NFTs are everywhere, and they have turned into the most profitable blockchain-based thing today. From big brands and also small businesses to ordinary people, everyone is gearing up to join the NFT bandwagon. NFT sales hit $2.5 billion in the first half of 2021, and the numbers are only growing! If you’re looking for a side hustle, perhaps a stream of passive income to earn a better living and afford luxuries while you keep paying the Spectrum internet prices easily, then NFTs can help. There are multiple ways to generate money by selling NFTs and bank profits. Today I will describe how to make money with NFT in my article.
First, Let’s Understand What NFTs Are
NFTs or non-fungible tokens are digital receipts that are stored on the blockchain. People can see them and independently verify them too. However, These digital receipts have unique information telling who the item’s owner is and other details like if they are tangible or not.
An NFT assigns a one-of-a-kind value to a digital asset. This makes it easier to recognize the owner of the digital art, video, or also a tweet.
How to Make Money With NFT?
Now let’s get to the part where we learn how to make money with NFTs. Here are some ways to go about it:
1: Create Them and Sell Them
Got a knack for graphic designing skills, and you call yourself creative too? Then but your creativity to use and design digital art. It could be anything – images, memes, or videos and gear up to monetize them.
Although, Many NFT marketplaces are available where you can sell this digital art. The names include OpenSea and Raible. Keep making art and keep selling it to make money. You might have to pay a small fee for listing your NFTs.
2: Start NFT Trading | How to Make Money With NFT?
This is a promising way to make money, and if you get lucky, you can learn a significant profit on the deal. The process is pretty simple – you invest in NFTS, buy them and then sell them at a profit.
Before you jump into trading NFTs, you must know that not all NFTs are created equal. Some are don’t worth much, while others are worth millions. It would be best if you looked at each piece of art critically for the prospects of making money through resale.
3: Rent Them Out
It’s crazy, but it’s true! You can rent out NFTs and make passive income from this. NFT is a popular platform to rent or also lend your NFTs. You can set a maximum borrowing period and even daily rates ranging between 0.002 and 2 WETHs. It is the most common way to make money with NTF.
However, Many online card trading games allow the players to rent the NFT cards to boost their odds of winning. Smart contracts govern the terms for such deals.
4: Create NFTs for Games | How to Make Money With NFT?
Another way to make money via NFTs is to make NFT-based video games. Several games these days allow players to purchase in-game items, including NFTs. You can create NFTs for these games and earn a decent amount of money. These NFTs are far more advanced than simple digital arts, and the market for in-game NFTs will expand in the future.
5: Stake the NFTs
Staking is depositing and locking away your digital asst in a smart protocol contract for generating a yield. It is also a new way of earning passive income. You lock up your assets in DeFi and receive rewards. There is no need to sell your collection!
However, Several platforms are now supporting staking. Some require the user to buy a native NFT to earn the staking rewards. Staking’s primary function is to incentivize the blockchains. Prizes are given to those who validate their transactions on blockchains timely and also accurately.
6: Through Royalties | How to Make Money With NFT?
Content creators can impose royalty fees whenever their digital art switches from one hand to another on the secondary market. You can continue to make passive income long after selling your NFTs to collectors, making money indefinitely.
However, The creators of the art usually set a predetermined percentage at the time of minting the NFT. Smart contracts govern the entire process of distributing royalties. Therefore, the creator does not even have to be involved in the hassle of enforcing the royalty terms. Or they are tracking their payments. Everything is regulated automatically, and you keep making money!
7: Offer Liquidity in Exchange for NFTs
It is now much easier to offer liquidity and get NFTs in return, and many platforms are making this easier for us. For instance, if you provide liquidity on Uniswap V3, you will receive an ERC-721 token, signifying your share in the total amount. Whenever you feel like liquidating your position, sell the NFT!
It is advised to do your due diligence, understand all risks involved and once you are sure you know everything, start making money through NFT!