How to make money on NFT?
- October 14, 2021
- Posted by: admin
- Category: NFT
The significance and value of objects have long gone beyond the physical world. Skins, weapons, clothes, and other things have been sold in games for several years. All this exists exclusively in the virtual world and has practically no embodiment in reality. This phenomenon also affected art and all kinds of collecting, trying to adapt flexibly to new trends.
With the help of NFT technology (non-fungible token), it became possible to make money on virtual blockchain platforms. The technology makes it possible to secure ownership of any digital asset: an object of art, a game character, a domain, a collectible virtual item.
Who can earn with NFT? Hypothetically, such an opportunity is available to everyone: an artist, a collector, a player, and a crypto merchant. Trades can be conducted in any currency, but you can pay for tokens in ETH in most cases.
How can you make money with NFT?
1) Create and sell your virtual artwork.
To get your NFT, you can use any suitable platform that can create such tokens. You need to upload your digital items to it. You also need to create ETH crypto wallet.
The main NFT platforms are presented in our list. But now, in the NFT fever, more and more sites appear.
The size of this NFT market segment is impressive. According to CoinDesk, users paid $100 million for digital paintings alone in February 2021.
It is important to understand that you can create and sell an NFT in one copy or specify more copies.
An additional source of income for the author – Royalty. NFTs can be bought on platforms to resell at a higher price. If someone purchased a token for this purpose, then the author of the NFT can receive royalties from each subsequent resale, which he determines himself.
The amount of royalties from the resale of NFT depends on the platform: usually, it is 5-10% of the amount for which another person sold the virtual asset.
The approximate profit can be calculated by subtracting the cost of its tokenization and the resource commission from the price of an asset.
2) Resale NFT
Buying NFT on marketplaces, and selling it above the purchase price in the future, is a good way to make money for those who do not want to spend time and effort making their digital assets. It is convenient to buy promising NFT tokens on marketplaces, their number is growing every day.
3) Equity participation in the ownership of NFT
It is possible to buy tokens, which are partial ownership rights, which allow the NFT to be “split” into parts. (A share of one non-fungible token can have several owners at once)
4) Lending to NFT Collectors
You can lend to NFT collectors against the collateral of tokens. In the event of default by the borrower, ownership of the NFT passes to the lenders.
5) NFT games
By 2021, a critical number of developers and players of blockchain-based crypto games had been accumulated, which led to the formation of an entire market segment – GameFi (Game Finance).
Renowned developer André Cronier proposed the term in 2020. All the variety of game projects on the blockchain, including those using NFT, fall under this concept.
There are several categories in the GameFi segment:
- game worlds or metaverse (metaverse);
- NFT games of different genres using the Free2Play (“play for free”) and Play2Earn (“play and earn”) models;
- projects allowing the use of NFT in DeFi services.
- projects providing tools for the development and distribution of NFT games, as well as for transferring existing online games to the blockchain;
At the end of August 2021, the total amount of transactions in NFT games for the month exceeded $ 820 million.
Users spend millions of dollars on in-game purchases. We can confidently say that NFT games are now developing on a par with crypto art.
How to make money on NFT games:
- Buy an asset from an NFT game, and after a while sell it at a higher price.
- You can start from scratch without investment by performing various actions to develop your character. Its value will increase over time.
- You can earn bonuses – raffles of tokens inside the game, participate in competitions, which can also generate income.
6) Collecting NFT
Collecting in the real world is a topic that has long been known to all of us. Probably, each of us collected something. Numismatics, Philately, collecting baseball and other sports cards bring fabulous money to the owners of the rarest copies.
NFT is rapidly virtualizing this area too, creating a modern trend.
- Sorare – Is a fantasy football game built on the Ethereum blockchain and based around collectible NFTs. Similar to real-life collectibles, Sorare football players cards are also valued on scarcity. There are two ways to earn money on Sorare: finish in a certain spot in any of Sorare’s bi-weekly tournaments, sell cards you either bought or won.
- NBA Top Shot – This NFT platform collaborates with the basketball league of the same name. Here they sell not traditional static player cards, but full-fledged clips or videos. Each lot is a unique token. The prices of these basketball NFT cards are rising rapidly. For example, cards with moments of the best NBA player LeBron James cost from $250 to $60 thousand.
- ToppsMLB – Collectors can find their favorite Baseball players reimagined as digitally enhanced, officially licensed Topps MLB NFT collectibles – ushering in a new age of baseball card collecting. You can buy/sell your cards on the marketplace. Digital collectibles you collect are stored and viewable in your WAX Cloud Wallet. Users can earn rewards through burn events.
7) Crypto trading NFT tokens
NFT projects usually have their crypto tokens owning and operating by project participants/players. Users may pay for a range of avatars, wearables, names, and more on the project’s marketplace. NFT projects utilize their token to empower users who actively interact with the protocol.
You can participate in the NFT trend simply by trading such NFT coins on different cryptocurrency exchanges. Most exchanges have a separate filter for NFT tokens. Make your analysis of the market and pay attention to the most profitable coins. You may actively trade or just hold the most perspective coins for the long period of time.
Below you can see current top NFT tokens which can be traded on cryptocurrency exchanges:
Getting income on NFT is real, and the function itself is available to everyone. To make money on copyright and property rights, you do not need special knowledge, and the procedure itself takes a few minutes. The disadvantages include only difficulties in scaling the Ethereum network, as well as high fees. This is why Non-Fungible Token platforms are increasingly appearing on third-party blockchains, for example, Binance Smart Chain.
Digital artists and creative people alike have a unique opportunity to make millions of dollars doing what they do best. Well, or at least a couple of hundred dollars for drawing pictures, which is not bad either. You can sell NFT for different cryptocurrencies, it all depends on the platform.
Gamers can have fun and make money simultaneously with NFT-games. Collectors may try to go into the virtual world and find more opportunities for their passion. Traders should think about new volatile assets represented by NFT tokens. Investors should definitely pay attention to both NTF art objects and promising tokens for the long term.