NFT or non-fungible token is all over the internet; everyone is raring to know about it. Investors or creators are reaping high revenue and have changed their lives forever. Recent sales of various NFTs broke the internet, changed the perspective of digital collectibles, and became a striking profitable business in history.
NFTs are cryptographic tokens based on blockchains and used for real-world items like music, art, video, tweets, real estate, etc. in the virtual sphere. The majority of a chunk is now grooving in to take a ride. For those who don’t know how to get started and have been watching from far, this article will let you know about various ways of making money with NFTs.
Ways to make money with NFTs:
There is not a single way to make money from the non-fungible token. We have outlined the ways to make money from NFT as digital assets are approaching the mainstream.
1. Create Art to Sell as NFTs
It’s time to be creative. This effective platform is a boon for artists or creators to monetize by trading their art. It is believed that in the world of art NFTs are bringing a true revolution. Create digital arts, images, videos, properties, memes, anything and sell it as NFT and earn revenue for your creation.
There are platforms like Appy Pie that lets you create and trade your digital asset. Other marketplaces like Rarible, OpenSe, and many more let you list your NFTs and help in raising your income after charging a small fee.
Let the artistry flow and create astounding digital assets or transform your digital formation into NFTs and put them on sale at the price you want.
2. Build a Community Project with NFTs
A group of people who actively collect and trade NFT projects is known as non-fungible tokens community. Bitcoin and many crypto projects have a devoted community. Building an effective community is the bedrock of a successful NFT project.
First, you need to define your valuable asset, how they differ from others, your collectors, and the value you offer. Choose a social channel to connect with NFT community, Twitter, Discord are good options for that. Then create a fair launch: the purchase of NFT per transaction should be limited.
Nothing happen overnight, keep spending time in your advertisement and helping other creators.
3. Earn Royalties on NFTs
Royalty is a phenomenal way to get a consistent income. Whenever there is a new buyer you can make money by NFT royalties. Likewise, you will earn continuous income even after selling your asset.
Let’s assume you have settled a 15% on NFTs, every time it will get sold to a new owner, you will attain 15% of the total sale price. The process is automated, so it is easy to handle as there is no need to track payment manually.
4. Invest and Trade NFTs
There is a variety of marketplace that let you purchase NFT. Investing in NFT is explained in simple steps below:
- Zero down on an NFT of your choices like music, art, or anything you like
- Look for the crypto needed to buy that particular NFT as there are specific requirements of crypto wallet.
- As to send, obtain, and store digital assets you need to open and fund crypto wallet.
- Buy NFT at a fixed price or place a bid at a virtual auction and wait till you win your desired NFT.
After owning an NFT you can display it for viewers, keep it as collectible, use it as a digital project, or list it for sale. For putting NFT on sale you will be charged fees by marketplaces. You can upload your digital asset to a marketplace that supports the blockchain of NFT. Marketplace verifies the asset after uploading then you can either list it or choose for an auction-style sale. Once sold it transfers NFT to the buyer and the funds to your wallet.
5. Stake Your NFTs for Yield
NFT staking is altogether a new way to monetize in the crypto world. There is no need to sell asset collections but lock them in staking platforms to get revenue. The staking of NFT depends on Proof of Stake mechanism.
If you want to stake an NFT, the platform regulates its worth based on rarity and appears as APY (annual percentage yield). If you wish to have higher APY you need to have rarer NFT. The value of a non-fungible token also depends on the capability to generate royalties.
The two important staking platforms are:
- Only 1: It is based on social engagement and in it, multiple users can stake their native currencies. If there is remarkable social media engagement of the creator with the staker then higher APY is offered.
- Onessus: On this platform, 80% APY is offered on NFT staking.
There are a few other platforms also like MOBOX, Zookeeper, and Zionverse.
6. Provide Liquidity to Earn Yield
The term liquidity means the company can transform its assets into cash. Investors are interested in investing in those companies that can liquidate shares for cash fast. Here, buying NFT is different from traditional retail investors. NFTs trading market is in the blockchain network using that platform’s currency. The trading of NFT in return for cash is the liquidity of NFT. Buyers, in many cases, swap a token for another which creates a problem in liquidity as there is no transaction.
As the price of the asset escalates, the liquidity also increases. Network liquidity depends on the network’s size and amount of transactions and the liquidity characteristic of that system.
7. Rent Out Your NFTs
Suppose your asset has a utility, and then you have an option to rent it out. Here’s a question that may come to mind as to why anyone wants that asset for a fee. Well, some non-fungible tokens have exclusive privileges. Some may want to use it as a profile pic, while others may use it in the game; it depends on the kind of NFT.
Giving your digital asset for rent is a lucrative business. As of now, there are not many options for NFT rental marketplaces, but NFT is the most prominent.
We hope you found this information helpful. Tokenization is evolving as a new trend, and there are many ways to make money with NFT that will take you by surprise. But most important of all is to be aware as it comes with its own set of risks. People new to the industry should pay extra effort to have a safe business away from scammers. Before diving into the industry make sure to research carefully.