Are you looking to learn how to make money with NFTs? With our detailed guide, you will earn money from NFTs in no time!
After blowing away the internet in 2020, NFTs remain a significant trend everyone is gushing over.
You might have heard about how investors and creators have amassed vast sums of life-changing money through NFTs. However, figuring out how to make money from NFTs can be intimidating, especially with all the huge numbers being thrown around.
Earlier this year, the USD 69.3 million sale of Beeple’s NFT shook the internet and transformed people’s thoughts about digital collectibles.
Everyone is now rushing to get their feet wet to catch this wave. Don’t panic if you’ve been watching from the sidelines, unsure where to begin – the NFT cruise boat hasn’t sailed far yet.
This article will provide comprehensive insights on NFTs, including the process of creating them and various avenues through which you can generate income via NFTs.
How to Make Money with NFTs – Table of Contents
- What’s an NFT?
- What Gives an NFT Value?
- Create and Sell NFTs
- How to create NFTs?
- How to Make Money from NFTs?
- What Are Some Examples of High-Profile NFT Sales?
- What Is the Future of NFTs?
What’s an NFT?
NFT refers to a Non-fungible token. A non-fungible token is a digital asset that cannot be changed or duplicated. One way to think of these tokens is as a digital equivalent of artwork from a private collection. Each piece of art in the collection is one-of-a-kind and worth a distinct amount.
An NFT, like a piece of art, can be sold for cryptocurrency or fiat. However, just like Bitcoin, the token’s asset transfer is recorded in the blockchain. This establishes the ownership of a specific NFT.
Each NFT is linked to the original owner’s digital or, in some instances, physical asset. Technically, any digital object can be converted into an NFT. It just depends on the types of NFTs.
Anyone can turn famous tweets, Facebook posts, Instagram photos, and more into NFTs and sell them — that’s the beauty of NFTs.
You might be wondering why people are blowing ridiculous amounts of money on something intangible as NFTs.
Moreover, you might be curious about how individuals earn profits from NFTs. And are likely also wondering, how do people even earn money from NFTs, aren’t they just jpegs? Well, we’ll get into that below.
What Gives an NFT Value?
Consumer interest drives the value of an NFT, just as it does for works in our hypothetical art collection. The rarity and base of interested buyers are major factors that influence how much they are worth, just as they do with trading cards.
Although an image can be converted to an NFT, no prohibition prevents it from being copied or shared. However, the blockchain stores and clearly shows who owns the asset — ownership of NFTs can’t be faked.
The euphoric feeling of having exclusive ownership is one of the major drivers of its value. For the most part, the way people earn money and appreciate the value of their NFT is through resale.
See our guide to the latest NFT trends.
Create and Sell NFTs
Do you consider yourself a creator? Do you have any creations that you’d want to sell? Selling your work as NFT can help you earn more money.
You can develop and sell almost anything digital as NFTs. Original audio samples, films, memes, music, digital art, and much more have been sold for an enormous amount of money in the past. A New Yorker marketed his farts as NFT!
So go ahead and do it. When it comes to how to make money with NFTs, it’s only limited by your imagination.
See our guide on how to make and sell an NFT.
How to Make an NFT?
NFT enthusiasts, developers, and entrepreneurs, over the years, have asked the question, “How to build non-fungible tokens and monetize them”.
Before we proceed to how to create NFTs, bear in mind that non-fungible tokens have attributes that are unique to them. The process of creating NFTs is called “Minting”.
The following are the stages that must be followed if want to learn how to make money with NFT:
- Before attempting to create or even sell an NFT, ensure you know what you’re getting into and 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, begin building your first non-fungible token and list it on the platform of your choice.
Popular NFT Platforms and Marketplaces
The most popular way to generate money from NFTs is by selling them on NFT-dedicated marketplaces. Today, there are a variety of marketplaces and platforms where you can create, list, sell, and exchange NFTs including:
How to Make Money with NFTs?
1. Rent Out
NFTs (non-fungible tokens) are digital assets that can’t be copied. But do you know you can rent them out? The renting process isn’t any bit complicated, it works the same way you lease out a real estate property and collect rent.
Renting an NFT entails loaning it to someone for a set amount of time in exchange for money. Renting out is an effective way to earn money from NFTs without losing out on ownership.
Is it possible to earn royalties from something as intangible as NFT? Yes, you can.
The creator can earn passive lifelong royalties even after selling a digital asset to someone else. The creator, however, must impose these terms, and you will receive royalties for the rest of your life if someone buys the asset you developed.
For artists, royalties are an excellent choice for passive income. Although initially confusing, royalties are worth considering when earning money from NFTs.
See our NFT Marketing Guide.
