NFTs are in fashion today. Prominent gaming companies, such as Epic Games, have decided to invest in this type of blockchain technology, predicting a profitable future. The data tells us that earning money by trading these virtual objects is kind of easy. But is it true? Can beginners really earn on NFTs?
If you are interested in learning How to Make Money with NFTs, keep reading and discover everything about this phenomenon.
Table of Contents:
- What are NFTs?
- Create and Sell NFTs
- Renting Out NFT
- Flipping NFTs
- Trade NFTs
- NFT Staking
- NFT Gaming
- Play-to-Earn NFT Games
- NFTs Royalties
- Pricing Your NFTs on an NFT Marketplace
- How to Make Money with NFT, Final Thoughts
What are NFTs?
Non-fungible tokens, also known as NFTs, are digital assets that exist on the blockchain and that cannot be duplicated or changed. From a certain point of view, NFTs are unique and unrepeatable digital art pieces.
Trading NFTs and selling NFTs are possible in legal marketplaces for cryptocurrencies or fiat. In short, these tokens are the digital equivalent of artwork in a private collection.
NTFs are generally generated for collections, but not all NFTs in the collections are equal. However, each artwork in the collection is unique and has a distinct price. What’s more, since each piece of these digital assets has an original owner, NFTs work as proof of ownership of the work.
Furthermore, every photo, image, tweet, post, even game sprites, memes, or videos, can be turned into an NFT, so the possibilities are endless. Thanks to NFTs, all your artistic ideas can be on sale in a matter of minutes!
Nowadays, NFTs are restricted – by most creators – to the art and gaming realm, but the field is rapidly expanding to other areas. That said, making money with NFTs is easier every day, although it requires expert knowledge.
The token’s asset transfer is recorded in the blockchain, just like the cryptocurrency Ethereum (ETH), which always yields a great positive return on investment.
One of the first NFT sales to make the news was Twitter CEO Jack Dorsey selling his first ever tweet as an NFT. As the proceeds were to be donated to charity, the NFT ended up going for $2,500,000.
Create and Sell NFTs
NFTs are art pieces since they have creators – digital artists – who spend time and effort creating these digital goods. That said, you can create your own NFTs if you are talented and skilled enough to manage the software. When your artwork is ready, you can list it in an NFT market. Selling your NFT involves paying a small transaction fee, depending on your platform of choice.
Keep in mind that non-fungible tokens are unique and cannot be duplicated. Users have to keep that in mind when they create their first NFT. Upon finishing, likely, the subsequent ones come easily. When you create NFTs, the basics are the following:
- Create an NFT collection. Earning money with your own NFTs involves firstly creating a hypothetical art collection of NFTs via the dropdown menu. Most best-seller digital tokens come in the form of digital collectibles.
- Click “New Item.” In this step, you upload your artwork. Of course, you first must select the platform of your preference. Later in the post, we mention the main websites you can choose. To upload your artwork, select “New Item” in the create dropdown menu. Most platforms work in this way.
- Create your own NFT. Upon finishing the latter steps, you’ll have the created digital file or piece of artwork. The only step that remains is to put this piece of art on the market.
NFT sales involve putting your NFT collections into the right platforms. You first need to invest in any digital currency on platforms, such as Ethereum. The fees you pay for the service are payable in cryptocurrency. Crypto can be paid by using the app of your preference, such as Binance, Apple Pay, credit card, and even debit card.
After all this process, NFT creators should start with the MINTING process.
Minting Your Digital Asset
Once you have created your digital assets, it’s time to mint them in a proof NFT marketplace. That is, take the piece of art and place it on the blockchain. To do this correctly, keep in mind the following pieces of advice:
- Before creating an NFT, make sure you understand what a non-fungible token is.
- Research NFT platforms and marketplaces and decide where you wish to create and sell.
- After that, connect the crypto wallet and set it up.
- Finally, build your first non-fungible token and list it on the platform of your choice. Keep in mind that sometimes you need a token pair to join a pool and account with the platform you’re going to use.
