13 Jun 10 Ways to Make Money with NFTs
With all the news about people making crazy amounts of money over the last two years with NFTs, there’s a pretty high possibility that you have, at some point, asked yourself, “What’s up with that?” You may have even wondered how you could get in on all the action and make money with NFTs!?
Figuring out how to reap the rewards of this red hot trend might be overwhelming, particularly with the big figures being tossed about. NFTs being sold for millions of dollars have continued to shock the internet and change the way people look at digital collectibles.
Feeling like you’re missing out? Well, you’re not! The good news is that you don’t have to watch from the sidelines; almost anyone can leverage NFTs to earn an income. You don’t even need any hi-tech or fancy equipment—just your phone or computer and a wifi connection—and that’s it!
Sounds intriguing, right?
If your answer is a resounding “Hell, yes! That’s something I’d like to hear more about!” continue reading to learn how to make money with NFTs using today’s most effective approaches and trading platforms. Mark our words…you’ll soon be making money within the NFT ecosystem in no time!
How you can make money with NFTs…easily!
Before we get into the juicy bits about what you can do to earn crypto with NFTs, here’s a quick recap to get you up to speed:
What are NFTs?
NFT = Non-fungible tokens
These are tokens that can’t be modified or copied. Think of them as the digital versions of pieces of art from a private collection. Every piece of art in the collection is distinct and valued at a certain amount of money.
An NFT, like a work of art, can be sold for cryptocurrency or fiat currency (USD for example). However, the asset transfer of the token, like bitcoin, is recorded on the blockchain. This determines who owns a given NFT.
Each NFT is connected to the digital or, in certain circumstances, the physical asset of the original owner. Any digital item may technically be transformed into an NFT. The beauty of NFTs is that anybody can convert images, video, music, and other content into NFTs to sell them.
You may be asking why individuals spend such large sums of money on something intangible like NFTs? We’ll get into it later…
What determines the value of an NFT?
The value of an NFT is determined by consumer interest, just as it would for an art collection. The rarity and number of interested purchasers are essential elements in determining their worth, just as they are with trading cards.
Although an image may be turned into an NFT, no restriction prevents it from being reproduced or shared. The blockchain, however, stores and explicitly displays who owns the asset; the ownership of NFTs, therefore, cannot be forged. A major factor determining an NFT’s value is the exhilarating feeling of having exclusive ownership. Most individuals make money and appreciate the value of their NFT via resale.
Popular NFT Marketplaces and Platforms
The most common way to generate money from NFTs is to sell them on NFT- specific marketplaces. There are several platforms available now where you may create, list, sell, and trade NFTs, including:
Easy ways to make money with NFTs
In no specific order, here are the best ways to make money with NFTs:
1. Trade NFTs
Some businesses and investors consider NFTs like stocks, buying and selling them to profit. If you already have a collection of NFTs and no longer want them, you can simply sell them just as you would if you produced them yourself. The only step you’ll skip is the minting procedure.
By buying and selling NFTs, you can financially invest in them. For example, in less than six months, Pablo Rodriguez-Fraile, a Miami-based art collector, flipped a Beeple digital artwork for approximately 1,000 times its original price! Saying this, remember that not all NFTs are the same. Some aren’t worth much, while others are worth millions of dollars. As a collector, you’ll need to scrutinize an item for the possibility of benefitting from the resale in the future.
When it comes to trading NFTs, understanding when to sell is critical. Making money from NFTs via trading may seem hazardous to many, but the payoff may be well worth it.
When is the best time to sell an NFT?
Well, it depends on the item, the reason for acquiring it, and whether or not the item in question is of interest to anybody else. You may find out by doing a quick search on the internet and in the marketplace.
You’ll also need to be mindful of any price appreciation or depreciation. Remember to account for extra expenditures such as gas, marketplace listing fees, and royalties paid to the original owner when calculating your possible profit and loss. After everything is said and done, these costs will lower your take-home amount.
If you’re interested in more advanced NFT trading that requires a complete grasp of the cryptocurrency industry, you should speak to a pro. Start looking out for ‘Alpha’ groups on whatsapp or telegram. There you can add value and earn the respect of your peers. People in this industry love to share, and this benefits everyone as it grows.
2. Free Mints
Over the last month or so, there has been a massive amount of interest in NFT collections offering ‘free mints’. Why? Because this is a fantastic way to build a community without asking them to invest initially.
When you choose a free mint collection, you will not be charged. It’s also a way that the teams don’t have to dox if they don’t want to (but this does have its associated pros and cons.) To mint one of these NFTs, you are only charged ‘gas fees,’ which are the costs of transacting on the blockchain (a ‘Gwei’ is the unit of measurement for gas).
