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Making Money With NFT is Easy in 2022

More than thousands of people worldwide are making money with NFTs. As crazy as it may sound, the term that some of you are not even familiar with has a lot more to offer than we know. NFTs or Non-Fungible Tokens are digital assets that some consider just hype for the time being, while others are considering a serious investment. The technology on which NFT is built can be difficult to comprehend, but when so many people are making profits through NFTs, it’s definitely something you can understand and also make some money from.

This post will dive deeper into how you can make money with NFT, what steps are included, why you should or should not consider putting your hard-earned money, time, and effort into it, and many more tips to help you get started.

What are Non-Fungible Tokens all about?

In simple words, NFTs are nothing more than a unit of data monitored and stored on a blockchain. Here, the blockchain ensures and verifies the authenticity of the unit of data, and this unit of data could be a video clip, an audio clip, an image, etc.

If you enjoy collecting rare items or know why some people spend their entire lives building a collection of their favorite things, be it art or stamps, you will understand pretty much the basic factor that made NFTs so popular in such a short time. These cryptographic tokens, widely known as non-fungible tokens, are based on blockchain technology. 

The easiest way to identify the difference between cryptocurrency and non-fungible tokens is that cryptocurrency can be exchanged or traded, but the same does not apply to NFTs. You can use NFTs to buy and sell artwork, virtual real estate, tweets, and many other fascinating things that were previously impossible to imagine as purchasable products. 

How Do They Work?

The two distinctive qualities that set NFTs apart are provable ownership and provable uniqueness. 

Anything on the internet can be copied and duplicated, but with NFT, you can easily have provable uniqueness as any file stored on the blockchain cannot be duplicated. When a digital product such as art is exchanged or minted on the blockchain, it becomes impossible to have or create a duplicate of that particular art or work. 

That is because all transactions in blockchain are monitored by a network of computers that also confirm the transaction. This involvement of several computers makes the process relatively safe for transactions. This phenomenon is known as provable uniqueness. 

Just like fund transfers through a bank account, any NFT transfers transaction is strictly recorded in the blockchain along with a history of all the transfers of the NFT that cannot be altered or removed by anyone. This aids in the process of tracking the accurate owners of an NFT, which the public can easily view. Hence NFT owners get the benefit of provable ownership. 

How To Make Money Selling Nft?

You can make money with NFTs in two significant ways:

  1. Selling (Content, Art, etc.)
  2. Collecting (NFT)

Selling Art as NFT

It’s easy to understand the concept of creating a unique piece of art and selling it online, but how do you sell it as an NFT? Selling art as NFT means creating a smart contract that gives you provable ownership of the artwork along with a blockchain contract that mentions that you’re the original creator of the piece of art. 

What Does Smart Contract Mean?

A smart contract is a digital contract that includes the agreement terms between the buyer and seller, written into lines of code, and self-executing. Once confirmed and finalized, the smart contract cannot be changed or amended in any form or kind. This type of contract ensures that all the terms and conditions are properly fulfilled and allows security and assurance for both the parties involved in the trading. Smart contracts can be sent automatically without a third party involvement because the transactions that take place in the smart contract of the buyers are processed and maintained by the blockchain. As the process is based on blockchain and stored on a public database, it is impossible to change the contract terms in any way. 

Where Can You Sell Your Nft?

NFTs are sold on various blockchain-supported marketplaces specially created for NFT based buying and selling purposes. The process is comparable to selling your product on any general marketplace. Once you upload your original content for the marketplace, transform it into an NFT, and set it up for selling, then all you have to do is wait for your content to sell while you relax. To make things a little easier to understand and help you get started, here are the steps involved that you can follow:

Choosing an NFT Marketplace

You’ll be amazed to discover the vast number of NFT based marketplaces that are available, and the number is increasing. Among the top and most popular NFT Marketplaces are:

  • OpenSea
  • Foundation
  • SuperRare
  • Mintable
  • Rarible
  • Axie Marketplace

These are only a few of the many popular marketplaces where NFT buyers and sellers get to find what they want to invest in and spend their money the way they want to. Some of the marketplaces on our list can be specific to certain content, for example, songs and audio clips. 

Opensea

Pros

  • Offers industry-leading security
  • It is a democratic and open marketplace
  • It provides an extensive collection of art and collectibles
  • The marketplace provides low barrier entry because it does not require the user to have coding knowledge
  • The gas fees are charged only once
  • It is the most popular and biggest marketplace
  • Users don’t need to go through the verification process

Cons

  • Requires crypto wallet for buying and selling
  • Only cryptocurrency is accepted

Rarible

 Pros

  • Allows users a lot more options compared to other marketplaces
  • It is an open and democratic marketplace
  • NFT sellers and buyers are rewarded with Rari tokens
  • Users can easily connect to their existing wallet without having to create a new one
  • The marketplace allows users to place bids the way they prefer
  • High protection and security for artists’ works

Cons

  • The marketplace has less traffic and collection when compared to other giant NFT marketplaces
  • Users need to pay for minting their artwork.

