTs, you may want to consider some of the following factors.

As with virtually all blockchain-based activities, the creation of an NFT collection (and the future distribution of each piece) will incur transaction fees. These vary depending on the blockchain you choose: Ethereum, for instance, has comparatively higher fees than an alternative like Solana.

For more information, check out our Kraken Learn Center guide, What is a blockchain gas fee?

Additional costs that should be taken into account include:

• Possible listing fees (to make your NFTs available on an NFT marketplace)

• Marketing/promotion costs (to raise awareness of your project)

• Hosting costs (for an associated website, or, should you choose to host your NFT files on a third-party database)

If you're dealing with digital content, you'll need to familiarize yourself with the relevant rules (e.g., copyright and intellectual property rights).

You may also want to consult a professional on the regulations surrounding the issuance and distribution of NFTs in your desired jurisdiction(s), and the tax implications pertaining to sales (profits are often subject to capital gains tax).

See our complete U.S crypto tax guide, including NFT taxes, here.

Which blockchain best suits your needs? Cost shouldn't be the sole consideration here — a lesser-known and cheaper blockchain may result in less spend, but it may also isolate you from a larger prospective audience that interacts primarily within, for example, the Ethereum ecosystem.

Prior to starting, we recommend researching the various blockchains — get to know their communities, their top projects, and where your own might fit in.

With the previous points addressed, you can start to think about what your digital asset actually represents.

Is it a collection of 1,000 blockchain-based membership passes, which grant holders access to unlockable content, or in-person events? A 10,000-piece collection of unique fantasy characters, each with different rarities and traits, that serve as digital avatars for a metaversal community? Or a limited series of unique artworks with no additional features?

Your project might be a combination of these — or something different altogether. Crucially, you should allocate some time to codifying your plan, fleshing out the 'lore' of your collection, and scoping out requirements (e.g., smart contracts, art design, and other necessary resources).

For the purposes of this article, let's assume that you're launching a collection of 5,000 generative cartoon characters with a maritime theme on the Ethereum blockchain.

Many of the steps detailed below will work across other blockchains, though each typically boasts its own NFT token standards, programming languages, and supporting platforms.

To keep things simple, let's also assume you are not considering adding any advanced functionality. To learn a bit more about those features and the the different ways you can use NFTs, you can check out our article What can you do with NFTs?

Instead, let's assume you are interested in creating NFTs with a view of listing them on an NFT marketplace to hopefully sell.

We're about to detail the steps for NFT creation at a high level — however, you may choose to use a software suite that takes care of some (or all) of these steps, such as One Mint's NFT Art Generator.

It's important to conduct due diligence on any and all NFT-related platforms before creating accounts or parting with any money. This may involve reading trusted reviews and testimonials, among other things.

As mentioned, your hypothetical project's characters are generative: in NFT speak, this means they'll follow a similar blueprint, but they'll be distinguishable by their unique combination of traits.

For good examples of this, check out the Bored Ape Yacht Club or CryptoPunks.

First, you may want to group your traits into categories, such as the following: background color, hat, hairstyle, species, and eyes.

Within these categories, you could also add different variants. Background colors, for instance, may come in white, blue, green, orange and gold. Eyes may have 10 different permutations, including sunglasses, swimming goggles or regular eyes.

It's important that there are enough traits in the mix to create 5,000 unique NFTs — otherwise, some members of the collection will be visually indistinguishable from others.

Once you're happy that you've narrowed them all down, you can begin to design them in your preferred software. If you're not proficient in digital art, you may opt instead to work with a trusted digital artist.

With the artwork done, it's time to bring your characters to life.

This stage of the process involves stitching traits together to create the pieces in your collection.

Again, you can use pre-built software (like Bueno), create a script yourself, or grab an existing one from GitHub.

Once the process is finished, you'll have a collection of artworks that feature every possible combination of traits. Assuming the categories above each have 10 traits (with the exception of background color, which has five), you could theoretically create a maximum of 20,000 unique pieces.

After you decide on the final 5,000, it's time to generate the corresponding metadata— JSON-structured files that detail things like the NFT's name, description, traits and location.

Here's an example of what an NFT's metadata can look like, taken from the Bored Ape Yacht Club collection.