If you wonder how to know if your NFT sells, you’ll have to check the sales page for updated offers on the digital asset you’re selling. This is because most sites tend not to use email to communicate this.
Selecting Your NFT Platform or Marketplace
NFTs marketplaces are the sites where you sell your creations, but not all of them offer the same conditions and benefits. There are various sites where you can trade your NFTs. Some places where you can sell your in-game NFTs are the following.
OpenSea is a large NFT platform where NFT creators can create and sell their digital work. This marketplace offers you the possibility of trading in several categories, including collectibles, art, photography, music, and sports.
Mintable is a platform that allows you to easily mint your NFTs and set NFT’s price. Besides, you can use advertising to get eyes on your items and have a custom-designed store just for you. Mintable has a great 24/customer support service that will answer all your concerns.
As you can infer from the image, SuperRare is a platform focusing on trading NFTs. Here you can buy NFTs created by both world’s top and not-so-well-known artists. This platform works as a secondary market for artists who want to diversify their artwork and get passive income. If you want to earn rewards, and you have some talent for drawing, painting, or you’re an able graphic designer, this is the site you’re looking for.
Rarible is a friendly platform that allows you to use several cryptocurrencies to trade NFTs of different categories. Rarible pays special attention to communities. Each created community is unique and has its marketplace that heavily focuses on a relevant topic or aesthetic. Besides, Rarible commonly uploads notable articles about the crypto world, trading cards, and relevant info about trading NFTs.
How to Market Your NFT
Just like physical things, promoting and getting notice of digital assets is hard work. To get any potential profit and earn more money than you think, take a look at this step-by-step guide below.
- Use social media. Utilizing social media channels and Reddit to create threads is a good way to attract views to your digital content. Since NFT trading is a new concept, you’ll have to spend a lot of time teaching people what are and how to buy NFTs, and Facebook posts are great for that.
- Marketplace newsletters. Some marketplaces offer the possibility of publishing the release of your own NFTs. Each platform has its process regarding being listed in a newsletter, so we recommend you check the FAQ section.
- Word of mouth. Despite an NFT value depending on the relevance of the self-artwork, a good marketing strategy is via the word of mouth. Talking to family, friends, or team workers is a good way to share your NFT and make it known. Share the information on your social media with exclusive access or in your real-life social circles.
Renting Out NFT
Just like any other property, you can rent out NFTs to get passive income. This system works like you rent out a real estate property. The people who rent your NFT will give an amount of money agreed in advance for a period.
But why would anyone want to rent your NFT? There are several reasons. Sometimes, they just want to have a nice avatar for their games. On other occasions, they can use your NFT to attract users to their profiles or social media accounts. They can also use it for a kind of campaign. Ideas are endless!
When the rent time is over, you’ll receive back your property. This is an interesting way not to sell ownership and collect income.
Buying low and selling high is one of the basics of any inversion. In this type of trade, the cornerstone is to buy goods whose value may increase shortly. To do this, you need to have an excellent instinct and a deep knowledge of the subject for the prospects of making money in a future resale.
Flipping NFTs are not the exception to this rule. Since NFTs are tradeable, you can invest some money in buying a certain number of NFTs you believe will be in high demand in the future.
Anyway, the big difference between flipping and investing in regular ways, such as stocks, is that flipping is a short-term approach. Other strategies, such as the HOLD strategy, take longer to make a profit.
Finding the best alternatives to buy and sell NFTs in a short period and getting a good profit is a hard task. Competition in the NFT marketplaces is tough nowadays. Then, study the market and check the following:
- The utility of the digital asset.
- Community backing and the development behind the NFT.
- The visual appeal.
You can think of NFTs as stocks, and just like regular stocks in the market, you can freely trade them. In this sense, if you have a collection of NFTs, you may sell them at a higher price than the price you paid. This way, you’ll skip the minting process.