Foundation

Pros

  • A high-quality art collection is available
  • The marketplace runs on the Ethereum blockchain
  • The users on this marketplace can create and connect with a community of similar creators
  • NFTs are easy to transfer across different marketplaces that support blockchain

Cons

  • Requires recommendation and invitation to join the marketplace as an artist
  • Requires a high gas fee for minting

Minting Your NFT

If you’re not familiar with the term “minting” yet, here’s what you need to know: “Minting is the process of tokenizing a digital file with cryptography.” To make it easier to understand, we can say that you can turn your digital file (art, audio, video, image) into a digital asset or a crypto collectible on the Ethereum blockchain. Once you have minted your NFT, it can be stored, recorded, and moved on the blockchain. This transformation process is known as minting. It is a crucial step to sell your content on the blockchain marketplaces. Minting gives the creator the authority to claim himself as the rightful and original content owner. 

Linking Your Wallet

This is a significant part of the process and will allow transferring funds across different platforms. All you have to do is link your cryptocurrency wallet to the marketplace. Make sure to keep your wallet funded for various costs such as gas fees or other charges.

Put Up Your NFT for Sale

Once you have linked your cryptocurrency wallet and set it up, it’s time to put your NFT on display on the marketplace for selling. To list your NFT on the marketplace, you must ensure that your file (art, audio, video) is uploaded and minted properly. Note that you will have to pay the marketplace service fee and a gas fee (also known as the miner’s fee) when you list your NFT on the marketplace, and the fee will be automatically calculated. 

What is a Gas Fee?

The gas fee is a charge for recording a user’s transactions or conducting a transaction on the Ethereum blockchain network. Users are required to pay a gas fee for placing a bid, transferring an NFT from one wallet to another, and settling an NFT that is won in an auction. The Etherum network can sometimes be quite busy, which causes the gas fee to fluctuate during peak hours, varying in different marketplaces. To avoid paying high gas fees, seek opportunities during non-peak hours.   

Buying and Selling NFTs

Not sure what you can sell as an NFT and make money through this revolutionary technology? Well, we have another closely related option for you. To begin with, create an account on one or multiple NFT supported marketplaces of your preference to get started. Once you’ve created and linked your cryptocurrency wallet to the marketplace (of course, your wallet should be funded), then all you need to do is become the buyer.

What Does the Process Involve?

First, make a list of all the topics that interest you or NFT content that you might be interested in. Then, go to the search bar and type the keyword of what you’re looking for in the designated NFT supported marketplaces. As the search results appear, you can check individual NFTs to find the one that truly excites you. 

Before buying, you should take a look at the price history, properties, trading history, all of which to help you determine whether purchasing that particular NFT is worth your money or whether it has the potential to be sold again or not. The buying process involves just a few clicks where you add the NFT to your cart directly or can even discuss it with the owner for further negotiation before buying. Once you’ve added the NFT to your cart, all you have to do is make payment from your cryptocurrency wallet to be the successful owner of it.

Making Money by Trading NFTs (Collectibles)

Making money by collecting NFTs and later selling them is a process that is quite similar compared to investing in stocks. If you know how stock markets and investments work, you will easily be able to get a grip of the investment strategy in the NFT world. But the fun part is, you will be investing money in things that you personally enjoy or would like to spend time researching instead of the stocks of certain companies that you might not be interested in.

The method to make money by trading NFTs is by collecting valuable assets that have the potential or possibility to increase in value in the near future. Once the NFTs increase in value, you can easily sell them for a profit and earn easy money. NFT collectibles can be painting, trading cards, sports cards, music albums, video game assets, memes, games, and much more.

Before you choose to invest in any NFT collectible, make sure you do your research on that particular content and find out whether it has the capability to increase or stay stagnant. 

After you’ve bought NFT collectibles or have invested in them, all you have to do is hold onto those collectibles and wait for the right time to sell them at a higher price to earn a profit. Moreover, trading NFTs also does not include the minting process, making it a lot easier for beginners. This might sound easy, but not all NFT collectibles will be worth investing in, so you’ve to be willing to dedicate your time and effort to make the most out of NFT trading. Also, note that you will have to pay additional charges such as owner’s royalties, gas fees, and marketplace listing fees when you successfully sell your NFT collectibles. 

