The entire value of NFTs issued in 2020 on the Ethereum network alone was $340 million. At the conclusion of the tenth month of the current year, this amount totals $14.5 billion.
You did read that correctly. Even if there are still two months left, all I’m focusing on is the value of NFTs produced in Ethereum. Who then would wish to be excluded from such a step? Quite a few. What are the requirements for participation, then? How to successfully mine an NFT, to begin with.
In this essay, I’ll go through the key ideas to have in mind when successfully mining an NFT to integrate oneself into the world of digital art.
First, what does “minting an NFT” mean?
I’ll start by explaining what “minting” is before we get started. Then I’ll give that verb my full attention. By literally translating the English word “mint” into our language and adding the vowel “ear” to give it a vocal quality, the word “mintear” gained popularity in the ecology.
In linguistic matters, the Spanish language is still unable to provide a translation that pleases the sophisticated tastes of the cryptos.
An NFT is what?
Three words are represented by this acronym: NFT. A token changeable tells us whether it may be exchanged for another token for the same value. For instance, nobody cares “when a BTC was mined” because all BTC has the same value regardless of when they were created.
The letter “N” in the acronym indicates the opposite in the case of NFTs. These are a sign that, by their very nature, cannot be exchanged among themselves because of their distinguishing and unreproducible grade.
This definition also leads us to the closure that its value is wholly and solely subjective. This straightforward statement will aid us in understanding the past, present, and future of this market. Therefore we must not lose sight of it.
What is found constructed around these NFTs? Metaverses, also known as parallel universes, money-making games, blockchain representations of real assets, and limitless potential. The majority of those 14.5 million dollars, however, are tied to collectible photographs made on the blockchain, whose arbitrary price soars to incredible heights.
How did this market of 14.5 million dollars a year for digital photos develop? Mine them is the initial stage.
What is an NFT minting?
Most often, programmers and creators worked together to build these collections of images. While the latter group is in charge of the picture design, the former is responsible for building the programming to hosting the NFTs on the blockchain.
We, the users, enter the picture here. We make a supposition about the potential worth of this image, collect the required cryptos, and get ready for the renowned NFT “mining.”
What, then, do we do while mining? We communicate with a smart agreement technically. We transfer the required number of tokens for the “minting” function from our wallet, together with the essential gas, and we hope that the transaction will be a success.
If the latter occurs, the properties of our NFT are “decided” by a random procedure. So we watch to see if our NFT will come with mustaches, 3D spectacles, or a T-shirt sporting the network’s emblem.
From the user’s perspective, mining an NFT entails taking the necessary steps to produce it, bring it to “crypto-life,” and enjoy it in our wallet while we wait for the chance to receive a financial reward.
Let’s understand what is required to effectively complete the verb now that we have defined it and established what will happen if it is used.
How can I mine an NFT effectively?
Even while this is not a very difficult process, it can be challenging for a newbie to follow from beginning to end. Not only will everything that depends on the user be covered by the measures listed below, but your NFT will also be safeguarded.
When NFT collections are launched at events and are well received by the community, the blockchains where they take place often become crowded. So, to successfully complete this quest, a healthy dose of luck and a great internet connection are fantastic partners.
Let’s go to the guide without further ado.
At the risk of oversimplifying a maybe relatively obvious point, we must first determine the when, where, and how of the event in order to mine an NFT.
What are the top resources for news about mining events, then? There are three, in my opinion, and they are listed chronologically as follows:
Why is the order historical? My experiences with NFTs have generally gone as follows: When a new protocol is released and is referred to as “NFT collection,” I am informed via Twitter. They typically give me a sample of a few pictures, and I can usually determine if I like them or not.
They will soon introduce their Discord channel, their primary means of contact. Despite being incredibly effective and well-organized, I find this social network to be a little too much. As a result, I don’t log in other times than to complete “missions” or requests from the protocol, which I announce on Twitter.
Telegram, the final. It is a good thermometer to gauge the mood of persons interested in the project and keep up with their expectations, whether it be the official group of the collection if it exists or an unofficial group dedicated to the effect.
Let’s get ready to mine now that we are familiar with the project.
The Period Mine
The day of the project’s official release via the renowned NFT minting website development has finally arrived. Ways to become ready?
To have cryptocurrency ready to cover network gas and mining costs
Link the wallet to the website that “hosts” the event or offers a platform for it.
I make an effort to use as much internet capacity as I can. To achieve this, I often disable all wifi-connected devices besides my computer.
In accordance with the project’s suggestions, wait until launch time. For instance, some advise users to wait until the countdown is complete before refreshing the page, while others advise the opposite.
Wait two or three seconds after pressing the infamous “mint” button before selecting it (just my subjective opinion and experience are being used here).
We can only wait for the transaction to be approved if luck and the Internet gods have granted us their blessing.
I lied before; why not again?
The moment for patience arrives once the procedures from the previous section have been finished and the transaction has been accepted. Generally, within a few minutes, the photographs can be viewed on the page where you minted them or in the wallet itself, depending on the network.
When the NFT manifests as a digital image, it’s time to reach out to reliable groups and begin sharing the experience with them. Be ready for periods of exhilaration and uncertainty.
Tips for safety
NFTs are tokens, much like fungible tokens, so it is important to take security precautions to prevent the well-known hacks and thefts that are common in the cryptocurrency sector.
Always enter projects that you deem secure and, if at all possible, with well-established teams. Several initiatives that cause users to lose all of the coins in their wallets after the “mint” transaction is approved have been observed.
I have resorted to the habit of making a new wallet. As a result, multiple times. I only send it the money needed to take part in the “minteo,” as long as it’s money I’m ready to lose.
Before I wrap up this piece, I wanted to bring up a privacy-related topic. We are aware that using freshly-minted NFTs as profile images is currently popular because we see it every day on many networks. Although it allows us to proudly display our assets to the public, it also makes our money easily accessible to evil individuals. I have only ever disclosed my NFTs to people I can trust because of this.
When it counts, what should we do with our NFT?
We can start analyzing the upcoming choices once we have the NFT in our possession. These will, of course, depend on our intentions. If we want to gather it (or if there are rumors that the NFT may be beneficial in the future), we can plunder it; otherwise, we can sell it on the market for the highest price.
We now reach a challenging section. The cost of the NFT is entirely arbitrary, as I mentioned in the introduction. However, it serves no purpose to offer it for sale at an asking price that no one will be ready to pay or at a value that does not persuade us. What objective criteria can we, therefore, use to support our subjectivity when determining the price of an NFT?
The pricing floor and ceiling come first. Pay close attention to the marketplace and contrast the minimum and highest prices. Second, watch for lists of rankings or rarities to be published. With the help of these tools, we will be able to identify our NFT in the collection and determine its price based on its ranking or, at the very least, by comparing it to items of a similar nature.
These factors will make it much easier to calculate a digital image’s sales value.
There is no other way to end this post except by emphasizing that nothing you read here should be regarded as advice for purchases. Not all falsehoods are created equal, despite the numbers we might see in the networks.
There are value-added enterprises that will increase in value over time or make money right away, but there are others that, once they are discredited, will be forgotten.
Always do your own research and avoid being persuaded by people who depend on their networks’ influence if you want to succeed in the crypto ecosystem. The motivation for mining an NFT should be personal and the result of careful research. Undoubtedly, one of the benefits that appeal to me the most is having a piece of the ecosystem’s history.