NFT is in vogue today. Renowned gaming companies such as Epic Games have decided to invest in this type of blockchain technology, predicting a lucrative future.
The findings suggest that it is quite easy to make money trading these virtual objects. But is it true? Can beginners really make money with NFT?
If you are curious to know how to make money with NFT, keep reading and learn all about this phenomenon.
What is NFT
Non-reciprocal tokens, also known as NFTs, are digital assets that exist on the blockchain and cannot be duplicated or altered. From a certain perspective, NFTs are unique and inimitable works of digital art.
Trading NFTs and selling NFTs is possible on legitimate trading platforms for cryptocurrencies or fiat money. In short, these tokens are the digital equivalent of works of art in a private collection.
NFTs are usually created for collections, but not all NFTs in collections are the same. However, each piece of art in a collection is unique and has its own price.
Moreover, because each piece of these digital assets has an original owner, NFTs work as proof of ownership of the work.
Every day it is getting easier and easier to make money with NFT, although it requires special knowledge.
One of the first NFT sales to hit the news was Twitter CEO Jack Dorsey selling his first-ever tweet as an NFT. His NFT ended up raising $2,500,000.
Create and sell NFTs
Anyone can create their own NFTs if they take the time to read the instructions below.
When your artwork is ready, you can put it up for sale.
Creating an NFT
Keep in mind that non-reciprocal tokens are unique and cannot be duplicated.
Users should keep this in mind when they create their first NFT.
For stable earnings on your own NFT, experts recommend creating art collections.
Most of the bestselling digital tokens are in the form of digital collectibles.
Therefore, prepare several pictures at once, which will later be converted to NFT.
Before building an NFT collection, you must choose one of the popular platforms (we list them below).
Next, click the “New Item” button. In this step, you will upload your artwork.
NFT sales involves placing your NFT collections on the right platforms.
Once the collection has been added to your chosen site, you must start the minting process.
Minting your digital asset
Once you’ve created your digital assets, it’s time to release them to the proof NFT marketplace.
That is, take a piece of artwork and put it on the blockchain.
To do this properly, keep the following tips in mind:
- Before creating an NFT, make sure you understand what a non-reciprocal token is.
- Research NFT platforms and markets and decide where you want to build and sell.
- After that, connect the crypto wallet and set it up.
Finally, create your first non-reciprocal token and place it on the platform of your choice.
Keep in mind that sometimes you need a pair of tokens to join the pool and the account on the platform you are going to use.
If you’re wondering how to find out if your NFT is for sale, you’ll need to check the sales page for updated offers on the digital asset you’re selling.
This is because most sites generally do not use email to report this.
Choosing NFT platform
NFT trading sites are sites where you sell your creations, but not all of them offer the same terms and benefits.
There are various sites where you can trade your NFTs. Below are some places where you can sell your in-game NFTs.
OpenSea is a major NFT platform where NFT creators can create and sell their digital works.
This marketplace offers you the opportunity to trade in several categories, including collectibles, art, photography, music, and sports.
Mintable is a platform that allows you to easily mint your NFTs and price your NFTs.
You can also use advertising to draw attention to your products and create a store designed specifically for you.
Mintable has a great 24-hour customer support team that will answer all your questions.
SuperRare is a platform focused on NFT trading. Here you can buy NFTs created by both the world’s best and not-so-famous artists.
This platform works as a secondary market for artists who want to diversify their work and earn passive income.
If you want to earn rewards and you have some talent for drawing, painting or you are a capable graphic designer, this is the site you are looking for.
How to market your NFT
Just like the physical stuff, promoting and bringing attention to digital assets is hard work. To get any potential profits and make more money than you think, check out this step-by-step guide below.
Use social media
Using social media channels and Reddit to create themes is a good way to draw attention to your digital content.
Since NFT trading is a new concept, you will have to spend a lot of time educating people on what NFTs are and how to buy them, and Facebook posts are great for this.
Although the value of NFT depends on the relevance of your own artwork, a good marketing strategy is a word-of-mouth.
Communicating with family, friends or team members is a good way to share your NFT and make it known.
Share on your social networks with exclusive access or in your actual social circles.
Renting out the NFT
Just like any other property, you can rent out NFT for passive income. This system works as if you were renting out real estate.
The people who rent out your NFT will give you a predetermined amount of money for a certain period of time.
But why would anyone want to rent your NFT?
There are several reasons for that. Sometimes they just want to have a nice avatar for their games.
Other times, they might use your NFT to attract users to their profiles or social media accounts.
They can also use it for a campaign of sorts. The ideas are endless!
