Non-fungible tokens do not seem to be just a trend that will easily pass. Along with blockchain and crypto, NFTs have already bloomed in many areas, such as digital art, music, online gaming, and sports. You may have heard about the power of NFTs that have enabled creators and collectors to gain profit for thousands and even millions of dollars.
If you're wondering how to make money with NFTs, there are several ways to succeed. In this article, we’ll provide you with the best existing strategies to try out, thus encouraging you to find the one that fits the best.
#1 Minting your own NFTs
The most common practice of making money with NFTs is to actually mint your own tokens. Minting or tokenizing refers to the act of creating or producing an NFT. It’s the process where you take a digital asset (whether it is art, animated GIF, or video) and turn it into a digital token on the blockchain. You do not have to be an artist or have the technical knowledge to make an NFT. We actually have a guide for you on how to mint an NFT.
Since anything digital can be an NFT, you only need an original idea and the canvas. You can choose from a number of formats and in fact, there are websites and tools that can help you. As the trend nowadays is surreal art, animals, and memes you may want to go with these or turn to a completely different direction. Nevertheless, you do need to create value with the message of your NFT.
After the asset is created and minted on the blockchain, it may be exchanged on a variety of different NFT marketplaces. This is where marketing comes into play since most NFTs or their collections will go unnoticed by potential investors unless they are actively advertised. This allows you to monetize your work and profit from it (minus some gas fees of the selected marketplace). Although we do know that this is not the easiest way, you can definitely try it out.
#2 Receive royalties
During the minting, the creator can indicate their own royalty percentage, which ensures that any secondary sales will profit (and as a result compensate) the original creator. Even after the digital work has been sold to someone else, you will still receive a percentage of the sale. The majority of NFT royalties are set at 5% or 10%, while some actually go higher. This process is fully automated and governed by smart contracts.
|! Smart contracts are self-executing computer programs that control and document contractual agreements for you.|
#3 Investing in promising new projects
Not so long ago it was taught that only crazy people can believe and invest in something that is not tangible or available at hand. But now, the buzz of NFTs continuously proves that it is an easy investment option and also a great way to acquire unique digital artwork.
Certainly, it is better to invest in promising new creators and their artwork early, before they go viral and rise in value. Many NFTs had their value increasing exponentially in the months after the launch/drop. Early investors are the ones that do best from their investments since they buy the assets for lower costs and can then sell them for a higher price. Additionally, early investors can take credit for being prime supporters of the artist and seeing their relevance beforehand.
Whether you are in the market to find a collectible sports card, catchy music track, or are captivated by a one-of-a-kind animation, investing in such projects may be worthwhile. It is a tricky and challenging way to make money because you need to have a good eye for NFTs, be keen on analyzing trends, as well as put a lot of faith into the projects to succeed in the future.
#4 Rent out
NFTs stand out because they cannot be duplicated and are completely unique – there’s no other collection of data like it. But that doesn’t mean that the owner of a particular NFT cannot rent it to others.
Renting an NFT implies lending it to someone else for a certain period of time. Just the same as with leasing real estate property, and collecting rent each month. It is an easy way to make money without having to give up the ownership of an NFT.
Some card trading games, for example, enable players to borrow NFT cards to increase their chances of winning. Smart contracts manage the conditions of the arrangement between the two parties involved. As a result, players often have the opportunity to choose their chosen period of the rental agreement and NFTs lease rate.
Another way to make a profit from NFTs, rather than selling them, is trading. Investors interested in NFT trading will frequently buy and sell an NFT for a modest price before repeating the procedure. If you have a collection of NFTs that you no longer need, you can easily sell them just like you would if you had produced them yourself. Only the minting procedure will be skipped.
This method is primarily focused on achieving little, long-term capital gains than on getting in and out of the market as rapidly as possible. When it comes to trading NFTs, however, understanding when to sell is essential. Making money from NFTs through trading may appear dangerous to some, but the payout might be well worth it.
Some people tend to purchase NFTs just for the sake of them increasing in value and then reselling it. This is called flipping – the practice of low purchasing and high selling, either short or long term. Hence, flipping is almost the same as trading, and it is one of the most common strategies to make money from NFTs.
There are a number of examples where NFTs were flipped at least 100 times their original price. However, people that operate with this method typically seek short-term earnings. It does result in generating a positive return, however, a cautious examination of NFT trends is essential before diving into it.
#7 NFT Gaming rewards
Crypto games are taking shape as the blockchain helps to turn them from play-to-win concept to the concept of play-to-earn. This means that players can receive rewards by participating and elevating their skills in the game. Usually, these rewards are represented by the platform’s native token, which can then be spent to acquire extra assets or skills within the game or be exchanged for FIAT currency.
However, there is some budget you would need to spend in order to enter, depending on the game. Some games require you to own at least 3 characters or just pay an entry fee to join the ecosystem of the game. Nevertheless, these games have functions that allow making, buying, selling, or trading the NFTs. And you can do it all simply via a mobile phone. Some of the existing games both for Android and iOS are Axie Infinity, Farmers World, Decentraland, Reward Hunters and many more.
The potential of the NFT gaming industry is enormous, as more and more games are presented in the market constantly. Therefore, NFT gaming can definitely be considered a profitable and fun side hustle or a source of passive income.
Another approach through which you can earn good money is staking. Staking can be thought of as another way of investing. It is a mechanism that incentivizes users to lock up their NFT in an external staking contract. Then it provides a utility token to be rewarded for staking.
This means that instead of an NFT being in your possession, you stake it in a holding account. You still own it but earn a piece of the validation reward in exchange for joining the staking pool. However, when the NFT is staked, it is no longer a liquid asset and can’t be listed on the secondary marketplaces – it’s locked up. As more NFTs are staked, there are less NFTs available to purchase on secondary markets, increasing demand and reducing supply.
NFT technology enables individuals from all over the globe to purchase and sell assets online safely. With its numerous and unique applications, it looks like only a small part of this technology has been explored and more potential development is just around the corner. With careful consideration, studying, and thorough planning, it is definitely possible to make money with NFTs. We hope that you will find a way that is the most convenient for you to get started.
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