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The world of digital art has seen an incredible boom, and many people have made a fortune investing in art NFTs. This new asset class has proven very profitable for some investors, but many are still wondering how to enter this booming universe. If you want to know how to make money with NFTs, this guide is for you.
The arrival of Web3 is imminent, and soon we will probably all meet in the metaverse. Of course, NFTs will be an integral part of our new virtual world. This is why it is important to understand how the non-fungible tokensand above all, to be able to determine the most profitable NFTs.
Are you ready to start your adventure in the world of NFTs? Check out our five safe ways to make money with NFTs.
Contents
- State of play of the NFT market
- How to make money with NFTs
- Place your NFTs in staking
- Resell your NFTs
- Rent your NFTs
- Earn royalties with NFTs
- Play games nft games to earn cryptocurrencies
- Anyone can make money with NFTs
State of play of the NFT market
The non-fungible tokens (NFT) are becoming increasingly prominent within the crypto industry, and their popularity has exploded over the past year. Simply put, NFTs are blockchain-based digital assets. Currently, most NFT projects are hosted on the network Ethereum. According to a report by DappRadar, the sector’s transaction volume has already reached more than $23 billion.
Unsurprisingly, 2021 was by far the best year for this new segment of crypto. The most expensive NFT ever sold to date is a work of art by Beeple titled “Everydays: the First 5000 Days”. In March 2021, the work sold at auction for $69 million. In the same year, OpenSea achieved a transaction volume of over $16 billion. Thus, it has become the NFT marketplace most used by investors and artists.
NFTs can match almost anything. But often they represent files like images, videos, audio, and sometimes even physical objects. They are often used to give ownership rights on an object, data or files associated with a token. They can also be bought and sold in specialty markets, which we’ll talk about later in this guide.
The NFT industry has seen a dramatic increase in average transaction size and total value sent. This means that their value increases as they gain new users. The launch of the new collection of Bored Apes Yacht Cluba famous group of NFT, also proves this evolution.
NFTs are traded on specialized marketplaces like OpenSea or rare. NFT creators, collectors and investors list their assets on these marketplaces and retain full ownership until they are purchased by someone else.
How to make money with NFTs
Since this sector is relatively new, few investors and collectors know the best practices for investing in NFTs, let alone all the potential they offer. NFT marketplaces can be a great source of income if you know what you’re doing.
Here we will share with you five ways to make money from the NFTs you already own :
1- Stake your NFTs
Staking is the main advantage of combining NFTs with decentralized finance (DeFi). As you probably already know, you can generate very interesting income (in the form of returns or interest) by staking your crypto assets. Thankfully, staking is no longer a crypto-only feature.. Indeed, from now on, NFTs can also be placed in staking and offer passive income to their owners. Concretely, staking refers to the locking of digital assets for a certain period of time with the aim of obtaining rewards.
Some platforms offer you the possibility to use several types of NFT. Others require you to purchase their native NFTs in order to receive rewards in the form of staking tokens.
Some of the platforms that allow NFT staking include:
Sometimes, part of the rewards granted to “stakers” can be given in the form of governance tokens. Token holders are therefore granted voting rights that allow them to participate in the development and future evolution of the platform and its ecosystem. Note that it is possible to reinvest the tokens you earn from NFT staking into other yield protocols. Did you think about staking when you started looking how to make money with NFT?
2- Resell your NFTs
Another way to make money with NFTs is the most obvious method: resell them.
The resale of NFT (NFT flipping in English) consists of buying an NFT when the project is brand new on the marketusually during the strike phase (minting Where emission)then resell it at a higher price on a specific marketplace.
The creators of NFTs are not the only ones with the right to sell them. Many crypto investors see NFTs the same way they see the cryptocurrency trading or shares. And many of them have already managed to generate gains by buying and selling NFTs.
Price appreciation and depreciation are also factors to consider. So you can calculate your profit and loss by adding additional costs such as gas costsmarketplace listing fees and royalties paid to the original owner.
