Chapter 1: The Beginning of My NFT Journey

I decided to embark on the adventure of creating and selling my own NFT (Non-fungible Token) artwork. How difficult could it truly be? Surprisingly, crafting the art was the simple part.

I've encountered various NFT artworks, some of which are stunning and far beyond my Art Minor background. Yet, I've also seen pieces that appear somewhat careless and amateurish, and despite that, they're fetching real cryptocurrency that can be converted into cash, if that's what you desire.

Selling NFT art is not as straightforward as setting up a street-side booth and displaying your sketches on a blanket. There’s a structured process involved, complete with its own infrastructure and a few hurdles along the blockchain path.

I got a glimpse of this world when I attempted, much like Twitter's CEO Jack Dorsey, to auction a couple of my tweets on Valuables. Anyone can auction their tweets, but participating in the sale requires a cryptocurrency wallet.

To sell NFT art (or any digital NFT item, including a tweet), you must dive into the cryptocurrency realm. It's akin to traveling to another planet with a heated Earth-like environment, vast mineral resources, and a bustling community eager to extract value.

As I mentioned a few weeks ago, I didn’t possess any Bitcoin or other blockchain currency at that time. (Well, that changed this week.) However, it’s not just about the currency; a wallet is also essential for storing any blockchain assets you own and for receiving them from others.

When a friend encouraged me to try self-minting my NFT artwork, I began researching cryptocurrency service providers. NFT platforms like Nifty Gateway and Rarible list compatible crypto wallets such as Wyre and an asset exchange firm named Wax.

I started the registration process on both platforms, but to my dismay, when I entered my address, I discovered that New York State was absent from their options. It turns out that neither wallet is authorized to operate in New York, which reflects the current state of this burgeoning industry.

Ultimately, I settled on the well-known Coinbase, where I acquired my first small amounts of Ethereum. My aim was to establish an Ethereum foundation that would allow me to create my inaugural crypto wallet.

It was during this process on Coinbase that I was confronted with the disheartening Dollar-to-Ethereum exchange rate. A single Ethereum was priced at nearly $2,800. I intended to purchase $25 worth, but after Coinbase took its commission, I ended up with $23.18, which equated to 0.0130444 ETH.

Coinbase accepts Mastercard and Visa, but only for debit cards, so I had to link Coinbase to my bank account. This is one reason why it's advisable to select a more established cryptocurrency firm like Coinbase over a smaller startup.

Coinbase does not directly connect to NFT platforms. To facilitate that connection, I needed a wallet as an intermediary. Luckily, Coinbase has a crypto wallet app, but linking the two requires navigating several steps. It would be much more practical if Coinbase offered these services as a single app, similar to how traditional banks consolidate their offerings into one platform.

I returned to Rarible to try creating my first NFT artwork. Before proceeding, I had to connect my Coinbase wallet to Rarible to enable cryptocurrency transactions—vital if I ever sold my NFT art.

On Rarible, you set parameters such as the collectible's name, description, the quantity for auction (“1 of 10”), your token type, and royalties (for resales of your NFT). Although I typically save my artwork as JPGs, Rarible prefers PNGs, GIFs, MP4s (for video), and even MP3s, a format that hasn’t been widely used since the early 2000s.

Similar to eBay, Rarible allows you to set an “Instant Sale Price” (akin to eBay’s “Buy Now”), but that’s where the resemblances cease. You must also choose between an ERC-721 token and a Rari, which is Rarible’s default token scheme. The latter simplifies many processes, like assigning a token name, applying a symbol, and selecting a URL.

I opted for the Rari token, uploaded my artwork, and selected “Create Item.”

This is when the magic began, but reality soon hit hard.

NFT art derives its value solely from the token, that unique code from the blockchain that cannot be replicated or taken from you. Importantly, the token doesn’t materialize the moment you click create. You need to mine it. As soon as I clicked create, Rarible prompted my Coinbase wallet app, seeking permission to mine a token. My phone displayed a notification indicating that Rarible intended to charge me a mining fee of $15.93, and I lacked sufficient Ethereum in my wallet to cover this expense.

Almost $16 just to list a collectible that might never sell felt exorbitant. Coinbase, which does not receive this fee, explained via a pop-up that “Miner fees are high right now” due to “blockchain congestion.”

This is a consequence of the sudden NFT gold rush. Following news that the artist Beeple sold his NFT JPG, The First 5000 Days for a staggering $69 million, everyone wanted a piece of the NFT market. That excitement is likely what has overloaded Bitcoin mining operations, which, while entirely digital—no hard hats or soot required—still necessitate considerable time and energy to mine even small portions of the limited Bitcoin supply.

To complicate matters, crypto transactions can hit you with a double whammy. If I decide to transfer my meager Ethereum holdings from Coinbase to my Coinbase wallet, I would incur an additional miner fee of $9.12 (again, not going to Coinbase). In essence, my total miner fees would deplete my Ethereum account entirely.

I stared at these notifications and my $23 in Ethereum, pondering whether I had already missed the opportunity. Who would even consider paying 0.000000011 ETH for my rudimentary cartoon, let alone cover my original $25 investment?

As I write this, I’m still weighing whether to convert more cash into ETH, upload a few collectible images, and possibly diversify my mining exposure. It seems I’m even starting to think like a crypto enthusiast.

Update: You can find my first NFT here.

Chapter 2: The Road Ahead

In this video, learn the easiest way to create and sell your own NFT in 2024. A comprehensive guide that simplifies the NFT creation process and offers valuable tips.

This video, NFT 101 for Photographers: Part 2, provides essential insights into creating your first NFT as a photographer. A must-watch for those looking to enter the NFT market.