How to make money with NFT?
Non-fungible tokens or NFTs have become one of the best and profitable businesses around the world.
They are based on blockchain technology just like cryptocurrencies. Many people are making plenty of money with NFTs but that doesn’t mean you will become rich overnight.
Making money with NFTs requires time but it has proven itself to be one of the fastest ways for generating an income.
The cryptology behind NFTs is difficult to understand but how to make money with NFT is not so tough.
Here, we will discuss several ways on how to make money with NFT. Many investors are trying to offload their NFTs because of the high gas fees that make them expensive.
However, there are various ways for making money with NFTs to generate an income than selling them at higher prices.
In this guide, you will know how! But, first, let’s start with the basics of what is an NFT, and then we will focus on other related topics.
Let’s get started!
Overview of NFT | what is an NFT?
NFT is the abbreviation for Non-fungible tokens. If you are new to this concept, you can think of them as digital contracts or smart contracts specifying the ownership of the arts made by you.
They are stored on a public database, referred to as a blockchain. This helps to protect your ownership so that no one can change them but is visible to everyone.
You may have understood that this is highly secure than the traditional methods where everyone can copy your art and claim to be the owner of that art.
An NFT can be sold for money or cryptocurrency and hence they are tradable. When they are sold or bought, the asset transfer gets recorded in the blockchain.
One NFT will contain the ownership information about a digital or sometimes physical asset. No matter whatever it is, any digital form can be turned into an NFT.
The Facebook posts, Instagram reels/pictures, or anything can be turned into an NFT and can be traded.
Thankfully, you don’t have to be an expert in art or crypto for making money with NFTs. You will just need the right path to make money with NFT. Let us now look through the ways on how to make.
How to make money with NFT? | Best Ways
In this section, we will make you aware of the different strategies to make money with NFTs.
Designing personal NFTs
The first and the best way for making money with NFTs is to create your personal NFT and then list it in the marketplace for sale.
Although NFT is the most common type of NFT, it can be some music, books, domain name, or others.
You don’t need to be a brilliant artist for making NFT art. You can just design some pixel art and create an NFT to sell it.
Various online tools are available for creating NFT arts like Canva, Photoshop, Illustrator, etc.
Once you create the NFT, you need to list it on a marketplace. One of the most popular marketplaces that you can choose is OpenSea.
You can even try freelancing by helping people on how to design the NFT arts or design for them. This opens up another path to create a side income from NFTs.
Marketing other’s NFTs
In any sort of business, the most difficult part is marketing. NFT is not an exception too.
Most people can create amazing NFT arts but they fail in the marketing part and hence leave NFTs overall.
You can learn the process of marketing NFTs by doing a course or from online tutorials.
Once you think you can do it, search for a client to help him or her with marketing NFTs. Try your first project with solo NFT artists.
You can search with the NFT hashtag on Instagram and find people who have posted requirements for NFT marketing with lesser followers.
Reach out to them and help them with marketing their NFTs.
If it strikes, then you can try promoting that through different social media platforms. Even you can start by creating a page and sharing it to promote your brand.
With time, you can attract more clients and hence can start an NFT marketing agency as well.
Generating NFT avatars
There are many collections with around 10k NFTs that are known as NFT avatar collections.
Every avatar collection uses a base image with those 10k images holding the common properties with the base image.
The designers make these NFT avatars by combining different layers with multiple characters for each layer.
For instance, they create the face layer by designing square, circle, or triangular face images. The hair layer can have soft, curly, or coiled hair images.
Once the design is complete, the next step is to combine unique characters for creating 10k images.
In most cases, they took the help of someone else to implement this step. You can get these offers from various popular freelancing sites like Fiverr.
It’s a very simple task if you are aware of the right software to complete that like the NFT-Generator.
Believe me; these small tasks can help you to make thousands of dollars every month.
This thing is similar to the thing that the name implies, ‘airdrop.’ Lot of new NFT projects want to increase their community by doing NFT airdrop.
This means they offer free NFTs randomly. Yes, luck is a factor in this case because chances of receiving free NFTs are limited.
However, many such projects arrive every week, and thus, following all of them can increase your chances.
You can try out Twitter and Discord to keep a track of such projects. Just search for those NFT projects that have not done the airdrop yet and follow them constantly.
Are you not getting enough luck to achieve NFT airdrop projects? Then, go for some minting NFT projects.
