You can earn money in various ways through NFTs. However, it’s important to understand that this isn’t a get-rich-quick scheme.
Therefore, having a good understanding of NFTs and how they work puts you at an advantage.
NFTs are currently the most popular in the cryptocurrency community. From respected companies to celebrities, everyone’s thinking of coming up with their own NFT.
But, all NFTs aren’t the same. Some are entirely useless, while others are worth a tidy sum.
This article aims to break down what you need to know to make money with NFTs. After all, NFTs aren’t only for the heavy hitters or those high-end art sellers. You, too, can make a fortune out of this blockchain technology.
Let’s dive in.
How To Make Money With an NFT
NFTs have opened everyone up to a world with new and never-ending possibilities where you can buy and sell digital assets like video clips, memes, artwork, and audio files.
NFTs are backed up by the blockchain and have a virtual certificate that shows authenticity.
Listing your digital assets can be one of the passive income ideas that can help you to earn money for a long time.
Some of the methods include:
Selling NFTs in a Marketplace
One popular way people make money with NFTs is by selling them on an NFT marketplace. The best NFT marketplaces include:
- Axie Marketplace
While you can’t replicate NFTs, renting is another way to make money from them. Renting the NFT involves giving it to someone else for a defined period, and you’ll get payment in return.
Your digital asset can earn you royalties for a lifetime, even when you’ve already sold it. You need to create terms so that when someone purchases the NFT, you still earn royalties from it.
NFTs offer incredible opportunities in various fields such as sports. People who love sports love sports collectibles like T-shirts and badges. Therefore, sports-related NFTs offer you the chance to make money.
NFTs in sports aren’t only about badges and T-shirts. They could also include fans’ historical videos, photos, favorite moments, and so on. In short, you can convert anything sports-related into a digital asset.
In cryptocurrency, staking is the storing of digital assets in stake form. You then assign the NFT to the entity willing to maintain it.
In return, that entity pays you the reward’s share. Therefore, you can choose to stake your digital asset to earn you incentives and rewards on different sites.
One of the most common sites is Rplanet.
Don’t you love that we’re living in times when you can enjoy gaming and at the same time earn from it? Well, blockchain-based games give you room to purchase and trade NFTs. Such games include CryptoKitties.
One CryptoKitty has in the past fetched a little over $300,000.
Consequently, more games are coming up with more fairly-priced NFTs. Some of these games are even offering free collectibles to the initial players.
Create and Sell an NFT
Do you love creating? Or do you have some creations you’d love to monetize? You might be able to increase your income by selling your creations as NFTs. You can sell whatever digital asset you create as an NFT.
Sometimes, people take their inventions a little too far, like a confident New Yorker who decided to sell his fart as an NFT. Crazy, right?
So now you know that it’s only your imagination that’s limiting you.
You can make money with NFTs by buying and selling digital assets for a profit. A Miami-based art collector, Rodriquez-Fraile, flipped a digital piece of art for a thousand times more than its initial price in less than six months.
As the person wanting to make money from the NFT, critically look at the NFT’s ability to make you money when you sell it off.
Investing in NFT Startups
The last way of making money with non-fungible tokens is by investing in startup businesses. If there’s one thing we’ve learned from NFTs, it’s that they’re not just a passing trend.
NFTs are primarily used in many industries worldwide to create positive change. Also, various NFT startups are showcasing remarkable innovations, especially in the cryptocurrency world.
Therefore, it’d be great to invest in the startups as they begin their journey in the NFT world. Keep in mind that just like all other investments, there are risks involved. It’s, therefore, paramount to invest wisely and do your research.
What’s the Point of Owning an NFT?
In general, an NFT is an ownership token. It’ll give its owner the rights to a digital media piece like a meme, GIF, photo, or artwork. That’s why digital creatives leap into it as a way of owning and marketing their work.
An NFT allows you to own the original version of the item. It also contains built-in authentication. The purpose of the built-in authentication is to show proof of ownership.
Hence, collectors put more value on the bragging rights of the digital asset than they do on the item.
Also, for the investor to bet on the increase in value of Ethereum in the long term, those buying ether for non-fungible tokens have the potential of being worth the investment.
Therefore, the point in owning an NFT is because they’ve become one of the most profitable experiments in blockchain history.
How Do NFT Creators Make Money?
NFT creators make money by selling digital assets on different marketplaces of their choice. Some of the ways to make money through NFTs include:
- Investing in NFT startups
You can make money through investing in NFT startups just as they’re coming up. The chances are, that your investment will bring in returns in due time. After all, you have to take risks to get returns, right? Right!
- Trading NFTs
Trading NFTs involves buying and selling digital assets to make profits. Remember to perform your due diligence and research on the ability of the NFT to make you higher profits.
- Creating and selling NFTs
Creating NFTs and selling them is another way of making money with these digital assets. Therefore, you’re free to be as creative as possible to come up with something very unique that’ll fetch you a tidy sum.