3. Trade NFTs
Apart from selling NFTS, you can also trade them. Some entrepreneurs and investors treat NFTs like stocks, purchasing and selling them to make money.
If you currently possess a collection of NFTs you no longer need, you can easily sell them, just as you would if you had created them yourself. The minting process is the only step you’ll skip.
You can profitably invest in NFTs by purchasing and selling them. In less than six months, Miami-based art collector Pablo Rodriguez-Fraile flipped a Beeple digital art piece for nearly 1,000 times its original price! NFTs, on the other hand, are not all created equal.
Some are worth millions of dollars, while others are nearly worthless. As a collector, you must examine an item critically for the possibility of profiting from a future resale.
However, when it comes to trading NFTs, knowing when to sell is crucial. For many making money from NFTs through trading may seem risky, but the payoff can definitely be worth it.
See our guide on how to buy an NFT.
When is the Best Time to Sell an NFT?
It depends on the object, the reason for purchasing it, and whether or not there is any other interest in the item in question. You can find out by conducting a fast search on the internet and in the marketplace.
You’ll also need to take into consideration any price appreciation or depreciation. When evaluating your potential profit and loss, remember to account for additional expenses like petrol, marketplace listing fees, and royalties given to the original owner.
After all, is said and done, these expenses will reduce your take-home money.
If you are interested in more advanced NFT trading that needs a thorough understanding of the cryptocurrency sector, you should consult with a professional. Because NFTs are still in their infancy, you may be able to find someone to assist you through freelancer websites.
4. NFT Gaming
We live in an era in which it is possible to make money by participating in video games. NFTs are a type of cryptocurrency that can be used to purchase and exchange in-game items in blockchain-based games.
There are already some extremely pricey collectibles on the market, such as those found in the game CryptoKitties, which are quite difficult to come by.
The price of a single crypto cat has reached more than $300,000 in some cases. Increasingly games that make use of more inexpensive NFTs have recently been released.
Some companies even hand away free things to the first few sign-ups. With all the latest gaming NFTs, making money from NFTs with the proper knowledge is quite achievable.
5. Staking NFTs
The ability to stake NFTs is one of the advantages of the marriage of NFTs and decentralized finance (DeFi) protocols. Depositing, or “locking away,” digital assets into a DeFi protocol smart contract to create a yield is referred to as staking.
While some platforms allow you to use any NFT, others require you to buy native NFTs to gain staking token incentives (which are usually priced in the platform’s native utility token).
Examples of platforms that facilitate NFT staking include:
- Kira Network
Sometimes a portion of the advantages delivered to stakeholders is denominated in governance tokens, as is the case in some instances.
As a result of these protocols, token holders can influence how their ecosystems develop in the future. Staking NFTs yields coins that can be re-invested into other yield-generating protocols in the majority of cases.
Because of the ongoing integration of NFTs and DeFi infrastructures, it is now possible to contribute liquidity and get NFTs in exchange for establishing a position in a specific liquidity pool, allowing you to establish your position in a specific liquidity pool. Also, generally speaking, staking is a relatively stable way to earn money from NFTs.
For example, if you give liquidity on Uniswap V3, the automated market maker (AMM) will issue an ERC-721 token, also known as the LP-NFT token, which represents your portion of the total amount locked into the pool.
The NFT is additionally engraved with the token pair you inserted, the tokens’ insignia, and the pool’s address, among other things. You can sell this NFT to swiftly liquidate your liquidity pool stake.
6. Adopt NFT-Powered Yield Farming
AMMs driven by NFTs are now available for users to farm for yields, as NFTs are soon becoming a key component of AMMs in general.
Combining different DeFi protocols allows you to generate the highest possible yield from your digital assets. This is known as “return farming.”
To demonstrate how the LP-NFT tokens offered as liquidity provider tokens on Uniswap can be used as collateral or staked on other protocols to earn extra yields, we will utilize the example of the Uniswap platform.
Consider it an opportunity to earn an additional yield on top of the inherent yield generated by the NFT creation process itself.
With this possibility, a multi-tiered income-generation technique ideal for yield farmers can be implemented. Farming is a great way to earn money from NFTs with little to no effort.
7. Invest in NFT Startups
When it comes to how you can earn money from NFTs, investing in NFT companies is a great strategy. When investing in NFT companies, you can indirectly earn money with NFTs.
If there’s one thing Non-Fungible-Tokens have established, it’s that they’re not a fad in the crypto world. They have a wide range of applications in several industries that have the potential to transform the world.
There are a lot of promising NFTs startups in the crypto market that are exhibiting excellent advancements.
If you can invest in them as they take their initial steps into a revolutionary future, that would be fantastic. NFT startups are a great way to earn money with NFTs without direct exposure to the volatile marketplace.
