NFTs are the digital assets that are making waves all over the internet. Right now, if you are not involved in cryptocurrency, there is a high likelihood that you have not been following the trends.
Cryptocurrencies and NFTs are closely linked, so before you learn how people are making money with the use of NFTs, here are the definitions and main difference between NFTs and cryptocurrencies:
NFTs stands for non fungible tokens. They are encoded digital assets which could range from works of art like paintings, to other things like ebooks, songs, videos, photographs, and so much more.
Each NFT has a special code unique to it, which makes the tokens one of a kind.
Cryptocurrency is also a digital digital asset. It is a form of money or currency that is not regulated by the government and can be used for buying and selling in online marketplaces.
Main Difference Between NFTs and Cryptocurrency
Even if NFTs and cryptocurrencies are built with the same technology, fungibility is their main difference. Just like your regular money, cryptocurrencies are fungible. This means that they can be exchanged for one another as long as the tokens involved are valued based on their different levels of worth.
NFTs are non-fungible. This means that they cannot be traded for one another like cryptocurrencies since each one is unique with its own digital identity. No two NFTs are the same.
Here are the Different Ways to Make Money with NFTs
Some people are into NFTs because of the trend, but there is a huge amount of money to be made if you take it seriously. Here are some of the proven ways that you can use to generate income with NFTs.
Playing NFT Games (Play-2-Earn)
If you are already a gamer, this is a guaranteed way to make good money since you already know how to win. If you are not into games, then see it as a chance for you to make money while enjoying yourself.
If you are skilled at role playing games, you could win tokens with each victory you get in a war. Or if you rob a bank and loot a good amount of money, the game’s NFT equivalent of that loot will be yours in reality.
All the popular games have started doing this and many people are earning big. You can also join them because NFT games are here to stay.
Buy Low, Sell High
Most people refer to this method of making money via NFTs as flipping because it is usually a short term deal. You can buy an NFT when it is worth very little, then hold it for a short while to the point that the value grows.
Depending on how much more your NFT is worth, you could make anything from 10% to 100% profit. In fact, there are cases where you could make a lot more than 100% profit when you flip an NFT.
It majorly depends on the NFT’s utility, general appeal, popularity, and a few other factors in the NFT marketplace.
Invest in Businesses that are into NFTs
Since the crypto and NFT market made a huge boom last year, more companies are incorporating it into their business and as a particular NFT grows in worth, the company’s profit grows as well.
You can tap from that profit by investing in such companies and getting good ROI for yourself. This method is quite safe and serves as a substantial source of passive income for you.
HODLing Your NFTs
If you are not familiar with crypto trading, you will easily assume “hodling” is an incorrect spelling of “holding”. But that is how crypto traders say they are keeping a particular token until it reaches a very high value.
In NFTs, flipping is very similar to hodling, but in this case, it is not a short term approach. To make money by hodling, buy your preferred NFT and do not sell it no matter what.
Many people consider this the best approach because when you eventually sell off that NFT, it will be worth millions more than the original value you got it. No wonder it is the most popular form of making money with tokens right now.
Before you HODL, keep in mind that you have to be patient because a lot of things would make you want to sell at the wrong time. It could even take years to reap from this method, but it will be worth the wait.
Investing in Newly Minted NFTs
Most NFTs are not really worth much when they are newly minted, but in the next few weeks or months after that, their prices will go up and a lot of people will want to buy them.
By carefully detecting new NFTs that will grow, you will be able to invest wisely and buy them at a minor cost when compared to what their prices would be in a matter of months.
For example, between 2017 and 2021, cryptoPunks NFT jumped from 34 dollars to about 24 million dollars. You could invest in the next cryptoPunks and smile at your bank account if you use this method to make money via NFTs.
Mint an NFT of Your Own
With this method, you can make your own NFT and put it up for sale. So instead of buying an NFT to make money, you will be making an NFT for people to buy so you can make money.
It doesn’t matter what you do, as long as you are good at it, you can mint an NFT and put it up for sale.
start by digitizing your creation. It could be a painting, a song, video, ebook, picture of a meal you made — anything at all. Once your asset is digitized, you can put it on the blockchain and trade it through any of the genuine NFT marketplaces.
If you are a creative person, this is the option you should really consider because you have all it takes to mint the next NFT that will be worth millions.