You’ve probably heard that a lot of people are making a lot of money with NFTs right now and you might be wondering how exactly it works. For some investors, the NFT area is very lucrative, but many are still unclear as to how to get into this area at all. That is exactly what this article is about.
As Web 3.0 gets closer and we will all likely meet in the Metaverse before long, it is important to understand the role of NFTs and how we can benefit from the technology. That’s why we’ve rounded up five ways for you to make money from NFTs.
What awaits you in this article:
Overview of the NFT market
- 5 ways you can make money from NFTs
- NFT staking
- Flip NFTs
- Lend NFTs
- Profit Sharing on Resales of NFTs
- NFT Games
- Anyone can make money from NFTs
- frequently asked Questions
Overview of the NFT market
NFTs (non-fungible tokens) have exploded in popularity over the last year and become a major market in the crypto space. NFTs are digital objects that are stored on a blockchain. The most popular NFT projects are on the Ethereum blockchain.
According to DappRadar, the niche has now reached over $23 billion in trading volume, making 2021 the best year yet for NFTs
The most expensive NFT ever sold is the artwork “Everyday: the First 5000 Days” by 3D artist Beeple. The collection was auctioned in March 2021 for $69 million. As of 2021, OpenSea is the most popular NFT marketplace with over $16 billion in cryptocurrency trading volume.
There is almost an unlimited number of different types of NFTs that can be created, but most often they are media such as images, videos or audio files. In some cases, even physical objects are linked to the digital NFT. The tokens can also be used to transfer ownership of files or media. Specialized markets allow you to sell NFTs, buy new NFTs and make profits from trading. You can sell your NFTs as art or logo on Fiverr and make money If you fear to buy sell in markets.
The average transaction size and overall value of NFTs have increased significantly. The unique tokens seem to be getting more and more valuable as more and more interested people join them. The release of the new NFT collection from Bored Ape Yacht Club, a popular group of NFT designers, also shows interest continues to be high.
Similar to decentralized exchanges for cryptocurrencies (DEXs), NFTs are traded on special marketplaces such as OpenSea or Rarible. Collectors, investors, and artists who create NFTs showcase their collections on these marketplaces and own the ownership rights until the NFT changes hands.
How to make money with NFTs
Since the NFT sector is still relatively new, few investors and collectors know how best to invest. And even less are they aware of the full potential that the technology enables. While NFT marketplaces can be a lucrative source of income, only if you know exactly what you’re doing.
How to make money from NFTs? – An image from BeInCrypto.com
We’ve found five ways you can make money from your NFTs. You can find out how to create an NFT here.
5 ways you can make money from NFTs:
- Staking NFTs
- Flipping NFTs
- Lending NFTs
- Profit sharing in NFTs
- NFT Games
- NFT staking
Staking is the main benefit of combining NFTs with decentralized finance (DeFi). You probably know by now that you get what is called a return on investment when you use your cryptocurrencies for staking. Luckily, staking is no longer just limited to cryptocurrencies. NFTs can now also be staked and can thus generate passive income. Staking means that you lock your digital assets for a certain period of time and receive a reward for doing so. This keeps the entire system stable and you also benefit from it.
The following platforms allow NFT staking:
- Kira Network
- Only 1
Sometimes, a portion of the NFT staking rewards can also be paid out in platform governance tokens. These tokens give owners voting rights to help shape the future development of the platform and its ecosystem.
You can then use the coins you earn through NFT staking for yield farming. You can learn more about the difference between staking and yield farming.
2. Flip NFTs
Another way you can make money with NFTs is the so-called ‘NFTs Flipping’. This means buying and selling NFTs in order to make a profit. Most NFTs are bought cheaply when they first appear on the market and then sold at a higher price on the appropriate NFT marketplace.
Not only the owners of the NFTs can sell them profitably, but also those who trade them. Because for many crypto investors, trading NFTs isn’t really any different than trading cryptocurrencies or even stocks. And many of them have already bought NFTs and resold them at a profit.
But trading NFTs is all about timing to sell. This depends on the type of NFT, the benefit and whether there is still further interest in buying it. This can already be found out with a short internet search and in the respective marketplaces.
