NFTs gained extreme popularity not only in the crypto world but also in normal people’s lives. The moment NFTs started booming the internet world was in 2020, people wanted to know more about what’s in it for them.
Plenty of early investors and creators gained huge sums of money through NFTs. This was when people wanted to find out how to make money with NFT and get their feet wet in this new trend.
You don’t need to worry if you haven’t been a part of the NFT world yet. There’s still a huge potential in the NFT market that you can benefit from as people start understanding the value of digital assets.
Here, you will know more about NFTs and find some pretty handy ways to make money through them.
NFTs (Non-Fungible Tokens) are nothing but digital assets. If you are good with investments, then you will be able to generate some money out of these digital assets too. The price of any NFT is dependent on supply and demand. So, you can surely earn better by buying low and selling high.
This is a strategy that every investor follows to earn something better out of their investments. People often wonder how to make money with NFTs as a beginner because they don’t know about any proper strategy for the same. Here, we are going to talk about 8 different strategies that can help you earn money with NFTs.
Due to the significant boom in the NFT market, there are plenty of active and passive ways to earn money with NFTs. Some projects are even coming up with NFT giveaways so that they can interest more people in the world of NFTs.
To make it easy for you to get into the world of NFTs and also earn handsome profits through your investments, here are 8 strategies to make money with NFTs.
If you are creative enough, then you can consider creating some digital assets and selling them as NFTs in the market. Here, you will have to mint your own digital asset like digital art, music, video, or anything and place it on the blockchain. Once you mint your NFT and add it to the blockchain, you can sell it as NFT on NFT marketplaces.
For creating and selling NFTs, you first need to have possession of any NFT like video, meme, document, music, art, etc. You will also need access to a digital wallet like MetaMask because you will have to pay minting fees from your wallet.
The minting cost is low, and it will vary based on the blockchain network, so you and plenty of other people will create and sell their NFTs online. You have to select a marketplace where you wish to list your NFT collection for sale.
There is no specific amount that you can earn by creating and selling NFTs. This will completely depend upon your NFT and, more importantly, on how much hype you can create for your NFT collection in the market.
Several NFTs have been sold for millions of dollars, while some are sold only for a few bucks.
The process of “Flipping” is all about buying NFTs at a low price and selling them at a high price. This strategy is a bit different than the HODL strategy because you will be involved only for a short time.
The most difficult task is identifying the NFT collection you can flip and earn from. You need to consider a few factors to find the right NFTs for flipping. Among those factors, the token’s utility comes at the top. If there is great utility in a particular token, more investors would be ready to purchase it.
Other than that, you also need to consider the community and development team behind the entire project. The visuals will also play a significant role over here because that’s where investors create the hype in the market.
HODLing stands for ‘Hold On for Dear Life.’ NFT HODLing is surely the best strategy to rely on when you are researching how to make money with NFTs as a beginner.
This is an investment strategy where you don’t sell your NFTs or assets, no matter what happens. There are both pros and cons to this strategy, but if you have researched well, then you will be able to reap benefits from your investments. Back in 2017, the investors of CryptoPunks could have sold their NFTs as the prices weren’t going up. The ones that chose HODL were able to gain huge profits in 2021.
This approach won’t work on every NFT collection in the market. You must conduct thorough research to find worthy projects to invest in and HODL. Before investing in any NFT project, you need to perform thorough research to know about the developer team, the community behind the project, the utilities being used in the project, and also the investors or companies backing the project.
Your money might end up being lost if the NFT project turns out to be a dead one over time. If the project is not able to maintain the hype in the market, then it won’t be able to sustain itself in the NFT world. For this reason, we advise you to take profit when you think it is necessary to. Don’t go broke holding on to your bag.
Another excellent approach to earning money from NFTs is to start with play-to-earn (P2E) games. Such games allow the players to earn crypto for achieving different objectives or even for playing the game regularly. The rewards that you earn over here can be exchanged for either in-game items or FIAT currency.
These NFTs act as in-game collectibles. You can potentially sell the NFT to someone as they are registered on the blockchain. If you are able to find some extremely popular and rare item from any P2E game, then you can sell it at a good price and make a significant sum of money from it.