- NFT gaming
There are blockchain-based games you can trade to make money. Such games include:
- Axie Infinity
- The Sandbox
- Star Atlas
- Age of Rust, etc.
- Staking NFTs
Sites such as Rplanet make staking digital assets easy. Through staking, an entity pays you a share of the rewards. The best part is, you can use different sites at a time.
- NFT sports
You’re free to convert anything sports-related into an NFT and make good money from it.
You can make a lifetime of royalties once you’ve sold an NFT.
- Renting out NFTs
You can rent NFTs by giving them out to someone for a period at a cost.
- Selling your NFT in an NFT marketplace
You can register your NFT with a reputable market and make your sales without being the original creator of the NFT. Check out our comparison of Rarible vs OpenSea for information on two of the most popular NFT platforms.
Is an NFT a Good Investment?
Yes, NFTs are a good investment. Accordingly, selling NFTs isn’t only meant for creators.
Some investors and entrepreneurs take advantage of NFTs just like stocks. They, therefore, make a profit from buying and selling the NFTs.
Additionally, you can sell them if you have unwanted NFTs, just like creators do. The only difference is that you don’t have to go through the minting process.
Some of the best NFTs to invest in include:
- The Galactic Gang
- Pudgy Penguins
- Bored Ape Yacht Club
Perhaps the most significant advantage of investing in an NFT is that it allows content creators and artists to have full copyright ownership. Hence, it enables you to generate revenue while keeping the copyrights.
Therefore, with NFTs, you’re sure of security.
How Much Does It Cost to Make an NFT?
Minting an NFT depends on your blockchain of choice. The most popular blockchains include:
Ethereum is the most common way of minting digital assets like NFTs. Thus, minting using the platform initially costs a transaction fee of $50 to $100.
The transaction cost used to depend on the time of day and the price of Ethereum.
Nowadays, you can mint on the platform for free. Hence, if you want to mint your NFT, Ethereum is the best marketplace.
Solana is one of the price-friendly alternatives to minting NFTs. Additionally, there are 3 transaction types when minting on the platform, 2 minting approvals, and a listing transaction for the NFT.
Polygon partners with OpenSea to mint NFTs for free. Accordingly, you won’t incur upfront charges when creating your NFT.
The lack of costs is possible because you can choose lazy minting.
How Do I Trade in an NFT?
The trick you need to understand when trading NFTs is to know when to sell them.
Thus, the appropriate time to sell the NFT depends on what NFT it is and the intention when buying the NFT.
In addition, you need to gauge whether other people have an interest in it.
Thus, quick research on the marketplace and the internet helps you determine interest in the NFT.
Furthermore, you need to factor in the appreciation and depreciation of prices.
After that, calculate potential profits by factoring in royalties paid towards the initial owner, listing fees, and gas fees. These charges reduce the final profit amount.
If you intend to get into complex trading of NFTs, you need an in-depth understanding of the crypto industry, and that may require a crypto professional.
If you wish to find an NFT to sell, you’ll need to visit an app or marketplace dedicated to the purpose. There are various marketplaces you’ll find online offering different focuses and benefits.
Is It Profitable to Sell NFTs?
NFTs have, over time, become the most profitable blockchain experiment in the history of cryptocurrencies. You may choose to create your NFTs or treat them as stocks to buy and sell them.
When you buy a profitable NFT, you have the potential of making good profits later. But remember that the reverse is also possible.
In short, making money through NFT sales varies from person to person.
Like other cryptocurrencies, NFTs may become worthless over time or increase in value. So, even though the future of NFTs is highly speculative, it’s still worth the try.
What can I do with a NFT?
NFTs offer several benefits to collectors and digital artists. Here’s an overview of what you can do with NFTs:
- CryptoKitties universe
Today, you’ll find crypto celeb NFTs, monsters, and even puppies you can collect. The users of CryptoKitties interact with other third-party applications to play and customize the digital cats.
Another leading use of NFTs is gaming. Some of the top NFT games include My Crypto Heroes, Gods Unchained, Decentraland, and Sorare.
- Digital art
NFTs offer specific benefits to collectors and digital artists. Before the NFT era, it was challenging to authenticate digital art. But with the introduction of blockchain technology, there’s the tracking of digital art. Also, you can verify the scarcity, authenticity, and provenance of the NFT.
Making money with NFTs is akin to gambling. It’s an expensive affair. But, it’s possible to succeed in the venture.
If you play your cards right, you could potentially be on the path to joining the category of the newest millennial millionaires living off their digital assets.
The art of making money using NFTs is just starting, and many people and businesses are joining the craze.
Furthermore, the fact is that well-known NFTs are simple art pieces. Therefore, people have yet to thoroughly explore the NFT market.
We can only wait to see what the NFT future holds for those willing to take the risk.