8. NFT Flipping
NFT Flipping is a great way to earn money with NFTs. It is the process of minting NFTs at a low price and selling them at a higher price. Flipping typically involves a short-term strategy where valuable items can be bought and resold for a profit.
Choosing the best NFT to invest in and sell for a profit can be challenging, especially with today’s market competition.
Flipping NFTs is a very quick approach to expanding your investment portfolio, despite the hazards that come with it. Buy as many NFTs as you can, when they’re cheap, for the best chance of making money when you sell them. The NFT market is where you can buy all of the NFT games.
Finding a game with a constrained supply of NFTs is necessary to flip them properly. Each NFT has less value as there are more of them available. High-demand NFTs are likewise advantageous to flip. Investing in rare NFTs is another possible way to sell your NFTs at a higher price.
9. Licensed collectibles
A recent advancement in computer science, known as the blockchain, has made digital collectibles conceivable. You may now possess a digital representation of your preferred brand thanks to the placement of licensed collectibles on the blockchain.
It is now possible for you to safely store your tangible collectibles as digital assets on the blockchain, and sell them for the same price or better. Sports card is the best example of licensed collectibles.
What Are Some Examples of High-Profile NFT Sales?
Some of the most popular NFT sales that broke the internet include:
- Chris Torres, the creator of the viral Nyan Cat clip, developed an NFT to sell ownership of the animation. Although Nyan Cat was first published on the internet a decade ago, Torres decided to auction it off due to a current surge in interest in NFTs. In the cryptocurrency Ethereum, he was able to make a profit of around $590,000. (ETH).
- Twitter CEO Jack Dorsey sold his first-ever tweet as an NFT, making him one of the first NFT sales to make headlines. It eventually sold for $2,500,000, with the proceeds going to charity.
- Christie’s auction house held the most expensive NFT auction. It was the storied firm’s first foray into blockchain auctions. The image was a big JPEG file including 5,000 individual photographs taken by the graphic designer. Although he wasn’t extremely well-known, it sold for a little about $70,000,000. It was also the first-ever public auction of an NFT, which contributed to its success. NFTs, on the other hand, remain new enough that “unicorn” transactions like this continue to occur.
What Is the Future of NFTs?
The future of this blockchain experiment, like most others, is unknown. NFTs, on the other hand, do not appear to be going away anytime soon, according to reputable journals. It’s conceivable that, now that wealthy investors are putting money into them, they’ll become more widespread.
With the option to sell the license to use assets without giving up ownership, this could be the next big thing in music sales. To enter the market with the least amount of risk, whatever innovation you own has the potential to be valuable.
NFTs can include game sprites, the music you’ve recorded, photographs you’ve shot, notable accounts on various sites and forums, and pretty much anything else you can think of. With its growing scope and market, the future will likely present several more ways to earn money from NFTs.
Frequently Asked Questions
What do you mean by an NFT?
A Non-Fungible Token (NFT) is a virtual asset that one cannot change or duplicate. NFTs are the digital version of artworks from private collections. Each and every piece of the NFTs art collection is worth a definite amount.
How do you make an NFT?
You can use the right technology and develop beautiful creations to sell as an NFT if you have the right technology. Some NFT creation tools are available on the Internet.
Some are Ethereum's EtherCom, Gnosis' Genesis Engine, 0x's Relayers, and Counterparty's Bitcoin Wallet.
What are some popular NFT platforms and marketplaces?
OpenSea, Mintable, SuperRare, Rarible, CryptoPunks, and Axie Marketplace are some of the online NFT marketplaces available.
These platforms provide opportunities for creators and collectors to buy, sell, and trade NFTs across a wide range of digital assets, including artwork, collectibles, virtual real estate, and more.
What is staking NFTs? What are the platforms that help you to do so?
Depositing, or “locking away,” digital assets into a Defi protocol smart contract to create a yield is staking. Some of the examples of platforms that facilitate NFT staking include Kira Network, NFTX, Only1, and Splinterlands.
7+ Profitable Ways to Make Money from NFTs
As long as the big fish continue to pour money into them, NFTs will become more mainstream. While gaming, swapping collectibles, and manufacturing NFTs are currently the most popular methods to benefit from them, there will be new ways to profit from them in the coming years.
Keep in mind, as well, that NFTs and the underlying smart contract technology are both still in the early stages of their development.
A large number of the platforms that have the potential highlighted in this article are still in the early phases of development as a result of these constraints.
Because of this, it is recommended that you conduct your homework and understand the dangers associated with each strategy before using any of the tactics listed above.
Finally, note that there are risks with investing in NFTs, just as there are with any other type of investment. Do you feel like you now know enough about how to make money with NFTs? Let us know in the comments below!