Usually, these NFTs are game-specific. So, if any game loses its popularity, then the value of NFTs will also go down.
Axie Infinity is a pretty successful P2E game in the NFT world that gained huge popularity. Here, you get to battle other users and earn rewards as NFTs. Because of Axie Infinity, several other P2E projects like Decentraland, The Sandbox, and others also started booming in the market.
Another excellent way to earn some good money from NFTs is to rent them out. This can be the best way to earn some passive income for every NFT creator and collector. Even though you don’t create new NFTs very often, you can use the same NFTs for a long by renting them out.
NFT rentals are possible through platforms or games where it is allowed for the users to borrow NFTs. Every NFT that you rent out is managed through smart contracts, so there’s nothing to worry about. The NFT owner can set privileges and set the agreement as per their convenience.
NFT rentals are similar to renting out any property or real estate in the real world. The best thing about NFT rentals is that you can earn some passive income without losing ownership of the NFT.
When NFTs are combined with the Decentralized Finance (DeFi) protocol, staking benefits investors, creators, and collectors. Staking is the method to lock away your digital assets like NFTs or crypto into a DeFi protocol for generating yield.
If you are wondering about how to make money with NFT, then this is an optimal option for you to consider. Usually, the rewards of staking NFTs are in the form of the platform’s native tokens. The value of these tokens will depend majorly on their utility and popularity in the market. So, you need to understand that the value of earnings from NFT staking can vary a lot because of the market conditions for the native token.
Certain platforms might ask you to purchase native NFTs for staking them. On the other hand, some platforms will allow you to stake any NFT for gaining incentives in the form of native tokens.
NFT Royalties is the best method for maintaining a consistent flow of income by your side. Even if you sell your NFT, you can keep on earning money whenever the NFT is sold to anyone in the market.
For instance, if you set up a royalty of 5% on your NFT, then you will receive 5% of the total selling price each time your NFT is resold to some new owner. Another excellent thing over here is that the entire process is automated, so you don’t have to manage anything or keep any tracks of the same.
The creators can earn passively by setting royalties for their NFTs to never stop the income flow. The only thing a creator needs to ensure is that their NFT collection is worth investing in to make the most out of the NFT Royalties process.
Currently, there are very few companies with exposure to the NFT market. Among them, Dapper Labs, Rarible, Verisart, Nifty’s, and more are expanding themselves in the NFT world. You need to understand that you are not only investing in NFTs or their popularity, but you are also investing in the company’s fundamentals, management, and other aspects.
There are multiple ways to invest in any upcoming NFT startup. The most basic ways are to invest in NFT marketplaces where you get to invest in both existing and upcoming NFT projects, take part in public sales, or even mint new NFTs. Other than that, a few other ways are to invest in marketplace tokens, marketplace stocks, NFT stocks, NFT metaverse land, NFT fractional funds, and even the blockchain technology behind the NFT project.
As NFTs are expanding in various industries, they have a huge potential to transform the digital world. This is why investing in early-stage NFT startups or companies can benefit you to a huge extent.
This guide covers everything about how to make money with NFTs as a beginner to help you step into the NFTs world and have a profitable approach. As the craze of NFTs doesn’t seem to slow down at any point in the near future, this is the right time to get in the market and reap some benefits.
1. What kind of NFTs sell best?
Digital artworks like photos, GIFs, and videos are the most popular and best-sold NFTs in the entire NFT market. Artists were very quick to capitalize their digital artworks into NFTs resulting in this boom.
2. Is it worth investing in NFT?
NFTs are tokenized digital assets that gained extreme popularity in the market. The best thing is that anyone can invest in NFTs, and they are highly profitable for everyone. There are no issues regarding ownership of NFTs; you can buy them at low prices and sell them for a high price to gain profits.
3. Can you make money from free NFTs?
There are several airdrops and free NFTs given out by NFT collectors to create hype in the market and drive the prices up. You can sell these NFTs in the marketplace to earn a good sum of money when the prices go up. Bored Ape Yacht Club distributed free NFTs in the beginning to gain popularity, and their NFTs have reached great value now.
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