How to Make Money With NFTs
If you’ve been anywhere near the internet for the past two years you have probably heard the term NFT or Non-Fungible Token being thrown around everywhere. You might have also picked up on the fact that some people are making millions off of these things.
The 69.3 million dollar sale of Beeple's NFT earlier this year broke the internet and changed how everyone viewed these digital collectibles.
Everyone is now scrambling to dip their toes into this fast-growing technology. And don't worry if you've been sitting on the sidelines unsure where to begin. The ship hasn't sailed very far yet. You still have time to come along for the ride.
That said, if you dive into NFTs too recklessly, it’s pretty easy to lose your shirt. That’s why you need to have a strategy in place.
If you want to be a part of that tiny group of people that have cracked the code with NFTs you’ve come to the right place. In this article, we’re going to be looking into how you can make money with NFTs
What is an NFT
An NFT is a digital asset that cannot be altered or recreated. One way to think of these tokens is as the digital equivalent of precious artwork. Each piece is one-of-a-kind and worth a specific amount.
Just like a piece of art, an NFT can be sold for cryptocurrency or fiat currency. However, the asset transfer of the token, much like Bitcoin, is recorded on the blockchain. This establishes who owns a specific NFT. Each NFT is linked to the digital or, in some cases, the physical asset of the original owner.
Any digital object can technically be converted into an NFT. The beauty of NFTs is that anyone can convert famous tweets, Facebook posts, Instagram photos, and other content into NFTs and sell them.
You may be wondering why people are spending such large sums of money on something as intangible as NFTs. And you're probably wondering how people make money from them since they're just jpegs. Don't worry we have you covered.
What makes an NFT Valuable?
The value of an NFT is mostly determined by consumer interest, just as it is with art. The scarcity of supply and the number of interested buyers are important factors in determining how much an NFT is worth. You could think of it being similar to a trading card or a limited edition collector's item.
Even though any image can be converted to an NFT, there is nothing stopping people from copying or sharing it. This is where the blockchain comes in. The blockchain is a white paper document that stores and clearly shows who holds the ownership of NFTs. It cannot be forged.
One of the major drivers of its value is the upbeat feeling of having exclusive ownership of something a lot of people want.
Make and Sell NFTs
For the whole blockchain, NFT thing to work, you first need to know how to make an NFT in the first place. If you're a creative person with slightly above average computer skills you can start churning out your very own NFTs today! Yes, it’s that easy.
You must first decide which one-of-a-kind digital asset you want to convert into an NFT. It could be a hand-painted painting, a photograph, some collectible from a video game, a meme, a GIF, or even a tweet.
Verify that you own the intellectual property rights to the item you wish to convert into an NFT. Making an NFT for a digital asset you don't own could land you in legal hot water.
Once you've decided on your one-of-a-kind digital asset, you can begin the process of minting it into an NFT.
You'll need to decide which blockchain technology you want to use for your NFT. Ethereum is one of the most popular blockchains among NFT artists and creators. But you could also opt for other popular options like Binance, Smart Chain, Polkadot, or Tezos.
Then you will need to get a digital wallet and buy some cryptocurrency to trade and you’re all set to start selling NFTs. And just like in real life, if you want to sell an NFT you’ll need a marketplace to sell it.
Some of the most popular NFT marketplaces are:
Open Sea
Axie Marketplace
Rarible
NBA Top Shot Marketplace
Mintable
But you can’t just use any marketplace you want willy-nilly.
You will need to do your own research to determine which marketplace is the best fit for your NFT. For instance, Axie Marketplace is used for the popular NFT game Axie Infinity. Meanwhile, NBA Top Shot is a basketball-specific marketplace.
It's also worth noting that some marketplaces only allow their own cryptocurrency. Rarible, for example, requires Rarible (RARI) to make a purchase.
OpenSea is a great starting point for newbies. It enables you to mint your own NFT and is the market leader in NFT sales.
After you've chosen your NFT marketplace, you must link it to your digital wallet. This allows you to pay the fees required to mint your NFT and receive transactions from your sales.
Renting Out
We all know by now that NFTs are digital assets that cannot be duplicated. However, did you know that you can rent them out?
The renting process is surprisingly straightforward. It works in the same way that you would rent out a real estate property. Renting an NFT involves lending it to someone for a set period of time in exchange for monetary compensation.
Renting out is a good way to make money from NFTs without giving up ownership.
Royalties
Even after selling the digital asset to someone else, the creator can earn passive income through a lifetime of royalties.
The creator must establish terms before selling, and then, whenever someone purchases the NFT they created, they will continue to receive royalties for the rest of their life.
Royalties are a fantastic source of passive income for artists. Although it may appear a little difficult at first, royalties are an important thing to consider when it comes to earning money from NFTs.
Trading
In addition to selling NFTs, you can also trade them. Some investors prefer to treat NFTs like they are stocks. They buy them at low prices and sell them at a profit.
If you already have a collection of NFTs that you no longer need, you can easily sell them in the same way that you would if you made them yourself. The only step you will have to leave out is the minting process.
Pablo Rodriguez-Fraile, a Miami-based art collector, sold a Beeple digital art piece for nearly 1,000 times more than the original price in less than six months!
However, not all NFTs are created equal. Some are worth millions of dollars, while many, many others are worth almost nothing. As a collector, you must scrutinize an NFT for the possibility of profiting from its resale in the future.
Another important thing is knowing when to sell. This is critical when trading NFTs.
Having to consider all these things may make profiting through trading appear risky to many, and the truth is, well, it is. But the payoff can be well worth it.
NFTs in Gaming and Sports
NFTs are opening up new possibilities in every field, including sports and gaming.
NFTs are starting to tap into the gaming market and can now be used to buy and trade in-game items in blockchain-powered games.
There are already some extremely expensive collectibles on the market, such as those found in the game CryptoKitties, that are becoming more and more difficult to get. In some cases, the price of a single crypto cat has surpassed 300,000 USD.
Recently, a growing number of games have been released that make use of less expensive NFTs. Some businesses even give away freebies to the first few people who sign up.
The sports industry, much like the gaming industry, is starting to adopt this technology. If used correctly, these digital tokens can be a pretty good money opportunity for sports like football and tennis.
They can also aid in increasing fan involvement in their favorite sports. Sports fans are always looking for sports collectibles such as badges, t-shirts, and so on. NFTs offer exactly that, albeit in digital form.
NFTs in sports can include more than just merchandise like t-shirts and badges. They can also focus on things like fans' favorite in-game moments, iconic photos, and historical videos.
In a nutshell, anything that holds sentimental value for fans can be turned into an NFT.
Staking
NFT staking is when someone locks up NFTs on a platform or protocol to receive staking benefits. This enables NFT holders to earn passive income while still owning their NFTs.
Its sweet. It’s simple. It’s easy.
Invest in NFT Startups
NFT startups are an excellent way to make money with NFTs while avoiding direct contact with the highly volatile market.
If NFTs have proven anything, it is that they are not just a passing fad in the crypto world. They have numerous applications in a variety of industries and have the potential to change the world.
There are a number of promising NFTs startups in the crypto market that are showing a lot of potential for the future. These offer an additional NFT investment opportunity as they take their first steps towards revolutionizing the future.
The Future of NFTs
It’s difficult to predict what the future holds for this relatively new technology. But if experts are anything to go by, NFTs are here to stay and will keep on growing.
It’s better to hop on the train before it leaves the station than to try to catch up after the fact. Are you on board? If so, send us pictures of your NFTs. We’d love to see them!