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NFTs have made people millionaires and every day we have lots of people delving into the NFT world. The growth of NFTs this past year has paved new ways to make money.
From trading them to staking them, and lots more, here are 5 ways to make money with NFTs.
But first, let’s take a look at what an NFT is exactly.
What is an NFT?
NFT stands for “Non-Fungible Token”. Non-fungible means ‘unique”, therefore, an NFT is a unique digital asset that cannot be changed or duplicated. Every NFT created is stored on a blockchain network and they have a unique identity.
They can come in the form of digital art, poems, music, GIFs, videos and much more.
NFTs are sold for cryptocurrency, and the token’s asset transfer is recorded in the blockchain. This establishes the ownership of a specific NFT.
5 Ways To Make Money With NFTs
1. Minting Your Own NFTs:
Minting refers to the process of taking a digital asset and placing it on the blockchain. Once the digital asset is minted to the blockchain, it can then be traded on the NFT marketplaces, allowing you to monetize your creation.
With the growth of the NFT space and the increase in large numbers of creators, there is competition. To make your NFT stand out and generate sales, you need to make sure your asset has value and such value can be recognized by people who would then buy into your project.
Read Also: COMPLETE GUIDE ON HOW TO MINT NFTS
2. Trading NFTs:
Asides from creating your own NFTs, and minting and selling them, you can also trade NFTs. This involves buying other creators’ projects and reselling them for a higher value, therefore, making a profit.
In less than six months, Pablo Rodriguez-Fraile, a Miami-based art collector, flipped a Beeple digital art piece for nearly 1,000 times its original price.
Read Also: HOW TO SELL NFTS FOR NAIRA
3. Staking NFTs:
According to Bybit Learn, NFT staking refers to locking up non-fungible tokens on a platform or protocol in exchange for staking rewards and other benefits. Staking NFTs allows holders to earn an income from their collection while maintaining ownership.
While some platforms allow you to use any NFT, others require you to buy native NFTs to gain staking token incentives
You might also like: TOP 10 BEST CRYPTO STAKING PLATFORMS IN 2022
4. Royalties:
Even after selling an NFT, a creator can earn passive lifelong royalties from it. During the minting process, the creator can set their own royalty percentage, which means that any secondary market sales will provide the original creator with a payment.
Most NFT royalty levels are set at 5% or 10%, although some do go higher than this.
5. NFT Play-To-Earn Games:
This is another way to earn money with NFTs. You can do this by earning interest on the rewards you make in NFT play-to-earn games.
These rewards are usually denominated in the platform’s native token, which means that they can be spent on in-game items or exchanged for FIAT.
Conclusion
The concept of an NFT does not end with a pretty digital art of exclusive music and so on, you can also make money with them in different ways.
Jump in on the NFT frenzy and start making anything from a passive income to generating millions.
Ensure to do your own research as this article is not financial advice and ways to make money with NFTs are not limited to this list alone.