When your lease expires, you get your property back. It’s a fun way to not have to sell the property and generate income.
Buying at a low price and selling at a high price is one of the foundations of any inversion. In this type of trading, the cornerstone is buying goods that may soon rise in value.
To do this, you need to have great instincts and deep knowledge of the subject for the prospects of making money on future resale.
Reselling NFTs is no exception to this rule. Since NFTs are available for trading, you can invest some money in buying a certain number of NFTs that you think will be in high demand in the future.
In any case, the big difference between reselling and investing in conventional ways, such as stocks, is that reselling is a short-term approach.
Other strategies, such as the HOLD strategy, take longer to make a profit.
Finding the best alternatives to buy and sell NFT in a short period and get a good profit is not an easy task.
The competition in NFT markets is very tough nowadays.
Then study the market and check the following:
- The usefulness of the digital asset.
- Community support and development behind NFT.
- Visual appeal.
You can think of NFTs as stocks, and just like ordinary stocks in the market, you are free to trade them.
In that sense, if you have a collection of NFTs, you can sell them at a higher price than what you paid.
In this way, you will miss out on the minting process.
Wealthy investors are now investing huge amounts of money in NFTs, and you can join them by buying and selling them.
For example, Pablo Rodriguez-Freyle, an art collector, sold a Beeple digital artwork for 1000 times its original price.
As a collector, you must keep in mind that not all NFTs are created equal.
Some NFTs can be worth millions of dollars and be part of a revolutionary future, while others may be worthless.
Either way, if you want to go through this trading system, knowing when to sell NFTs in blockchain auctions is fundamental.
Yes, trading NFT may seem risky, but the potential profits can exceed the risks.
Betting on the NFT
NFT betting is another lucrative way to get rewards for your NFT.
Staking is storing digital works as “stakes” and taking advantage of decentralized funding protocols (Defi).
You then entrust your works to someone who is willing to maintain them properly. In exchange, you will receive a commission and somehow earn interest.
Creating Games on NFT
You may not know this, but NFT is a cryptocurrency that you can use to buy in-game items in blockchain-based games.
Currently, there are some very expensive collectible items, such as the ones you can find in the CryptoKitties game.
Several promising NFT startups are emerging that are investing their efforts in making games based on blockchain and NFT.
Gala Games and Calvarian Games are two NFT developers and startups working on games where gamers can buy and sell digital tokens.
Just keep in mind that since gamers are free to exchange NFTs, any transaction will be entirely their responsibility.
NFT’s “Play to Earn” games
Another way to benefit from this blockchain experiment is to start with NFT’s “play to earn” games.
These games now integrate P2E features that allow you to monetize your gaming experience by earning rewards for skilled gameplay.
Typically, these rewards can be exchanged for fiat money or spent on in-game items.
Using NFT gaming as one of the best ways to make money has become very popular today, as several platforms have been released in recent years.
Simply put, you will get NFT as a reward that you can trade freely on various trading platforms online.
If you are lucky and you know exactly what to do, you can trade your earned NFT on the secondary market and make good profits.
Royalties are a great way to make money as a passive income when you easily sell an NFT and then that artwork is sold again.
Each time the artwork is sold, you will receive a percentage of the royalty. During the timing process, you can set the royalty amount. This way, any marketplace will provide you with payment.
The vast majority of expensive NFTs have royalties built in. Not as expensive NFTs, or directly some low-cost ones, may also be built in with royalties.
Evaluate your NFTs in the NFT Marketplace
At this point in the article, you may wonder: how can I evaluate my first NFT as a content creator?
This is an important question that will help you negotiate smart contracts with marketplaces.
Of course, you can set your desired price, but it is important to set it according to supply and demand, as well as the value of your artwork.
The average price of NFT ranges from $150 to $900.
The price may vary depending on various factors, such as increases or depreciation of the price, and if there is any other interest or other investors in the product.
Consumer interest determines the value of an NFT.
There is no specific formula for determining the price of this type of digital investment.
This process can be a bit complicated because the value of cryptocurrencies, such as the Ethereum blockchain or Bitcoin, fluctuates daily.
In addition, you have to take into account the listing fees on the trading floor.
Below you will find some tips for pricing your creations:
Be willing to experiment. Small businesses can experiment with gamification, allowing them to invest in other products related to their NFT, such as t-shirts or physical copies of their artwork.
Start small but aim high. This is one of the rules of investing in gold or crypto marketplace transactions.
It’s best to enter the NFT marketplace with your product at a reasonable price.
Then track the behavior of your NFT, the mainstream, and predict the profits it can generate.
Don’t be afraid to increase the price if things go well.