Nowadays, wealthy investors are pouring vast money into NFTs, and you can join them by purchasing and selling them. For instance, Pablo Rodriguez-Fraile, an art collector, flipped a Beeple digital art piece for 1,000 times its original price.
As a collector, you have to keep in mind that NFTs are not all created equal. Some NFTs may be worth millions of dollars and become a part of a revolutionary future, while others might turn out worthless.
Anyway, if you want to go through this trading system, knowing when to sell the NFTs in the blockchain auctions is fundamental. Yes, we know that trading NFTs may seem risky, but potential earnings might overgrow risks.
Staking NFTs is another profitable way of getting a reward for your NFT. Staking is about storing digital works as a “stake” and taking advantage of the decentralized finance (Defi) protocols. Then you assign your artworks to someone willing to maintain their upkeep. In exchange, you’ll receive a commission and earn interest, in some way.
Maybe you don’t know this, but NFTs is a cryptocurrency you can use to purchase in-game items in blockchain-based games. Currently, there are some very pricey collectibles, such as those you can find in the game CryptoKitties.
Nowadays, some promising NFTs startups are emerging, putting their efforts into creating games based on blockchain and NFTs. Gala Games and Mythical Games are two developers and NFT startups working on games where gamers can buy and sell digital tokens. Just keep in mind that since gamers can exchange NFTs freely, any transaction will be entirely their responsibility.
Play-to-Earn NFT Games
Another way to profit from this blockchain experiment is to start with the play-to-earn NFT games. These games currently integrate P2E features, which allow you to monetize your gaming experience by gaining rewards via skilled gameplay. Generally, these rewards can be exchanged for FIAT money or spent on in-game items.
Using NFT games as one of the best ways to make money has become very popular today since several platforms have been released in recent years. In simple terms, you’ll receive NFTs as rewards, which you can trade freely in different marketplaces on the network. If you’re lucky and know exactly what to do, you can trade your earned NFTs on a secondary marketplace and get a good profit.
Royalties are a great way to earn money as passive income when you easily sell an NFT, and then this piece of art is selling again. Any time the artwork will be sold, you’ll get a royalty percentage. During the timing process, you can set your royalty. This way, any marketplace will provide you with a payment.
The vast majority of pricey NFTs have royalty embedded into them. Not so expensive NFTs, or directly some cheap ones, can be embedded with royalties too.
Pricing Your NFTs on an NFT Marketplace
At this point in the article, you may wonder, how do I price my first NFT as a content creator? This is an important question that will help you to enter into smart contracts with marketplaces. Of course, you can set the price you want, but it’s relevant to set one according to supply and demand and the value of your artwork.
The average price of NFTs is around USD$150 and USD$900. The price can vary for different factors, such as the price appreciation or depreciation, and if there is any other interest or other investors in the item. Consumer interest drives the value of an NFT.
There’s no specific formula for pricing this type of digital investment. This process can be a bit tricky since the value of cryptocurrencies, such as the Ethereum blockchain or Bitcoin, fluctuates daily. Besides, you must consider the marketplace listing fees.
Below you will find some pieces of advice to set the prices of your creations:
- Be willing to experiment. Small businesses can experiment with gamification, allowing them to invest in other products related to their NFTs, such as t-shirts or physical copies of their artwork.
- Start low, but aim high. This is one of the gold investment rules or transactions in the crypto market. The best is to enter the NFT marketplace with your product at a reasonable price. Then track the behavior of your NFTs, the mainstream, and project the earnings it can generate. Do not be afraid to increase the price if things catch on.
How to Make Money with NFT, Final Thoughts
One of the most popular High Profile NFT sales that broke the Internet in recent years is the case of Chris Torres. Chris is the big fish behind the viral Nyan Cat clip and developed an NFT to sell ownership of the animation.
This is a good example of how you can invest in NFT, use the marketing, and then earn royalties or direct profit when you sell high. We know it is a long shot, but with talent and a smart eye, you can make much money with NFTs.
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