NFTs are a hot topic right now. Everyone is gushing about them and getting ready to enter the race, from big companies and small businesses to celebrities and everyday people. The NFT market reached $12 billion in 2021 alone, up from $162.4 million at the beginning of the year.
Despite the fact that some people are generating enormous sums of money with NFTs, many others are still waiting in the wings to make the most of it. If you fall into this category, I will teach you all you need to know about rapidly and easily making money with NFTs.
What’s an NFT?
The term “Non-fungible token” is used. A digital asset that cannot be altered or replicated is called a non-fungible token. These tokens might be considered to be the digital equivalent of works of art from a private collection. Each work of art in the collection is unique and has a certain value.
Like a work of art, an NFT can be sold for cryptocurrencies or traditional currency. But the token’s asset transfer is documented in the blockchain, exactly like with bitcoin. This proves who is in charge of a certain NFT.
You might be wondering why people are spending absurd sums of money on something intangible like NFTs at this point. Since NFTs are essentially simply jpegs, you may be wondering how anyone could possibly make money from them. We’ll talk more about that below.
What Gives an NFT Value?
The value of an NFT is driven by consumer interest. Similar to trading cards, their value is significantly influenced by their rarity and the pool of potential buyers.
There is no restriction that precludes the copying or sharing of an image, even though it can be turned into an NFT. However, ownership of NFTs cannot be faked because the blockchain stores and clearly identifies who owns the asset. One of the main factors in the worth of something is the exhilarating sensation of having exclusive ownership. Reselling is typically how people make money and increase the value of their NFT.
Create and Sell NFTs
Do you see yourself as an artist? Do you intend to sell any of your creations? You can make extra money by selling your creations as NFTs.
Almost anything digital can be created and sold as NFTs. In the past, original audio samples, movies, memes, songs, digital artwork, and many other things have sold for astronomical sums of money. A New Yorker called his farts NFT and sold them!
Go ahead and carry it out. The only restriction on how you can make money with NFTs is your own creativity.
How to make an NFT?
How to create non-fungible tokens and make money off of them is an issue that NFT enthusiasts, developers, and businesspeople have pondered over the years. Remember that non-fungible tokens have characteristics that are specific to them before we continue on to how to build NFTs. The process of creating NFTs is called “Minting”.
The steps that must be taken to create NFT are as follows:
- Make sure you know what you’re getting into and understand what a non-fungible token is before attempting to produce or even sell an NFT.
- Decide where you want to create and sell after doing some research on NFT platforms and markets.
- Connect and configure the cryptocurrency wallet after that.
- Create your first non-fungible token and start listing it on the platform of your choice.
Popular NFT Platforms and Marketplaces
The most common method of making money with NFTs is to sell them on online markets specifically for NFTs. There are numerous online markets and platforms available now where you may make, list, buy, and trade NFTs, including:
A revolutionary decentralized marketplace for purchasing and selling NFTs is called OpenSea. NFTs, or Non-Fungible Tokens, are distinctive, collectible digital items like in-game items, avatars, trading cards, and artwork.
OpenSea reported NFT trading volume of more than $3.5 billion in just August 2021. Given that its total volume for 2020 was only $21 million, it is safe to state that the increase in trading activity of 12,000% clearly indicates success.
OpenSea’s valuation has increased to over $1 billion thanks to investors like Mark Cuban, Kevin Durant, Ashton Kutcher, and crypto juggernaut a16z, almost overnight making the nascent NFT platform a unicorn.
On NFT markets, users can manufacture, sell, distribute, purchase, and trade digital goods for cryptocurrency using the Mintable platform, which was created on top of Ethereum. The platform is notable as being a top-notch NFT entry platform. In addition to being simple to use, it is ideal for novices.
Mintable is a website where users may mint, buy, and sell NFTs. It was founded in 2018 by Zach Burks. It’s safe to say that you now know how it got its name. Minting is the procedure for confirming data on a blockchain.