Important Tips on Making Money with NFT

Make Research Your Best Friend

Good research skills can be your strongest weapon when it comes to trying to make money by understanding the market and users of the internet. Whether you use the research skills for stock investments or buy NFTs as collectibles to sell, later on, researching will always help you make the best decision. Through research, you will be able to learn more about any given topic, NFT content, valuable collectibles, whatever it is. 

Proper research will aid you in anticipating the market trends in the NFT world while also providing you with the knowledge you need for trading NFTs. You will need to know about the brand’s name, creator’s social status, past projects, history, contract terms, restrictions, brand’s community, and so on. Finding a good NFT will take up a lot of time and effort, but it will be all worth the hard work and bottomless research once you do. 

Aim for the Lowest Price

Buying at the lowest price may not guarantee you a huge profit, but it is definitely the right and the wisest thing to do when investing in NFTs. The lowest price, widely known as the “floor price,” is the minimum selling price of an NFT. The most precise place to find NFTs in floor price is buying a new project drop. Just before releasing, the NFTs are priced very low. Once you’ve done your research, you can try to get actively involved in the brand’s community before the brand launches the NFTs. 

As you become a part of the community, you will easily get access and insights on how the company interacts with its clients, how they’re progressing, and if they have any probability of succeeding after being released. With all these details, you can then choose to buy NFts at floor price and later sell them for a higher price to earn a profit. 

NFT Communities Can Be Your Information Source

Understanding how non-fungible tokens are gaining momentum in the marketplaces and which NFTs will be significant in the future can be difficult and usually all about throwing darts in the dark. But NFT communities can be your savior, whether you’re a beginner or a pro at buying and selling NFTs. 

As you begin trading NFTs, things can and will get a little sophisticated. You might have many questions and opinions, which is why NFT communities are a great place to get answers and ideas. You will remain updated about all the latest trends and news in the NFT communities and be able to make wise decisions when investing or selling Non-fungible tokens.

Is Your Crypto-Based Wallet Secure?

Be it real cash or digital currency; your money deserves to be in the most protected space. While it’s easy to ensure the safety of a physical wallet, things can get a little tricky with a digital wallet. Of course, there are ways to secure your digital wallet, and here are our favorite tips:

  • Make sure your internet connection is highly secure.
  • Store your currencies offline in a cold storage wallet that doesn’t connect to the internet and implement tight security through PIN and a secret 24-word phrase. 
  • Learn and protect your wallet from getting phished
  • You don’t have to store all your cryptocurrencies in one wallet. Instead, you can maintain multiple crypto wallets.
  • Along with online security, keep in mind ways to keep your personal devices secure.
  • One of the best ways to secure your crypto wallet is by changing your password regularly or every now and then. This significantly reduces the chances of risks associated with digital possessions.

Try the Flipping Method for Profits

When it comes to making money with non-fungible tokens, you need to adopt some common strategies as entrepreneurs do. As soon as you make a profit from selling non-fungible tokens, you can choose to re-invest the money to build your own brand and continue making more profits. This process is referred to as “flipping” in the NFT world. 

Even though following the Flippin strategy does not always guarantee high profits, it is still a decent process to remain in the NFT game while you get time to create your brand from the ground up. As you keep researching, investing, buying, you will eventually be able to make wise decisions. 

Plan to Hold NFTS for a Long-Term

The demand for an NFT increases when it is rare, unique and only a few people own it. This scarcity creates hype and needs, among others, increasing the value of rare NFTs, resulting in high prices. This is a familiar phenomenon in our offline world, and the same applies to NFTs as well. As a smart NFT collector, it would be best if you do proper research to collect some unique NFTs and store them somewhere safe for a very long time. 

It all begins with collecting non-fungible tokens of a brand that has a strong impact on its users in the present and has the possibility to gain in value in the long term. Look out for investing in a brand that pays to its community, is very active, innovative, and has the potential for growth. Holding NFTs for the long term could mean many years, and within years, you might even get lucrative prices to sell them, but if you believe in the potential of your collected NFTs, you will enjoy the perks of patience in the long run and might get a bigger profit.

In a Few Words

NFTs have gained remarkable popularity and for good reasons. Non-fungible tokens are revolutionary for artists and creators from around the globe who can enjoy fame and profit for their hard work. This growing industry can be a lucrative opportunity if you’re willing to put in the effort and time to understand it well. 

Through in-depth researching, getting actively involved with the brand’s community, remaining up-to-date with the trends, and making the right decisions at the right time will help you make money with NFT. A great strategy and knowledge could make you so much more money through investing in NFTs when compared to other investment options. You’ll have to choose whether you want to take a calculated leap or let an opportunity go. 

Henry Hicks
Henry Hickshttps://nonfungibletalk.com
NFT and Crypto Enthusiast. Loves Travelling and Exploring the Metaverse!
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