You may not be aware of the mint process, let’s know in a nutshell.
Minting is a procedure enabling the creation of a crypto collectible or digital asset from a digital file on the Ethereum blockchain.
You can easily search for these projects that support more than 1k NFTs. Go for such a project having greater potential and community.
The term ‘floor price’ is the price for minting an NFT and after doing the minting process, they can be listed on the marketplace at a higher profit.
Please conduct proper research before selecting those NFT projects because they can be scams sometimes.
You can earn money from NFTs in a recurring manner whenever your NFT is traded on the secondary market.
The original creators of NFTs can set a royalty fee through which they can earn passive income while the owners change.
For example, if a creator sets 10% royalty fees on an NFT, then he/she will always receive 10% of the sales price during the resale of that NFT.
These royalty fee percentages are determined at the time of the minting process.
Also, this process is governed by smart contracts or digital computer programs that remove your worry to manually track it as a creator.
Advantages and Disadvantages of NFT investments
By now, you have almost got the underlying basics about NFTs and also some of the best ways on how to make money with NFT.
Let’s know the pros and cons that NFTs include.
Pros of NFT –
- Growth of NFT value: Since NFT is a type of investment; there are always chances that the NFT values will grow in the future.
- Recording of data: Manually, it’s a tough thing to maintain ownership of something because people will always try to copy and claim them as their own. As NFTs are digital contracts, they make this thing secure and easier.
- Immutability: These tokens are non-fungible and hence they are irreplaceable once verified on the blockchain. So, the intrinsic value of authenticity gets fixed.
- Income source for artists: NFTs are a blessing for new artists because they can create NFTs of their artwork and list them on the marketplace. As the NFTs gain more value, their revenue stream will also increase.
- Chances of growth: Blockchain technology is the new craze that is believed to bring a change in consumer behavior like the Internet. Hence, NFTs can gain more popularity in the next few years and you can be the ultimate gainer.
Cons of NFT –
- No surety about value: There are chances of NFT value growth but still they are confusing assets to determine whether they are good for long-term investment.
- Physical art can’t be created into NFT: NFTs are mainly meant for digital artworks and physical art forms can’t be converted into NFTs.
- Can’t control copies: NFTs make sure that other people can’t change the ownership information. However, copies are still available on the Internet and people can still take printouts of them.
Frequently Asked Questions (FAQs)
How to buy NFTs?
A: The two most common doubts regarding NFTs are how to buy NFTs or sell them. Let’s know how to buy NFTs. Various websites are there that allow you to buy NFTs. Though most websites allow you to buy NFTs with cryptocurrency, some also allow using credit cards. As per the currency of your choice, you need to create a wallet and Blockchain.com is one of the popular platforms that allow you to do so.
Once your identity is verified on these platforms, it’s time to buy some cryptocurrency like Bitcoin as per its current market price. Then, you can check out some marketplaces like OpenSea to buy NFTs. However, some fees are involved depending on the currency and the amount of congestion on the blockchain.
How to sell NFTs?
A: After you buy NFTs, it is also important to know how to sell NFTs. You should have the original file for which NFT is created. Then visit Rarible.com and click on the ‘Create’ option for the creation of the sales page. There, you need to put down the sales price as per your choice in terms of cryptocurrency.
Second, you can include royalty fees though it is an optional field. It’s a better idea to include some royalty fees as explained earlier so that you can earn whenever they are resold. However, Rarible.com charges 2.5% of the sales price, so ensure to set the royalty fees higher than this.
Finally, you need to pay a gas fee for the listing and also connect to your crypto wallet you made earlier during buying.
Is there any proof of high-profile NFT sales?
Yes, there are many such examples. Jack Dorsey, Twitter CEO sold his first tweet as an NFT which ended up for $2.5 million. Chris Torres, the popular Nyan Cat gif’s author created an NFT of his animation that ended up selling at $590,000 in the Ethereum cryptocurrency.
NFT is an experiment of blockchain technology and like other experiments, the future of NFT is also unknown.
But, various studies and researches have indicated that the future of NFT is bright. A lot of high net-worth investors have started investing in NFTs and hence that is a positive sign.
NFTs guarantee that any kind of creativity has value and thus that can be a blessing for the new artists.
We hope that this guide on how to make money with NFT is useful and informative for you.
NFT investment has a lot of potentials to grow your money and also make your creation unique or secured.
Thanks for landing here and staying till the end, all the best!