Non-Fungible Token (NFT) is a trendy word nowadays. You may have heard that recently an artwork by Beeple was sold at 69.3 million dollars in the NFT marketplace. This alone is sufficient to make you wonder about the crazy world of the NFT buyer and seller community. However, once you get to know more, you might decide to dip your toes into NFTs. The tech enthusiastic peoples are all into the NFT market from the beginning, but still, it’s not too late to make an entry.
So, is it really that easy to make money in NFT? Does every artist or creator earn a huge amount from selling their art in the NFT marketplace? Is it only for artists? How to make money in NFT? If all these questions cloud your thoughts, don’t worry! We are here to make things easy for you and help you learn more about NFTs.
What is NFT (Non-Fungible Token)?
Before starting all about the processes, let’s start from the beginning because we aim to help everyone, be it an owner or expert. So, if you’re hearing about NFT from your friend or any social media or tech guy, he may not explain the concept of NFT very well. This is one of the reasons why NFT is widespread, and people are buying them at a high price.
Well, the term non-fungible means something that can’t be interchanged. If you have a 100 dollar note, you can exchange this note with your friend for another 100 dollars or two 50 dollar notes. But, If you own an NFT artwork, it can’t be interchanged. If you own an NFT, you will be the only owner of that piece until you sell it to others or make someone else the rightful owner of it.
The token stands for the authenticity of the NFT. So, the token will ensure you and other communities or the whole world that only you’re the owner of this masterpiece. No one can snatch away the ownership from you, something that can be done in real-life situations but impossible in the NFT world.
How to Make a Living with NFT – 5 Ideas You Need to Know
There are many ways you can choose to make money from the NFT field. But, before deciding, you need to understand which field suits you most and which field you can stick with passionately. You can earn money as a creator, reseller, or creating a job place related to NFT. To know more about them, here are the details.
Idea 1 – Create and Sell Your Services
Are you a creator? Are you involved in creative work like 3D artwork generation, art-making, Games creator, musician, or video making? Whatever you’re, you are always welcome to sell your service in the NFT market. Opensea, Rarible, Enjin, Wazirx, and SuperRare are the NFT markets ready to introduce you to real buyers.
If you are thinking about what you can create to sell on the NFT markets, here are a few topics to consider; graphics design, character animation, VFX, or 3D design. NFT recently created a huge market for artwork designers.
Not just artwork, you have the chance to make money as a gamer as well. Game creators are now coming as a community in the NFT marketplace to create and sell games. The unique game characters to the game items in the hand of the characters all together help the game maker to earn money.
The same goes for the musician and video content creator. They are recording their songs and selling them to the market. The buyer gets the opportunity to hold the original version of the song all by himself. Imagine far away in the future, when someone would listen to songs in their metaverse world, your name would pop up as one of the sole owners of that song. Unimaginable feeling, right?
In the same way, you can sell domain names, virtual worlds, trading cards, collectibles, sports, and digital utility items.
Have you ever collected NBA top moments cards or the card of your favorite player during significant tournaments? The NFT trading cards offer a similar collector’s experience where virtual sport trading cards collectors accumulate and go crazy over collecting rare cards. The more unique the card, the more expensive it is. The collector’s mentality has always remained the same among humankind and is always here to stay. NFT is built into the same human desire to possess unique materials and call these collected materials their own.
If you thought the NFT marketplace is limited to people who are online and present in the digital world, then you’re yet to discover the far-spread popularity of NFTs. It is possible to use your real-world creation to earn money from NFT. But how? Let’s take an example of a carpenter.
Say, a carpenter shapes a piece of furniture from real wood. You might wonder how the carpenter could earn money from his physically created goods. Here is the beauty of the NFT. A carpenter can create a rare piece of furniture and take a snap or video of his final product. He can mint this picture or video by using blockchain technology and make it available in the marketplace for auction or selling.
The carpenter can also send the physical product to the buyer with his NFT picture as a token of love. There is always an option from the creator to offer more with their auctioned product. If he loves it, he can also send the video to the buyer free or create a separate NFT work to sell the video of making a piece of unique furniture.
So, both the physical and digital professionals now have the opportunity to showcase their talent in the NFT marketplace and start earning from the marketplace. All you need is to be an expert in a specified field and have decent knowledge about how things are work.
