What are NFTs?
NFTs stands for Non-Fungible Tokens. These are unique digital assets stored on a blockchain. They represent ownership of items like art, music, videos and virtual goods. This makes them rare and non-interchangeable. Now that you know what NFTs are, its time to learn How to Make Money with NFTs.
1. Create and Sell NFTs.
One of the easiest ways to make money with NFTs is by creating them and selling them. This makes you the biggest beneficiary of the NFT. The other day, just after Donald Trump was sworn in as president of US, he released his NFT and made a lot of money. The NFT called Trump Coin value went up by billions.
If you’re an artist, musician or content creator, you can create Art & Digital Collectibles. You can can mint your work as NFTs and sell them. Some of the platforms you can sell on are OpenSea, Rarible or Foundation.
You can also use photography and videos to make money with NFTs. You can make unique, high-quality visual content and sell as NFTs.
Another way to make money with NFTs is by making gaming assets. If you develop games, you can sell in-game assets as NFTs. Some of these assets include skins, characters, weapons, etc.
In addition to that, you can make music & Audio and sell as NFTs. Musicians can sell exclusive tracks, albums or even concert tickets as NFTs.
2. Buy and Flip NFTs.
Other than creating and selling NFTs is by buying and selling them at a higher price. Flipping means acquiring the NFT at a lower price or even for free and then sell it at a higher price. Hence you make money because of that.
To do this, you can find Undervalued NFTs then resell them. Research upcoming projects and find our some of these undervalued NFTs. Buy them at a low price before they gain popularity. Then when the value goes up, its time to sell.
Sell for Profit. Once the demand increases, sell the NFTs at a higher price.
Monitor Marketplaces so that you can keep an eye on these NFTs. To help you, you can follow platforms like OpenSea, LooksRare, or Blur to spot trends.
3. Invest in NFT Projects & Brands.
Other than the buying and selling that we have discussed above, there other ways to make money with NFTs. Such include investing in NFTs.
You can invest in Blue-Chip NFTs. Some of the projects like Bored Ape Yacht Club (BAYC) or CryptoPunks often hold value. Moreover, this value goes up over time. Hence when you buy them, you can be sure that your value will keep going up. This means that once you put your money into it it will keep increasing.
To stay on top of this you can research Upcoming Collections. To help you with your research, you can join Discord groups. You can also follow NFT influencers to find promising projects early.
4. Earn Royalties on Resales.
You can also make a lot of money through royalties. Loyalties is whereby you make money for every sale of a product that you own or created. Even if you are not the one who sold it, as long as you hold those rights, you will always make money for their sales.
You can set up smart contracts to receive a percentage of every resale of your NFTs. When someone sells your NFT, you automatically earn a royalty. Typically this royalty is 5-10% of the total value of the NFT.
This is one of the best ways to make money with passive income. Like we have mentioned above you do not have to be the one selling the NFT. You just need to own it or own the rights. Once your NFTs gain value, you continue earning without additional work.
If you want to do this, some of the platforms supporting royalties are OpenSea, Rarible, Foundation and LooksRare. They allow creators to set royalties.
Tip: Choose platforms that enforce royalty payments. This is because some marketplaces have removed them.
5. Stake NFTs for Passive Income.
In addition to the point 4 above that teaches you how you can make a passive income with NFTs, you can also stake them. You can hold/lock up your NFTs and get the rewards.
Some NFT projects allow holders to stake (lock up) their NFTs in return for rewards. This is usually in cryptocurrency or additional NFTs.
Some of the staking rewards you can get are:
- Governance Tokens. Earn voting power in DAO-based NFT projects.
- Yield Farming. Some NFTs generate tokens that can be sold for profit.
- In-Game Rewards. Games like Illuvium and Axie Infinity offer staking options.
Some of the places to Stake NFTs are NFTX, Aavegotchi and Splinterlands.
6. Play-to-Earn (P2E) Games.
With NFTs, you can even earn money with games. Blockchain-based games allow players to earn real money through in-game NFTs, tokens or rewards.
Some of the ways to Make Money in P2E Games are:
- Selling In-Game NFTs. Items, characters, skins, as well as weapons can be sold for profit.
- Competing in Tournaments. Games like Gods Unchained and Axie Infinity offer crypto rewards.
- Earning Tokens. Games like The Sandbox reward players with native tokens ($SAND).
- Breeding & Trading. Some games like Axie Infinity allow breeding new NFTs for resale.
Some of the popular P2E Games are Decentraland, The Sandbox, Axie Infinity, Illuvium and Gods Unchained.
7. Rent Out NFTs.
In addition to all the methods we have discussed above, you can also make money with nfts by renting them out. If you own valuable NFTs, you can rent them out for income. This is instead of selling them which would mean you loose the NFT.
Some of the types of NFTs that can be rented are:
- Virtual Real Estate. Platforms like Decentraland and The Sandbox allow renting digital land.
- Gaming NFTs. Some P2E games allow players to rent powerful characters or items.
- Exclusive Access NFTs. NFTs that grant access to events, communities or perks can be leased.
If you are looking for where to rent NFTs, you can try the following platforms:
- ReNFT. A lending platform for renting NFTs.
- IQ Protocol. Offers NFT rentals without requiring collateral.
Tip: Choose reputable platforms to avoid fraud when renting out NFTs.
8. Launch an NFT Collection or Business.
If you have some capital to spare and you are interested in business, you too can use NFTs. You can start your own NFT collection. To make it stand out, you can have a unique theme, utility or community incentives.
You can also build an NFT-based business offering consulting or marketing. You can also offer NFTs development services.
Conclusion.
Now you know How to Make Money with NFTs.
To succeed in making money with NFTs, Do Your Research (DYOR). Avoid scams and rug pulls by verifying teams and roadmaps.
You will also need to engage with the community. Follow NFT Twitter, Discord groups and NFT influencers.
Finally, watch market trends to stay ahead. Keep an eye on demand, price fluctuations and new use cases.
