October 10, 2024

How to Get Started With Cardano NFTs: A Basic Checklist

EMURGO

How-to-Get-Started-With-Cardano-NFTs_-A-Basic-Checklist

NFTs (non-fungible tokens) have rapidly emerged as a new digital asset class, built on the secure and transparent infrastructure of blockchain technology. They’ve onboarded many users outside of cryptocurrencies to start engaging with decentralized networks, serving as a key entry point for many into the world of Web3 and blockchain. As one of the first blockchain-based assets to gain widespread mainstream adoption and resonate with popular culture, NFTs have become an increasingly popular topic of discussion.

For those considering minting or creating an NFT on Cardano, this guide is for you. 

A leading decentralized blockchain network with millions of users, the Cardano blockchain network offers a unique technical platform that has a growing NFT ecosystem of marketplaces, projects, and wallets for creators and collectors alike.

In this blog, we’ll walk you through a basic checklist to help you get started with tokenizing assets and issuing NFTs on the Cardano blockchain.

1. Set up a self-custodial Cardano wallet

The first step in your Cardano NFT journey is to set up a Cardano-based crypto wallet. This kind of crypto wallet is essential for storing your Cardano (ADA), NFTs, and interacting with decentralized applications (dApps) on the Cardano blockchain. 

It is a user’s gateway to the entire Cardano blockchain ecosystem of projects, marketplaces, and other dApps. Since these wallets tend to be self-custodial wallets where the user must download and set up their wallet’s private key, they provide the security and functionality needed to manage your digital assets. The wallet’s owner must always abide by wallet security best practices and safely manage and store their wallet’s private key. If the private key is lost or compromised, the user could lose access to the assets in the wallet.

Choosing the right wallet is critical. NFT users will want a widely adopted Cardano wallet that offers strong security features and compatibility with the dApps on the Cardano network. Since NFTs are typically purchased and managed through on-chain dApps, opting for a wallet that functions as a browser extension can be seen as a popular choice.

Yoroi Wallet is one such option that provides a secure, self-custodial wallet in a desktop web browser and mobile versions. Developed by EMURGO, it enables users to send, receive, store, and stake ADA as well as interact with on-chain Cardano applications. It also offers fiat on-ramps to purchase ADA as well as an NFT gallery while ensuring that a user’s private keys are encrypted for added protection.

Related reading:

2. Utilize ADA

The next step in a user’s Cardano NFT journey is to possess ADA, the native cryptocurrency of the Cardano network. ADA is essential for creating NFTs, as NFTs must be minted on-chain, and the associated fees must be paid in the network’s cryptocurrency. It’s important to possess enough ADA to cover these minting costs before launching an NFT.

Some platforms, such as NMKR, offer a solution that allows businesses and creators to mint Cardano NFTs without directly purchasing cryptocurrencies. It also removes the technical barrier to issuing NFTs as users can simply upload assets and the platform will tokenize them as NFTs.

However, it’s still important to hold some ADA as this ensures users can cover other network costs, such as transaction fees, which are necessary for interacting with the Cardano blockchain.

After purchasing ADA on an exchange or through Yoroi, users can deposit it into their self-custodial Cardano wallet to prepare to engage with the ecosystem.

How-to-Get-Started-With-Cardano-NFTs_-A-Basic-Checklist-IG

3. Use a Cardano NFT minting platform such as NMKR

Once a self-custodial Cardano wallet has been set up with some ADA, the next step is to decide how to mint NFTs. One approach is to create a custom smart contract that handles the minting process, but this can be time-consuming and may require specialized development skills.

As mentioned above, a more efficient alternative for most non-technical users is to use a Cardano NFT minting platform that manages the on-chain work. 

NMKR is an NFT and tokenization service built on the Cardano blockchain. It offers a variety of robust tools and features to customize NFTs without the need to hire dedicated smart contract developers, making it an ideal option for projects looking to streamline the NFT minting process.

Read more: How NMKR maximizes brand impact for businesses and projects through NFTs

4. Look at cold storage options

Once an NFT has been successfully minted on the Cardano blockchain, it’s important to secure a more permanent storage solution that safeguards the NFTs while still allowing them to be easily traded on-chain.

For advanced users, a hardware wallet or cold wallet is essential. A hardware wallet stores NFTs and cryptocurrencies offline in what’s known as “cold storage,” significantly enhancing security by keeping your assets disconnected from the internet. This minimizes the risk of hacks and unauthorized access as long as best practices are followed.

Yoroi, an open-source and self-custodial wallet for Cardano users, is also compatible with Ledger, a hardware wallet, and gives users the flexibility to choose the option that best meets their needs.

Read more: Explaining the different crypto wallet types

5. Trade NFTs (if desired)

Users can also sell their NFTs by visiting popular Cardano NFT marketplaces with a steady stream of visitors, increasing their chances of finding buyers for their NFTs.

Some places like NMKR offer a native fiat on-ramp via NMKR Pay, allowing users to purchase NFTs using traditional payment methods. This eliminates the need for potential buyers to worry about cryptocurrency transactions, broadening their market reach.

Read more: What is NMKR Pay?

NMKR: No coding is required to mint NFTs

NMKR facilitates the seamless tokenization of assets by making the NFT minting process. Its user-friendly platform accommodates formats like images, videos, and audio. Additionally, it extends support to files such as HTML, 3D files, and PDFs, providing a wide range of NFT creations.

Follow EMURGO on X and LinkedIn for more NFT content

Want to learn more about NFTs and their use cases beyond just images? Interested in asset tokenization?

Then, follow EMURGO on X and LinkedIn

About EMURGO

Disclaimer 

You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by EMURGO to invest.

Related articles