Idea 2 – Earn From NFT Royalty
As soon as you sell your creation to another buyer, does your source of income from that specific NFT stop? No, the NFT marketplace isn’t limited to just selling the product once. NFT offers the utmost value to the creators and artists. You may forget about your uploaded artwork once its sold, but as long as your NFT is being traded online from one buyer to the other, you will keep receiving royalties as the original creator of the content.
Sounds like earning money while sleeping? It is surely is a form of passive earning. Keep in mind that you can earn royalties from your creation but, to be in that position, your NFT needs to be too popular or extremely rare. Famous and rare NFTs catch the buyer’s attention quickly, and they are traded for a long time.
When a creator uploads an NFT, he defines a royalty percentage from his creation. During upload, the creator needs to select this option. The royalty can be any percentage. Generally, the royalty percentage varies from 2%-10%. Let’s learn more about how setting royalty percentage works with an example.
Let’s say you uploaded a picture of a koala bear. During uploading, you select 10% royalty. So every time the koala bear is traded, you will get 10% royalty Ethereum or blockchain coin from the trading. Initially, if your koala bear traded for 20 Ethereum, you will get 2 Ethereum as royalty. After a while, if your art is traded for 100 Ethereum, the buyer needs to pay 10 Ethereum to the creator.
Generally, the price of the art doesn’t become as high as we use in the example. But to make the calculation simple, we use large round figures to make it easy to understand. Due to this royalty feature, digital artists are becoming more interested in the NFT marketplace.
Idea 3 – Become an NFT Investor
You can be an NFT trader or investor to earn money from the NFT marketplace. You have both the option of becoming a short-term investor and a long-term NFT investor.
Short Term Investment
To become a short-term investor, you need to be free and dedicated to trading. It is like share market trading, where you will look over all the trending and upcoming NFT for a day or week-long and decide whether to buy or sell.
In the short-term investment, the optimal goal is to buy an NFT artwork or any other NFT form at a low price and sell it when the price rises. For that, you need to know when you can buy the NFT at a low price and when the peak moment is going on. If you are looking into the market carefully, you can understand the timing clearly.
Generally, the gas fee is quite low in the morning. So if you make a move to buy an NFT in the morning, you can buy it at a low price comparatively. You can also invest in NFTs that are going to be launched very soon and are yet to hit the NFT market. But, there is some risk as you don’t know whether the upcoming NFT will become a massive hit on the market or a failure.
Long Term Investment
Did you know if you bought bitcoin in 2014 for 5 cents, today you will be the owner of 42,190 dollars? Yes, long-term NFT investment can provide you this level of opportunity to make huge money just by owning one NFT.
As NFT is based on blockchain technology, you will earn money in your blockchain currency wallet. In the present world, the price of blockchain is increasing every day. But, as we showed in the statistics previously, you have already understood that owning a huge amount from NFT or blockchain isn’t a short process.
So, if you want to earn money from NFT in a long-term investment, you can buy an NFT and keep it to yourself for a long time. Or, you can create an NFT and keep a close eye on its improvement. By this time, you can do marketing for your NFT; you can make it popular by creating a fanbase of your art on Twitter or Discord.
But, keep in mind that there are both profit and loss situations in the long-term investment. If you are determined to stay with your investment for a long time in the share or secondary market, you can’t feel upset when you see your buying company share falling. You need to hold your nerve and keep waiting for the upward trend.
The same goes for the NFT marketplace. If you see that your NFT doesn’t get a proper value from the marketplace, don’t lose heart. If you create character animation, you can combine it with an upcoming game in the NFT. It would be best if you communicated with the community to use your character in the game.
But, sometimes, your NFT can’t be sold at your desired price in the long run. So it is always advisable not to invest beyond your limit. Stick with the investment as much as you can bear. We are still in the starting phase of the NFT world; we don’t know what will happen next. Things can go very well but could head in the wrong direction. So, do proper research before long-term investment.
Are you interested in investing in NFT, but you don’t have enough money to buy the NFT? As the bitcoin price nowadays is too high, it can be difficult for most people to be an owner of the full NFT workpiece. In that case, you can stake your investment in the NFT, which can provide you with potentially good returns.
In staking NFT, you invest a certain amount to the individual workpiece, but not the total amount. If your invested NFT gains a certain amount of percentage over time, there is a possibility of owning the NFT based on the percentage share value of the asset itself.