NFTs, for those of you who don’t know what they are, are a form of cryptographic token whose value is tied to actual things like artwork, music, films, and in-game stuff. Non-fungible token is abbreviated as NFT. Unlike cryptocurrencies, NFTs have distinctive characteristics that set them apart from one another.
SuperRare is a niche cryptocurrency art marketplace where non-fungible tokens can be purchased and sold (NFTs). SuperRare bills itself as “Instagram meets Christie’s,” listing a selected selection of digital artwork created by well-known NFT artists and up-and-coming producers. Its emphasis on quality over quantity has given SuperRare a rather upscale reputation within the NFT platform area.
In general, SuperRare’s NFT marketplace does not list NFTs linked to digital game assets, domains, or music because it is focused on art-oriented NFTs and was launched in 2018. From psychedelic and conceptual art to photorealistic graphics, it contains works that cover a wide range of artistic genres. SuperRare began as a high-end art gallery that only featured exclusive NFT collections from well-known artists that had been approved by its core team.
However, in 2021, the platform introduced its RARE token to simplify platform governance, transforming into a decentralized autonomous organization (DAO) led by its community of creators and collectors. Several well-known investors in SuperRare include Samsung Next, Mark Cuban, and Ashton Kutcher.
Using non-fungible tokens, the Ethereum-based platform Rarible makes it easier to create, sell, and buy ownership rights to digital works of art (NFTs). Unique crypto assets called NFTs are used to represent distinctive goods like collectibles and original works of art. Two NFT token standards are used by Rarible: ERC-721, which permits the creation of one-of-a-kind goods, and ERC-1155, which permits the creation of numerous versions of a single item.
Despite the fact that the NFT platform for Rarible was initially centralized, its developers intend to gradually decentralize it over time in order to hand over authority to a decentralized autonomous organization (DAO) that will be governed by the Rarible community.
Rarible intends to accomplish this with the use of its RARI governance token, which grants users the ability to take part in the platform’s governance. Rarible declared that it would open a market in 2021 on the Flow blockchain from Dapper Labs, which is intended to house applications and speed up transactions.
One of the most well-known and valuable collections of non-fungible tokens (NFTs) in the cryptocurrency business is called CryptoPunks. On the Ethereum blockchain, CryptoPunks were introduced in 2017 and are characterized by the cyberpunk and London punk genres.
Many CryptoPunks have been auctioned off for millions of dollars after maturing over several years. In addition to a well-known notoriety, the collection is reportedly just 10,000 punks strong. One of the first tokenized collections that launched the ERC-721 standard for NFTs was CryptoPunks.
Cryptopunks, a collection of 10,000 distinct non-fungible token (NFT) avatars, and Meebits, a collection of 20,000 generated, unique 3D NFT characters, were both produced by Larva Labs.
7. Axie Marketplace
Axie Infinity, a blockchain-based gaming metaverse created by Sky Mavis, allows users to breed and collect virtual creatures called Axies that may be used to compete in turn-based card games. As ERC-721 non-fungible tokens (NFTs), axes are one-of-a-kind digital assets with distinctive characteristics. Play-to-earn opportunities are prominently featured in the Axie Infinity game, and according to Sky Maven, this design has drawn a large international user base who profit significantly from the metaverse.
Axie Infinity’s alpha version was released by Sky Mavis in 2019. For its native ERC-20 governance token, Axie Infinity Shards, it held a token sale on Binance Launchpad in 2020. (AXS). A private token sale for strategic investors in the middle of 2020 came before this. The Axie Infinity community will eventually be able to control the metaverse because to Sky Mavis’s use of AXS as a gradual decentralization method, with membership in governance determined by an individual’s or group’s AXS token holdings.
How to Make Money with NFTs?
1. Create and Sell NFTs
Making and selling NFTs is the most straightforward and efficient way to profit from them. Any digital work, including artwork, photos, movies, memes, properties, etc., can be created and sold using NFTs. If you have a certain level of inventiveness, you can sell all of your works as NFT to get money.
