NFTs are the talk of the world. From top brands and small businesses to celebrities and common individuals, everyone is raving about them and gearing up to join the race. In 2021 destitute, the NFT market exceeds the $12 billion mark, up from $162.4 million at the start of the year.
Though some are making a big fortune with NFT, there are alleviate many on the side-lines devising to get the most out of it. If you are among those, this beginner’s guide from tech safari is all you need to know how to make money with NFT comfortably and quickly.
NFT: – Meaning
NFT refers to a non-fungible token. A non-fungible token is a digital asset that cannot be bartered or duplicated. One way to think of these tokens is as a digital equivalent of artwork from a private assortment. Each piece of art in the collection is one-of-a-kind and worth a recognizable amount.
An NFT, like a portion of art, can be sold for cryptocurrency or fiat. However, just like bitcoin, the token’s asset transfer is registered in the blockchain. This establishes the ownership of a clear-cut NFT.
Each NFT is allied to the original owner’s digital or, in certain cases, physical asset. Technically, any digital object can be transformed into an NFT. Anybody can turn famous tweets, Facebook posts, Instagram photos, and more into NFTs and sell them — that’s the beauty of NFTs.
What Gives an NFT Value?
Consumer interest commutes the value of an NFT, just as it does for works in our hypothetical art collection. The rarity and base of interested buyers are major factors that consequence how much they are worth, just as they do with trading cards.
Although an image can be transformed into an NFT, no prohibition prevents it from being copied or shared. However, the blockchain stores and clearly shows who owns the asset — control of NFT can’t be faked. The elated feeling of having exclusive ownership is one of the major drivers of its value. For the most part, the way people earn money and acknowledge the value of their NFT is through resale.
Create and Sell NFT
Do you consider yourself a creator? Do you have any creations that you’d want to auction? Selling your works as NFTs can help you earn extra money.
You can develop and sell almost everything digital as NFTs. Original audio samples, films, memes, music, digital art, and much more have been sold for an excessive amount of money in the past. A New Yorker marketed his vapors as NFT!
So go forward and do it. When it comes to how you earn money from NFT, it’s only limited by your fantasy.
How to make an NFT?
NFT enthusiasts, developers, and entrepreneurs, over the years, have stated the question, “how to frame non-fungible tokens and monetize them”. Before we proceed to how to create NFTs, bear in mind that non-fungible tokens have descriptions that are unique to them. The procedure of creating NFTs is known as “Minting”.
The following are the phases that must be followed to make NFT:
- Before attempting to create or even sell an NFT, assure you know what you’re getting into and you understand what a non-fungible token is.
- Research about NFT platforms and marketplaces and choose where you wish to create and sell.
- After that, associate the crypto wallet and set it up.
- Finally, begin building your first non-fungible token and classify it on the platform of your choice.
How to make money with NFT?
There are different ways to earn money from NFT which are as follows:
- Rent Out
The direct and efficient way to make money with NFTs is to create and sell them. Yes, you can create and sell anything digital such as arts, images videos, memes, properties, etc., as NFTs. If you have a notch in creativity, you can monetize all your formations by selling them as NFTs.
You can create and sell your own NFTs collection using platforms like Appy Pie, and make money with your digital assets. You can even list your NFTs on other marketplaces such as OpenSea, Rarible, etc., for a small fee and escalate your income.
- Trade NFTs
Trading NFTs is a smart and easiest way to make money easily and efficiently. You can purchase an NFT collection and make a profit by selling them at higher rates.
However, trading NFT is not an easy task. The trick lies in selling them at the right time, which directly depends on various factors like what the NFT is why you bought it, and if there’s any other interest in the item. You can quickly research the internet and different marketplaces to determine these components.
Before you go ahead trading NFTs, you need to keep in mind that not all NFTs are created equally. Some are worth millions, while some are meaningless. So as a trader, you need to keep a close eye on every prospect for making good money in future resale.
- Rent Out NFTs
One of the best ways to earn money through NFTs is to rent out them. Renting out NFT can be a good source of passive income for the NFT creators and collectors. The fascinating thing is that you can use the NFT for the long term, without having to create new ones.
You can rent out your NFTs in games, or on any other platform, that allows users to borrow NFT cards. You can even use a program like reNFT to rent or lend NFTs to others.
No need to worry, all the NFTs that you rent are administered by smart contracts, however, the NFT owner has the privilege to set their preferred duration of the rental accord and the lease rate for the NFT.
- NFT Gaming
The NFT-based video games are also one of the known methods of making money through NFTs. Some games allow you to purchase in-game items as NFTs and trade them, helping you earn money from them. Still, their number is bounded for now.
With the hype about NFTs, there is certainly no doubt that you will be seeing more games shortly that will be allowing NFT trading.
- NFT Royalties
Setting up a royalty on your NFTs is a great way to ensure a consistent flow of income. By NFT royalties, you can earn money whenever your NFT changes hands on the secondary market, meaning you will repeatedly get income even after selling your creations to collectors.
For an instance, if you set a 10% royalty on your Non-Fungible Tokens, you will receive 10% of the total sale price each time your digital asset is exchanged to a new owner.
What else, since the whole process is automated, you don’t need to enforce your royalty terms or track payment, manually. So set the royalty and earn every time someone buys your NFT.
- Licensed Collectibles
Turn physical collectibles into NFTs, sell them, and start making money in no time. Yes, you can securely store your physical collectibles in the form of digital assets on the blockchain and get the same or higher price on them.
So far, sports cards are the most famous type of licensed NFT collectibles. However, brands are slowly connecting with the NFT bandwagon with their licensed collectibles to make the most out of it.
One of such brands in the NBA recently introduced its NFT card collection on the market. Looking at the craze, it’s the right time to disciple your physical collectibles into Non-Fungible Tokens and put them up for sale.
- Stake NFTs
Staking NFT is yet another authorized way of earning money through NFTs. Staking NFT mean depositing, or “locking away” digital assets into a De-fi protocol smart contract to generate a Yield.
In simple terms, staking is the process of putting up digital works in the form of a “stake”, and assigning them to those willing to maintain their upkeep, while providing you a share of the reward for your NFT.
You can use a wide spectrum of platforms like Kira Network, Splinter leads, Only1, and NFTX, to stake your Non-Fungible Tokens and make passive income out of them.
To conclude that the future of NFT is still unknown, but one thing is sure it is not just another quickly passing crypto trend. NFT is here to stay and has the capability to become mainstream.
Frankly, NFT is still undervalued due to its limitations in the art and gaming realm. However, it is expected to grow by leaps and bounds as more and more individuals and businesses are deciding to enter the Non-Fungible Token System