Some creators are interested in selling an NFT percentage-wise. Say for, an artwork divided into 100 pieces. Now, 100 people can be the owner of that artwork if everyone occupies 1% of this artwork share. It won’t cost you too much, and also, you get a chance to stake your investment in the NFT that you own.
Staking NFT is a good option if you don’t have enough money to outweigh the main floor price. The NFT is moved to a staking platform. Here it is assigned to governance which determines the APR before the token goes through staking.
Idea 4 – Get a Job in the NFT Space
Tech enthusiastic people are getting more into blockchain and NFT space gradually. The jobs that once didn’t exist have now turned into some most demanding positions. Data mining job is one of them. This new job sector is looking for experienced people while offering a huge amount of salary.
But, as mining and blockchain technology is comparatively new, it is quite difficult to find well-experienced people in the field. So if you’re good at programming and know a bit about blockchain technology smart contracts, you have the opportunity to start your career in the NFT space.
NFT also opens up positions for designers, influencers, and gamers to use their creativity for the NFT marketplace. Tech companies that are eyeing the NFT space in a lucrative way are more interested in hiring graphic designers, game developers, music artists, anime character creators, and so many other talented people.
Idea 5 – Create A Job In the NFT Space
If you have entrepreneurship skills and passion, try to think out of the box. You could create new jobs related to the NFT space. Build new apps or wallets that support NFT operations or are a better alternative to present ones. If you don’t have the capability to compete with the current market, try to come up with something new.
It’s always hard to start any new project, but if you have passion and dedication for the NFT space, the NFT community will embrace your innovations warmly. But, don’t try to achieve something with a flook as a sudden flook can initially give you an upward trend, but you can not withstand this in the long run.
If you can’t create a direct job related to the NFT marketplace, you can start a business that will support the NFT marketplace. You can try to build a community that will write about different topics of NFT. While many content creators write are busy writing about other hot topics and lucrative sectors, you can have content creators write about NFT.
Youtubing can be another option to talk about NFT space. Do you own any NFT? If your NFT is not popular and you want to make a good profit from this in the long term, keep it popular by doing a blog on your NFT artwork on youtube. Your artwork will get more views, and you can use this idea to make other people’s NFT. Who knows, you could be the first trending company to publicize NFT artwork and start earning money from NFT sponsors.
Statistics show that, in the last two years, 4x more people are searching for NFT related video content than in the year 2019-2020. You already know how many people are already learning more about NFT. So it’ll always be an advantageous option to be an early player in any field.
If you have already started to develop an idea, but you are not getting good feedback from the viewers or users, don’t lose hope. It’s not a bad thing, perhaps good, as you are already a step away from discovering something more than others.
Difficulties In Generating Income from NFT
People sometimes represent NFT in a way that makes it seem like generating an income from the NFT marketplace is a piece of cake. But it’s not. You have to be passionate and determined to stick with the marketplace for a long time to be successful.
If you’re a creator, you need to create something that is rare. Any art form that doesn’t have special features doesn’t earn any revenue from the market. If you think that you will earn money from selling your selfie for a million dollars, it’s not going to work out for you. You either need to be very popular in the real world or your selfie needs to contain something special to be sold at a reasonable rate in the NFT marketplace.
You can use the Rarity tools website to check the rarity of your created items. It will make a comparison and provide a score of your art by inspecting all your features carefully. The more rarity score you will attain, there is more chance to sell. So, it’s always necessary to be unique, rare, or a particular quality holder to sell your NFT in the market as a creator.
If you are a trader or investor, you have to do a lot of market research to make a good deal. If you want to be a short-term trader, you need to keep an eye on the market from day tonight. You need to choose the right time for buying NFT at a low price and find a time to auction them when you get high revenue.
If you are a long-term investor, you need to research the NFT, its features, rarity score, and the possibility to gain in the future. So, this research, time, and dedication doesn’t come in the blink of an eye. You have to invest your hard work to convert them to earn money from the NFT marketplace.
The NFT world is booming, and it also creates a chance to earn money. People use this platform to earn money both actively and passively. You can use your skill and experience to earn money from the NFT space, whatever occupation you are in now.
But, to enter this marketplace, it’s better to have a financial backup. Don’t pursue this career without knowing about the market. Invest your time and money in this market when you are sure that you can support yourself with your backup and you are a long race player to be a winner in this NFT earning game.