Non-fungible tokens or NFTs are becoming a popular way to buy and sell digital assets. However, as the world of blockchain is new to many people, there is often confusion about how much they cost and where you can purchase them.
You may have heard some NFTs selling for big money. However, as the marketplace is a fluctuating space, it’s helpful to understand some of the basics to get an idea of costs.
The NFT minting process
Unlike cryptocurrency, NFTs are unique as they are not interchangeable. When you have a piece of digital creative work, an NFT can be used to personalize its ownership. This process is called minting.
In the minting process, the creative work is encrypted with a code from the blockchain. This is unique to the digital asset and, once in existence, cannot be amended or deleted.
Once minted, NFTs are hosted in a marketplace and can be bought and sold within the platform.
How much do NFTs cost?
Unfortunately, there is no clear-cut answer on the cost if you want to buy NFTs. This is due to many factors that affect the price and marketplace of NFTs. Some of the main elements of how much they cost come down to the quality of the project, data size, gas fees, and other aspects. Rarity also plays a significant part in how low or high an NFT price goes.
The activity on the blockchain also has an effect on how much an NFT costs. For example, on weekdays they are generally higher as there is a lot of movement during this period.
For a very wide ballpark figure, prices can range from a few hundred dollars to millions. One of the most notable NFT sales was Jack Dorsey’s first tweet. The Twitter founder sold this for $2.9 million, and others have shared similar successes.
It’s not just the cost of an NFT you need to consider – fees are a major factor in the overall cost. If you’re thinking of minting an NFT, then gas fees are one element that varies significantly within the market. These are payments to cover the transaction carried out on the blockchain.
When buying an NFT, the marketplace you choose will charge fees, including upfront exchange fees, charges on each sale, and subscription fees.
The most expensive NFTs sold so far
Whether or not you’re new to the world of crypto and NFTs, you will have probably heard of Beeple or, as he’s otherwise known, digital artist Mike Winkelmann. Beeple holds the current record for the most expensive NFT ever sold. It was auctioned by Christie’s and was the first piece of digital art they’d ever auctioned off. It reached a whopping $69.3 million.
CryptoPunks created another top NFT price. This digital art features pixelated faces and has amassed a large following in recent years. These artworks make up some of the highest value NFT sales, with one of the top performers coming in at $23.7 million.