However, be prepared to invest time and effort in research. In effect, find the most profitable NFTs to resell them requires in-depth knowledge and understanding of the crypto market.
3- Rent your NFTs
Renting your NFTs is a great way to make money and generate passive income. Especially if you already own highly coveted assets.
For instance, some games NFT cards allow players to borrow cards to increase their chances of winning. Smart contracts define the terms of the agreement between the different stakeholders. Users can usually choose the length of the rental contract, as well as the price of renting the NFT.
ReNFT is a leading platform in the NFT rental segment. It allows users to lend or rent NFTs. Lenders can set maximum borrowing periods and daily rates. Currently, they can charge between 0.002 and 2 Wrapped Ethereum tokens (wETH). Additionally, fans of the fantasy football game can use platforms such as FootballCoin to rent their limited edition NFT Footballer Cards to earn more crypto.
4- Earn royalties with NFTs
Did you know that NFT creators can set royalty fees when their NFTs are sold on the secondary market, as a percentage of the selling price? This means that if you are an NFT creator, you can still earn passive income after selling your NFT for the first time.
In effect, this allows creators to still benefit from a portion of the price of future sales of their NFTs. If, for example, the royalty rate for digital artwork is 10%, the original creator will receive 10% each time the artwork is resold. Note that each NFT marketplace allows you to set a custom royalty fee when you first create your NFT.
The whole process of collecting NFT royalties is simple and does not require any specific expertise. Everything is done from the interface of the NFT marketplace you are using. As with most parts of the industry Challenge, smart contracts are responsible for the entire royalty distribution process. As a creator, this means you don’t have to track payments or manually enforce royalty terms.
5- Play nft games to earn cryptocurrencies
NFT-based video games could be the future of NFT technology. Admittedly, so far none of the nft games only became world famous. However, the potential for using NFTs in video games is immense.
It is well known that some gamers are willing to spend a lot of money on virtual goods. These markets, whether it’s World of Warcraft gold or Counter-Strike skins, are worth billions of dollars. If major video game companies start selling in-game items as NFTs, the impact would be huge on the gaming and blockchain industries. But knowing itHow to make money with NFTs in blockchain games is a little more complex.
Most of the NFTs we see in the markets today are digital works of art. That said, gaming NFTs are also starting to gain traction. These assets can be used in the games they belong to or in specific platforms. Indeed, most games that use NFTs are play-to-earn games that allow you to earn crypto.
In the years to come, we expect to see many more projects in this sector. That said, we’ve already seen the phenomenal success of games such as Axie Infinity, Plant vs. Undead and CryptoKitties.
Gaming NFTs offer a much better experience than digital trading cards and interactive NFTs like virtual works of art. Indeed, video games use tokens which can be extremely complex and interactive.
By truly owning your in-game assets, you will of these gaming NFTs an investment and not an expense for your leisure. Play the game, use NFTs to generate more crypto, and sell them when you’re bored or want to change them. It’s that simple !
Anyone can make money with NFTs
Now that you know how to make money with nftskeep an eye out for NFTs that can be staked, rented, or used as in-game assets. However, always make sure to look for the most profitable NFTs before youinvest. This should be your priority.
If you are an NFT creator, start planning all the items for your next NFT collection. And don’t forget to set an appropriate royalty fee for your digital work.
Finally, be aware that NFTs are still in their infancy. With the imminent arrival of metaversewe expect to see a lot more options and features on marketplaces and NFT platforms.
Disclaimer
All information contained on our website is published in good faith and for general information purposes only. Any action taken by the reader based on the information on our website is strictly at his own risk. In the Learn section, our priority is to provide high quality information. We take the time to identify, research and create educational content that will be useful to our readers. In order to maintain this level of quality and continue to create valuable content, our partners may pay us a commission for placements in our articles. However, these commissions do not affect our processes for creating objective, honest and relevant content.
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