NFTs is a buzzword that entered the digital vocabulary in recent years. But they’re not just another trend that comes and goes. With a market cap of over 5 million ETH, NFT markets are still making shockwaves in the world of web3. NFTs have the potential to make life easier and, most importantly, allow you to generate income in multiple ways. This blog looks at some key aspects of NFTs and how to make money with NFTs. Read on to learn more:
What’s an NFT?
NFTs or Non-fungible tokens are digital assets stored on a blockchain using cryptographic methods. They come with an identification code and metadata that make them unique. NFTs represent assets like digital art, while you can also use them to create tokens that represent real-world assets. Tokenizing real-world assets makes it easy to trade them and secure them against infringements. NFTs can also represent identities and property rights.
What Gives an NFT Value?
When an NFT is created, it has no value. It derives value from multiple factors such as:
If a type of NFT is scarce, its demand rises, and so does its value. For instance, highly valued artworks made by famous artists fall in the rare category. As a result, their value would also be high. Famous examples include artworks, ‘The first 5000 days’ by Beeple and the first tweet by Twitter’s founder Jack Dorsey, both of which sold for millions of dollars.
The value of an NFT rises if it has a real utility, such as tokenizing real estate, securing identity, or other assets.
NFTs linked to real objects carry a high perceived value. For instance, NFTs used as tickets or essential documents are highly valued.
- Utility on multiple applications
The ability to use an NFT in multiple applications is a default value-raiser for NFTs. For instance, an NFT becomes highly sought-after if you can use it in different games.
Social acceptance of an NFT directly influences its value. A great way to view this is to check the social media profiles of the NFTs, such as Twitter and Instagram. The numbers here speak volumes about their value.
How to Create and Sell NFTs
- You have to pay in cryptocurrency for minting and selling your NFT. So choose a digital wallet to keep your cryptocurrency and add some to your wallet.
- The next step is to link your wallet to an NFT platform where you want to sell your NFT. Once you sign up to the platform and link your digital wallet, you can upload the file you wish to turn into an NFT.
- Now, you need to select a payment method to sell your NFT. You can choose from ‘fixed price’, ‘unlimited auction’, and ‘timed auction’. After that, decide on a minimum selling price for your NFT.
- You have to give your NFT a title along with a brief description. Further, you can charge a royalty that you will earn every time your NFT is sold.
- Finally, pay the listing fee charged for the NFT sale. And when the sale happens, you have to pay a commission fee for transferring money from the buyer’s wallet to yours.
Popular NFT Marketplace
NFT marketplaces are the doorways to NFT sales and are great for connecting with like-minded people. There are plenty of NFT marketplaces today, but here are some of the most popular ones:
OpenSea is the platform with the highest NFT sales. You can sign up for free, and the platform supports all types of digital assets. Besides, it accepts over 150 different tokens for payments.
Axie is the online platform for the NFT-based video game Axie Infinity. On this platform, players can buy new avatars of the game called Axies. Besides, the platform is built on the Ethereum blockchain.
Rarible is a popular NFT marketplace for all types of digital assets. The only thing to remember is you have to use their native token, Rarible, to carry out trade on this platform.
How to Make Money from NFTs?
NFTs are a new-age investment that lets you earn income in multiple ways. Here are a few ways to make money from NFTs:
After you’ve sold your NFT, you can earn a small income through royalties. Select a fixed royalty amount when you mint the NFT. With every sale of the NFT, you will keep receiving the royalty amount for the rest of your life.
You can take advantage of the fact that NFTs are unique by renting them out to those in need. Loan your NFT to someone else for a fixed period and collect its timely rent.
Many entrepreneurs treat NFTs like shares that can be purchased and sold at a profit. If you own an NFT collection you no longer need, you can sell them at a marketplace. You can get better at this and earn decent revenue from this too. For this, you must be excellent at judging the value of NFTs to make profitable trades.
You can earn money or cryptocurrency by participating in NFT games. Apart from that, you can earn by exchanging in-game NFTs for a profit.
Staking is the process of depositing your NFTs to a digital protocol to generate income. There are dedicated platforms that let you stake NFTs.
NFTs have wide applications in many fields, and NFT companies are mushrooming worldwide. Investing in promising NFT startups is a great way to earn from NFTs.
What Are Some Examples of High-Profile NFT Sales?
Beeple made the most high-profile NFT sale, and the NFT was ‘Every day’s: The first 5000 days’. It fetched $69 million and made the concept of NFTs echo worldwide for the first time.
The NFT named ‘Clock’ by Julian Assange and Pak is among the most expensive NFTs. It fetched 16953 ETH or $52.7 million.
What Is the Future of NFTs?
The world has already embraced a shift to the digital world. Major activities have shifted to digital; hence, people will also accept NFTs on a large scale when they offer real utilities. Ease of adoption, utility, and interoperability will be critical to wide NFT adoption.
Now that you’re familiar with how to make money with nft, there are multiple ways to generate income from NFTs. One thing is clear, if NFTs make people’s lives easier, they will not hesitate to adopt them globally. With innovations and trends in the NFT world daily, we can expect to see more people step into NFTs in the coming years.
Frequently Asked Questions
NFT or non-fungible token is a digital assets stored on a blockchain using cryptographic methods, making them unique and one of a kind.
Staking NFTs is when you deposit your NFTs on a protocol and earn a yield. The NFT could be anything—music, art, or video. NFT staking allows you to earn an income while you remain the owner of the NFT.
Here are a few NFT staking platforms
Some common uses of NFTs include:
Transferring ownership among users safely
Creating digital collectibles
Representing global identity digitally
Tracking digital assets accurately