NFT metadata is the distinguishing feature that sets this type of crypto asset apart from others.

Most NFTs store their art (and metadata) off-chain, as it would be too expensive to embed them directly into a blockchain. The collection's smart contract instead stores a link to the files. The top options for this are IPFS (as seen in the previous BAYC example) and Arweave.

Some choose to use centralized alternatives for their collections, but it isn't recommended — should you lose access to that domain, a bad actor could tamper with the metadata.

Once you've uploaded all your files, you'll generate a link that can be included in your smart contract. If your link was, for example, ipfs://kraken123 and your files were numbered, you could individually address them with, e.g., ipfs://kraken123/1, ipfs://kraken123/2, etc.

You can also consider implementing lazy minting to save on costs: instead of minting 5,000 NFTs immediately, you'll delay minting until a user interacts with the smart contract, allowing them to cover the gas fees.

Note: we haven't discussed trait rarity, but that would be easy to implement at this stage: you'd simply specify that some traits should be more or less prevalent than others. An example of trait rarity might be to categorize NFTs further as being either common, rare, or mythical.

To learn more about what makes on NFT rarer than another from the same collection, check out our article What is an NFT rarity ranking?

Now, we can shift our attention to the blockchain part of the process.

On Ethereum, you can use the programming language Solidity to write your own smart contract, which will define the rules for the NFT collection.

However, you don't necessarily have to write this from scratch.

The ERC-721 standard is a popular blueprint used by many for creating NFTs smart contracts.

This will ensure that your tokens are widely compatible with other Ethereum-based marketplaces and dApps, and also allows you to map the metadata to each token in the collection.

OpenZepplin is a great repository for Ethereum smart contracts, rich in resources for those experimenting with Solidity.

Additionally, you can find more information about ERC-721 here, and put what you learn into practice via a browser-based tool like Remix.

To learn more about smart contracts and the important role they play in the crypto ecosystem, check out our article What is a smart contract?

Once the contract has been created and thoroughly tested, it can be deployed on the Ethereum network. And that's it!

Now, it's time to get the word out about the project and grow its community — possibly via X, Reddit or Discord.

You might also want to consider networking with like-minded creators and their followers, listing NFTs for sale via marketplaces like Kraken NFT, OpenSea and Magic Eden, and continuing to create value for token holders with a clear roadmap and frequent communication.

Of course, there are those who simply want to create NFTs for fun. If so, this is the part where you can simply enjoy the digital creations you've brought to life and display them online for all to see.

Non-fungible tokens are incredibly flexible, and can be tailored to a range of individual and business use cases.

• Artistic expression: NFTs are a novel avenue for artists to digitize their work — empowering them to sell their works in a global marketplace, and to experiment with new mediums.

• Digital avatars: by owning a unique piece within a wider collection, holders of an NFT can signal their individuality while aligning themselves with a community of holders that share their interests or values. One need only look to the popularity of PFP collections (e.g., Pudgy Penguins) to see how NFTs can become integral to individuals' online personas.

• Proof of Attendance Protocols (POAPs): organizations can mint POAPs as a souvenir or digital badge, which immortalizes the holder's attendance or participation in IRL or virtual events.

• Digital collectibles: launching a series of digital items can help strengthen a brand and better engage with customers.

• Gated perks: businesses can effectively leverage NFTs as digital 'VIP cards' — granting token-gated access to benefits, discounts or exclusive content to holders.

In summary, now you can continue on your crypto journey with a better understanding of the NFT creation process using the Ethereum blockchain — from the planning stage through to mainnet launch.

It's worth remembering that today's top NFT projects are valuable due to the communities surrounding them. To grow your own collection, clear communication, a solid roadmap and a strong brand are invaluable for fostering a community of Web3 enthusiasts that will champion your vision.

Kraken NFT is fast becoming the venue of choice for traders serious about non-fungible tokens. With gas-free transfers and off-chain executions, costs are only incurred when moving assets to or from the marketplace.

Beginners and pros alike praise its easy signup, intuitive search tools, and rich suite of educational resources. 

Supporting hundreds of collections across Ethereum, Polygon and Solana, and enabling payments in both fiat and crypto, Kraken NFT is the premier destination for users looking to grab their next NFT.