In addition, price increases and losses in value must also be taken into account. And additional costs like gas fees, marketplace fees, and royalties to the original owner will eventually eat into your bottom line a bit as well. Also, you should be aware that to make money selling NFTs, you need to invest time and effort. This includes extensive research and an in-depth understanding of the crypto market.
3. Lend NFTs
Renting out NFTs is a great way to earn passive income. Especially if you already own assets that are in high demand.
For example, some NFT card games allow players to borrow cards from others to increase their own chances of winning. The agreements and conditions of the two parties run via so-called smart contracts. As a rule, users can determine the rental period and the rental fee themselves.
ReNFT is a platform that allows users to borrow or lend NFTs. Rental companies set the maximum rental period and a daily rate. This is currently between 0.002 and 2 Wrapped Ether (WETH). On the FootballCoin platform, limited NFT footballer cards can be borrowed in order to make profits in cryptocurrencies.
4. Profit sharing on resales of your NFTs
Did you know that NFT creators can make money by reselling the NFTs on the secondary market? With every resale, a certain percentage of the sales price goes back to the original owner. This means that as a creator, you can earn passive income from your NFT even after you sell it.
For example, if the royalty on a digital artwork is 10%, the original creator gets 10% of the sale price each time the artwork changes hands. On the NFT marketplaces, you can create your NFT and set an individual license fee.
You don’t need any additional knowledge for the whole process, because everything runs through the NFT marketplace and the distribution of income is regulated via smart contracts. For you as the author, this means that you do not have to check incoming payments or compliance with the license terms.
5. NFT Games
Video games using NFT technology could be the future. Although none of the NFT games have become successful worldwide, the potential for NFTs in video games is huge.
Make money with NFTs and play video games at the same time? – An image from BeInCrypto.com
Gamers are known to spend big bucks on digital objects. Whether it’s World of Warcraft gold or Counter-Strike skins, these markets are worth billions of dollars. If a major video game developer were to sell game assets as NFTs, the impact on gaming and the blockchain ecosystem would be huge.
However, the question of how to make money in blockchain games with NFTs is a bit more complex.
A majority of the NFTs traded on the marketplaces are digital works of art. But there is also a significant proportion of in-game NFTs. These can also be used within their respective games and platforms as most are play-to-earn games where you receive rewards in cryptocurrencies.
We expect many more projects to be launched in this area over the next few years, but we’ve already seen phenomenal success from games like Axie Infinity, Plant vs. Undead or CryptoKitties. NFTs in games offer far more possibilities than digital trading cards or virtual works of art. Because video games use tokens that can be extremely complex and interactive.
So, in-game NFTs aren’t just an expense to your hobby, they’re also an investment. Play the game, use the NFTs to make a profit and just sell them when you get tired or want to play another game. As simple as that.
Anyone can make money from NFTs
Now that you know how to make money from NFTs, you should be on the lookout for NFTs to a stake, lend, or use as in-game items in NFT games. But the most important thing is that you invest in the right NFTs.
If you are an NFT creator, now is the time to start planning your next NFT collection. And don’t forget to set an appropriate license fee for your digital artworks. And this is just the beginning of the NFT era. As the Metaverse invades our digital lives, we expect to see many more opportunities and features in the NFT marketplaces and platforms in the future.
frequently asked Questions
Can you make money with an NFT?
Yes, there are many ways to make money from NFTs. For example, you can buy NFTs and sell them at a higher price or get a share of the profits from resales. In addition, certain NFTs can also be lent for a fee or used for profitable staking. Another option is to play NFT games like Axie Infinity or Plant vs. Undead.
Should I buy an NFT?
The NFT marketplace has grown exponentially in 2021 and many investors have successfully sold NFTs for a profit. However, not all NFTs are good investments and you should do your research before purchasing an NFT.
How much does it cost to create an NFT?
Creating an NFT is free on the most popular NFT marketplaces like OpenSea or Rarible. The platforms even allow production without gas fees, so that all artists can offer their digital art on the platform. The actual creation of the NFT on the blockchain only occurs when the first sale is made and the fee is paid by the buyer.
What can you sell as an NFT?
NFTs can be almost anything that can be represented in digital form. The most popular NFTs are digital artwork, audio files, in-game items, videos, and other digital content.