Using sites like Appy Pie, you may construct and sell your own NFT collection and profit from your digital assets. Additionally, you can improve your income by listing your NFTs on other marketplaces like OpenSea, Rarible, etc. for a modest charge.
So unleash your creativity, produce fantastic NFTs, or convert your current digital works into NFTs with Appy Pie’s NFT generator, and then sell them for whatever price you like.
2. Rent Out NFTs
Renting out NFTs is one of the finest methods to make money with them. For those that create and collect NFTs, renting them out might be a lucrative passive revenue source. The intriguing part is that you don’t have to make new NFTs; you may use the existing ones for a long time.
In games or on any other platform that lets users borrow NFT cards, you can rent out your NFTs. You may even rent or lend NFTs to other people via websites like reNFT.
There’s nothing to worry about—all of the NFTs that you rent are governed by smart contracts, but the NFT owner has the right to choose the length of the rental agreement and the NFT’s lease price.
3. NFT Gaming
One of the well-known ways to earn money using NFTs is through video games. In some games, you may buy in-game things with NFTs and trade them to other players to make money. However, for the time being, they are few.
Without a doubt, given the buzz around NFTs, you will soon see an increase in the number of games that support NFT trading.
In-game NFTs are expected to expand in the future for another reason: they are much more sophisticated than basic digital trade cards or even more involved NFTs like virtual artwork.
4. Trade NFTs
Trading NFTs is a clever and simple technique to earn money quickly and effectively. An NFT collection is something you can buy and then sell for more money.
NFT trading is a challenging endeavor, nevertheless. The key is in timing the sale, which is directly influenced by the nature of the NFT, your motivation for purchasing it, and whether or not there is any other interest in the product. To find these elements, you can rapidly explore the internet and various markets.
You should be aware that not all NFTs are made equal before you start trading them. While some are almost worthless, others are worth millions. As a result, as a trader, you must keep a close eye on every opportunity to profit from future resale.
5. NFT Royalties
It’s a terrific method to guarantee a steady stream of money to set up a royalty on your NFTs. You can make money through NFT royalties each time your NFT is sold on the secondary market, so even after you sell your works to collectors, you will continue to make money.
You will get 10% of the entire sale price each time your digital asset is sold to a new owner, for example, if you put a 10% royalty on your NFTs.
What’s more, because the entire process is automated, you won’t have to enforce your royalty terms or manually track payment. Set the royalties and profit every time someone buys your NFT.
6. Stake NFTs
Staking NFTs is another another tried and true method of profiting from NFTs. Staking NFTs entails depositing, or “locking away,” digital assets in a De-Fi protocol smart contract in order to earn a return.
Staking is the act of saving digital works in the form of a “stake” and assigning them to those willing to maintain their upkeep, while paying you with a portion of the return for your NFT.
You can stake your NFTs and earn passive revenue by using platforms such as Kira Network, Splinterleads, Only1, and NFTX.
7. Licensed Collectibles
Convert physical collectibles to NFTs, sell them, and you’ll be making money in no time. Yes, you may securely store tangible collectibles as digital assets on the blockchain and sell them for the same or better price.
Sports cards have been the most popular sort of licensed NFT collectible so far. However, brands are gradually embracing the NFT bandwagon with their licensed collections in order to capitalize on it.
NBA is one such brand, having recently launched its NFT card set on the market. Given the current craze, now is the moment to convert your tangible items into NFTs and sell them.
What Is the Future of NFTs?
Like most blockchain experiments, the future of this one is unknown. According to credible journals, NFTs do not look to be going away anytime soon. It’s possible that they’ll become more common now that wealthy investors are investing money into them.
This might be the next big thing in music sales, with the opportunity to sell the right to utilize assets without giving up ownership. Whatever innovation you have has the potential to be valuable in order to join the market with the least level of risk.
NFTs can include game sprites, recorded music, images, prominent accounts on various sites and forums, and pretty much anything else you can think of. With its expanding breadth and market, the future will most certainly bring various other opportunities to profit from NFTs.