Making money with NFTs is possible. Here’s everything you need to know about how to earn money with non-fungible tokens, a tool linked to the blockchain.
Non-fungible tokens are proving to be one of the most profitable blockchain-based experiments in history. In particular, among the most expensive NFTs ever sold is a digital artwork by the artist Beeple worth a whopping 70 million dollars. A tweet by former Twitter CEO Jack Dorsey was even sold for just under 3 million dollars, while a video clip of Lebron James performing an enviable dunk sold for a whopping 200 thousand dollars.
A sector in which a lot of money circulates and which could turn out to be a gold mine for many people. However, this does not happen easily and quickly because the cryptography behind NFTs is quite complicated. For this reason, the editorial staff of Money.it has decided to create guides that explain in detail what NFTs are, how to buy them, and how to create a non-fungible token. Today, however, we will focus our attention on the ways to earn money with NFTs, buying and/or selling them to make money.
Earning with NFTs: first you need to know them
Before seeing how to earn money with NFTs, it is good to have a clear idea of what they are. Going into detail, non-fungible tokens are associated with bits of both digital and unique property, connected to the blockchain, or the same technology that guarantees cryptocurrencies such as Bitcoin and Ethereum to be traceable to an owner. Unlike cryptocurrencies that are fungible, however, NFTs are not fungible.
But what does this mean? Well, cryptocurrency can be considered almost like a currency that has value in itself. An NFT, on the other hand, assigns a unique value to a digital asset, such as a certificate or a declaration of authenticity in the digital space, supported by the blockchain. In this way, whoever is, for example, the sole owner of a digital work of art, or a video or a simple tweet, is certified.
Earning with NFTs by following the rules of the market
As happens according to the rules of the market, investments involve buying and selling. It follows that to earn with NFTs, you must necessarily make a purchase and/or a sale. Once digital content associated with an NFT is put up for sale, the buyer can be sure of having purchased something unique, thanks to the security provided by the blockchain. Obviously, deciding to give away or exchange NFTs for free is always possible. The tokenization process, however, ensures that the digital property is certified and plays the role of a certificate of authenticity.
But from a practical point of view, how to make money with NFTs? Well, first of all, you can create and sell NFTs independently for almost any type of digital asset, such as music files and digital art. To better understand how to bring home a lot of money thanks to this tool, we will illustrate below some ways to make money with non-fungible tokens. Here are which ones they are.
Investing in cryptocurrencies
To make money with NFTs, it is recommended to first invest in some cryptocurrencies. Non-fungible tokens were born on the Ethereum platform and are now available on the new platforms for NFTs. If you intend to use the Ethereum blockchain or some ad hoc platforms, you will need some cryptocurrencies because to create NFTs you need to pay commissions for the crypto service.
Going into detail, to buy cryptocurrencies you must:
- create a wallet: to this end, all you have to do is create an account on the chosen provider;
- buy cryptocurrencies: after creating the wallet, you must purchase some cryptocurrencies. In this regard, it is worth noting that the price of cryptocurrencies can fluctuate dramatically in a few moments;
- at this point it is essential to keep track of the private key that is assigned to the purchased cryptocurrency and transfer the cryptocurrency to the wallet.
Crypto Gaming, earn money by minting game characters in the form of NFTs
In recent times, the world of Crypto Gaming is becoming increasingly widespread. Those are games that use blockchain and cryptocurrencies to integrate new ways of playing and often also earn money through Play to Earn.
As an alternative to "traditional" cryptocurrencies, it is possible to earn money with NFTs simply by minting and selling game characters in the form of NFTs. A clear example of this is the Axies and Mystic Axies from the game Axie Infinity, which are currently worth over a million dollars.
Create an NFT on a platform
To earn money with NFTs, you can create them and then sell them on the market. A non-fungible token can be created and "linked" to almost any type of digital asset and then put on the market. From memes to audio files, through videos and digital photographs, there is an embarrassment of choice. Just because it is an NFT, however, does not mean that it is easy to sell it and earn money. Marketplaces, on the other hand, are already full of NFTs that fail to make money.