The fee might rise or fall depending on the amount of traffic on the blockchain when you’re minting; the more traffic, the higher the cost.
The free-to-mint NFT known as Goblintown has gained popularity because of its NFT market valuation of more than US$50 million.
3. Paid to Mint
Another trend that’s hot right now involves getting paid to mint NFTs. For The Culture’ started with this a couple of weeks ago, and was backed by some heavy-hitting influencers.
Check them out on @nftftc on Twitter—they paid 0.01 ETH to each person minting.
It’s hard to know if this will continue and in which capacity, but as far as making money with NFTs, this is a very attractive opportunity.
4. Renting NFTs
So, we’ve established that NFTs can’t be copied…but did you know you could rent them?
The rental process is straightforward; it operates similarly to leasing a real estate property and collecting rent. Renting an NFT implies lending it to someone for a specified period in return for monetary compensation. Renting out is an excellent approach to making money from NFTs without giving up ownership.
Can royalties be made off of something as intangible as NFT?
Yep, they certainly can!
An NFT’s creator can receive lifelong royalties even after selling a digital asset to someone else (however, the creator must enforce these conditions).
Royalties are a great source of passive income for artists. Although it may initially seem a tad confusing, royalties are important to consider when making money from NFTs.
6. NFT (Play-to-Earn) Games
Video game participation is becoming a viable source of income for many people. NFTs may be used to buy and exchange in-game items in blockchain-based games. There are already some incredibly expensive collectibles on the market, such as those found in the game CryptoKitties, that are tough to obtain.
In certain instances, the price of a single crypto cat has exceeded $300,000. Recently, a growing number of games have been launched that make use of less costly NFTs. Some businesses even provide complimentary items to the first few individuals who sign up. Making money with NFTs is definitely doable with all the latest gaming NFTs and the right knowledge.
8. Utilize NFT-powered yield farming
NFT-driven AMMs are now accessible for users to farm for yields since NFTs are quickly becoming an essential component of AMMs in general. When you mix several DeFi protocols, you can get the most out of your digital assets. This is referred to as “return farming.”
We will use the Uniswap platform to illustrate how the LP-NFT tokens supplied as liquidity provider tokens on Uniswap may be utilized as collateral or staked on other protocols to earn additional returns.
Farming is an excellent technique to get income from NFTs with little to no work. Consider it a way to earn a yield on top of a process that already yields a profit. A multi-tiered income-generation strategy suitable for yield farmers may be executed with this option.
9. Staking NFTs
One of the benefits of combining NFTs with decentralized finance (DeFi) protocols is the ability to stake NFTs. The staking process involves depositing, or “locking away,” digital assets into a DeFi protocol smart contract to generate a dividend.
While some platforms let you utilize any NFT, others require you to purchase native NFTs to get staking token incentives (often priced in the platform’s native utility token).
Platforms that support NFT staking include the following:
As is often the case, a part of the benefits provided to stakeholders is priced in governance tokens. In most circumstances, staking NFTs provides coins that may be re-invested into other yield-generating protocols. Token holders may influence how their ecosystems grow in the future due to these protocols.
Because of the growing integration of NFTs and DeFi infrastructures, you may now contribute liquidity and get NFTs in return for building a position in a particular liquidity pool. Furthermore, staking is a reasonably steady technique to generate money from NFTs.
Suppose you provide liquidity on Uniswap V3, for example. In that case, the automated market maker (AMM) will issue an ERC-721 token, also known as the LP-NFT token, representing your percentage of the total amount locked into the pool. The NFT is also etched with the token pair you placed and the tokens’ emblem, and the pool’s address.
You may quickly liquidate your liquidity pool position by selling this NFT.
10. Invest in NFT startups
Investing in an NFT business is an efficient method for earning money from NFTs. You may make money indirectly by investing in NFT companies. If NFTs have shown us anything, it’s that they are not just a passing trend in the crypto world. They have several uses in various sectors and have the potential to change the world.
Many NFT startups in the crypto sector are making waves in the NFT space. Imagine investing in them as they take their first steps toward a revolutionary future? Investing in NFT startups is an excellent approach to making money with NFTs while avoiding direct exposure to the turbulent market.
Don’t get left behind!
Like other blockchain experiments, the future of NFTs is uncertain. BUT, according to credible communities (and all the experts out there), NFTs don’t look like they’ll be going away anytime soon.
Think of it as the next layer to the internet, web3. If you weren’t around to profit from the internet in the early 2000s, now is your chance. It’s literally at your fingertips.
It’s also very possible that they’ll become more mainstream now that affluent investors are investing large sums of money into the industry.
In reality, anyone can profit from NFTs! With careful study and appropriate preparation, you can also join the millions of people worldwide benefitting from NFTs.