How to Make Money with NFTs
Did you know that selling NFTs is not the only way to make money in the NFT space? There are many other options that can help you generate income with NFTs.
People from all over the world, famous celebrities, well-known brands and simply individuals are breaking into the NFT space to earn income. And not without a reason. The NFT market has grown from $162.4 million at the start of 2021 to $15 billion USD spent on buying NFTs.
Though, it’s not so easy to earn money with NFTs. While there are many million-dollar sales of NFTs, there are also NFTs with a very low price. Add to that high minting and listing fee and there you go. It can discourage any newbies from even trying to make an income with NFTs.
And here we are to encourage you and show that there are many other ways to make money from NFTs.
What are NFTs
You may have heard a lot about NFTs but don’t clearly understand what they are. So let’s quickly define them.
NFTs are non-fungible tokens, unique digital assets stored on the blockchain, where everyone can see and verify them. NFTs contain unique information that proves the ownership of certain items: artworks, music, different collectibles, game assets, and even physical items.
As each item is unique, NFTs can’t be traded the same way as bitcoin or any other cryptocurrency. If you exchange one bitcoin for another, nothing will change, you will get the same value. But two NFTs are never the same and you can’t exchange them like that.
NFTs doesn’t contain the item itself, they are just proof of ownership. So if you’re selling a digital image or any other digital file, anyone on the Internet can still copy and save it freely. But, the NFT shows that you’re the rightful owner of the original work and no one can argue that.
Thanks to NFTs, it is now possible to sell digital art and show who is the creator and the owner of any original artwork.
Ways to Make Money With NFTs
Enough with explanations, let’s see what options you have to generate income with NFTs.
Create and Sell NFTs
This is the most obvious way of course and one of the most beneficial. You’re probably here because you’ve heard a lot about many NFTs selling at several million dollars. These cases do not happen every day, but you have all the chances to sell your NFT at a high price. After all, no one has heard about Beeple before the sale of his work at $69 million.
Besides, the average NFT price is more than $2000, so you don’t need to sell your works at an extremely high price, you can benefit from the average price as well.
If you’re a creative person and you like creating works of art, music, videos and any other things, then this is a good chance for you. But even if you’re not, keep in mind that NFTs can be anything even a tweet, or domain name.
Well, if you want to create and sell NFTs, then I’d suggest you explore the NFT marketplaces. There are all kinds of marketplaces, highly curated art galleries like SuperRare, KnownOrigin or AsyncArt, sports marketplaces like NBA TopShot, open marketplaces that offer all kinds of NFTs like OpenSea and even marketplaces specialized in metaverse and gaming such as Decentraland and Axie Infinity.
As you see, there are tons of options to choose from.
P.S. You just need to know that before listing your item as NFT you have to pay minting fees. But as long as you have high-quality, unique works you have all the chances to sell your works with a profit.
Trade art NFTs
If you don’t want to create anything, you can simply trade NFTs. This way you won’t even have to pay minting fees, you’ll become a collector.
Though note that, this option requires constant research and a lot of work. You need to know when is the right time to buy a certain NFT or NFT collection and when is the right time to sell it. And you need to understand which NFTs have more chances to become more valuable.
An art collector Pablo Rodriguez-Fraile bought Beeple’s 10-second video clip for $66.666.66 and then sold it for $6.6 million. This is a great example of selling the right item at the right time at the right place.
So you need to know all about NFTs, famous and not-so-famous artists, etc. Also, you need to choose a niche of items you want to collect. Explore the market and choose what you want to collect. Try to always keep your eyes open for potentially successful NFTs and artists.
Set Royalties for Your NFTs
As you do research on marketplaces, you will notice that many of them offer the option to set royalties for your works so that whenever they are resold, you receive a percentage from the sale. This is a great way to receive a passive income. And besides the selling price, you can receive a stable income after your works are sold.
The best thing about NFT royalties is that the process is automated and you don’t need to track your work or the payment. Whenever your NFT is resold, you will automatically receive the royalty you set during the minting process.
Trade Licensed Collectibles
Collecting doesn’t only refer to artworks, it refers to other NFTs as well. Trading cards are a great example of licensed collectibles. They are quite successful as physical trading cards, but digital ones can be even more valuable thanks to the provable rarity of NFTs.
So far, sports trading cards have proved themselves quite successful. The famous NFT project NBA TopShot, which offers unique video shots of NBA players, has launched NFT trading cards. You can also find soccer players’ cards and many other licensed collectibles.
It’s also possible to turn your physical cards into NFTs. Physical items can be easily damaged, but NFTs never lose their value, especially the rare NFT cards.
This is the most fun way to make money – play NFT games. There are plenty of platforms now where you can play games of different genres. Some platforms like The Sandbox are building full metaverses where users can play games, trade digital real estate and create their own worlds.
On Axie Infinity, one of the most successful NFT game projects users can buy the game characters – Axies, fight in battles and make their Axies more valuable. Then you can sell your character or continue playing and winning new NFTs.
The downside of this option is the necessity to buy game characters or game items before you start playing. Fortunately, there is a solution to this limitation. You can borrow in-game items, win with them and then split the earnings with the yield.
There are a lot of games out there so do some research and find the best game for you. As dynamic NFTs become more and more popular, we will certainly see more NFT game projects which will be even more interactive and fun. NFT games have all chances to become more popular and more profitable.
Rent In-Game NFTs
Besides borrowing NFT, you can perfectly rent them out. If you don’t want to play games, you can simply rent in-game NFTs, or trade them like the artworks.
It’s worth mentioning that NFTs are stored on the blockchain, so you can mint and trade on different marketplaces, or sell your game characters on secondary marketplaces. Like with the project CryptoKitties, where users can buy and breed digital cats, many of these cats can be found on other marketplaces.
Let’s get back to the process of renting. There are platforms like reNFT where you can easily lend your NFTs. But it’s not necessary to use these platforms. You can perfectly talk with the potential players on social channels like Discord and rent out your NFTs there.
This is another great way to earn some passive income. You won’t have to do anything, not even supervise the player. The process of renting is governed by smart contracts. You just set the lease rate and the duration of the rent and then enjoy receiving your earnings.
Invest in NFT Companies
This might not seem a very obvious way to make money with NFTs, but it could be quite profitable. Instead of trading items or playing games, you can simply invest in NFT companies.
NFT space is in its growing phase so new start-ups and companies are emerging every day. If you’re more into business and finance, this is a good option for you. Especially investigate the metaverse and gaming projects, there are many new projects out there.
Also, consider investing in blockchain projects overall. Many companies, in order to raise funds, launch an ICO – an initial coin offering and sell their tokens. The funds will then be used to build the project and investors can receive so much more than they invested.
Though this option also requires quite a lot of research and an understanding of how start-ups work. And you need to be able to find projects that will later become successful.
NFTs can be quite profitable for everyone. Though it’s hard to predict what will happen to them in the future and how the market will change, we can say that NFTs are not just a trend and they have all the potential to stay for long years.
I hope this article helped you learn more about NFTs and more importantly encouraged you to try and generate income with them.
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