At the same time, it is good to remember that NFTs can significantly increase the price of a virtual property, acting as a certificate of authenticity in the antiques and collectibles market. The NFT guarantees that, whatever happens, the digital property it certifies is the only one. The real deal of this tool is represented by its uniqueness.
But how do you create an NFT? Well, after investing in some cryptocurrencies, choosing an NFT marketplace, and connecting your crypto wallet, we recommend that you:
- create a collection and upload the work: to this end, you generally need to select the "new item" item in the menu of the chosen marketplace and follow the instructions;
- create the NFT, taking care to add a name, description, and any type of information that may be useful for potential customers.
- decide which cryptocurrency to accept as a form of payment and whether to sell at auction or by setting a fixed price. Not only that, you will also have to decide whether to receive a royalty compensation for each sale or not.
In any case, it is always good to remember that these services require the payment of commissions and royalties that reduce the net amount obtained.
Choosing an NFT marketplace
An NFT marketplace is, as you can easily imagine, an online "place" where you can buy and sell NFTs.
Among these, the following stand out to date:
- OpenSea: to use this platform you must first open a crypto wallet, i.e. a wallet where you can store NFTs and cryptocurrencies. Then you must go to the OpenSea website to connect the crypto wallet and create your account. It is good to remember that on each purchase or sale of NFTs you must pay commissions that are calculated as a percentage depending on the blockchain used;
- Binance: here there is a large section dedicated to NFTs where you can buy and sell both some collections launched exclusively and those already present on OpenSea. Since it is a centralized exchange, you do not need to connect an external wallet. The moment you create an account, you have an integrated wallet available where you can store NFTs, but also cryptocurrencies;
- Crypto.com: known for cryptocurrency trading, Crypto.org also has a large section dedicated to NFTs. In particular, exclusive collections are launched on this platform that could be worth quite a bit of money.
NFT flipping
Another valid solution consists in doing NFT flipping. That is, it involves buying an NFT at a low price and then reselling it at a higher price. In this case, therefore, you do not need to create an NFT but rather buy a ready-made one. To make your way with this technique, it is recommended to first analyze the trends and learn about the niches to know which NFTs are undervalued and could have a higher value in the future. Buy rare pieces and consider the lowest price that a seller is willing to accept for an NFT.
But not only that, analyze the high volumes, or the number of cryptocurrency transactions that have taken place for an NFT or a collection of NFTs. Thanks to this data, you can obtain more information on the interest that a certain NFT is attracting and on how its value could increase. The higher the volume, the greater the chances of reselling the NFT in a short time.
Exploiting NFTs in the real world
To increase profit margins, it is advisable to opt for the sale of a collection of NFTs rather than individual NFTs. Such collections can include characters, music, or images.
Furthermore, if they are quite successful, it is possible to exploit their popularity outside the digital world. For example, it is possible to print images of NFTs on bags, shoes, t-shirts, and so on. An alternative but equally valid way to earn money is with NFTs.
Making money with NFTs is it really possible?
To make money with NFTs, you have to sell them. To sell them you need someone on the market who wants them. First, you need to have original content for which you own the copyright, such as a photo you took, a gif you created, or any other form of digital content.
Once you have created your NFT on a marketplace, you should check the sales page to see if there are any offers to buy the non-fungible token you own. If there is an acceptable offer or if a user offers to pay the full asking price, then you may decide to accept. The related cryptocurrency offer is transferred to your wallet. At this point, you can decide to withdraw the funds to purchase other products through cryptocurrencies or exchange them for money.
In any case there is no absolute "best" method to use to earn with NFTs. The advice is to evaluate the various paths available and opt for the solution that best suits your needs and budget. If you are a content creator or an influencer, for example, it may be time to create your own NFTs and sell them.
Original article published on Money.it Italy 2024-09-19 13:24:33. Original title: Guadagnare con NFT, come fare? I metodi più efficaci
