Non-Fungible Tokens, or as most people know them, NFTs have been all over the internet these days and everyone is raving about them. You might have heard or read about NFT creators or investors who have made staggering figures that have changed their lives forever. For instance, Beeple’s NFT broke the internet when it was sold for about $69 million. Instances like these are changing how the world views these digital collectibles.
A lot of people who have heard about NFTs or read up on this topic are now looking to get their feet in the water to ride this wave. There’s nothing to worry about, the boat hasn’t sailed so far yet. We will be looking at 5 different ways of making money with NFTs. However, for those who have been watching from the sidelines, we will first look at what an NFT really is.
What is an NFT?
NFT (Non-Fungible Token) refers to a crypto asset that cannot be reproduced or altered. Most people view these digital tokens as the digital equivalent of artwork in a private collection, where each piece of art in the collection is unique and has its own value.
Just like unique art pieces, NFTs can be sold for money or cryptocurrencies. It’s worth noting that the token’s asset transfer, just like any other crypto asset transfer, will be recorded on a blockchain. This also determines who the current owner of the NFT is.
All the NFTs are tied to a digital asset (or sometimes a physical asset) of the original owner. Technically, anything that can exist in digital form can be turned into an NFT, including pictures, famous Twitter tweets, Facebook posts, and so much more can be turned into NFTs and sold by anyone.
You might be wondering what gives an NFT value. Exactly what gives a unique art piece value? It is consumer interest that drives the value of NFTs. We could also compare NFTs with trading cards, where the rarity and base of interested consumers influence their value. Let’s move on and look at 5 common ways of making money with NFTs.
Creating and Selling NFTs
Do you see yourself as a creator? Do you think you can create something that you would be able to monetize? You can earn money by selling your works as NFTs. You could create anything digital and sell that as NFTs. From original digital art, videos, memes, to music, audio clips and so much more.
In fact, someone in New York City sold a recording of his farts as an NFT! There are countless opportunities out there in the digital world. However, if you’re really thinking this is the best way for you to make money with NFTs, we would recommend that you get in touch with someone that can promote your NFTs or crypto projects, like Crypto PR Marketing Agency.
Buying and Selling NFTs
You could start trading NFTs, just like people trade cryptocurrencies. If you can invest in NFTs by buying them at the right time, you should be able to sell them at a later point in time for profit. People have made fortunes by trading crypto assets, including NFTs. For instance, a Miami-based art collector, Pablo Rodriguez-Fraile, flipped a Beeple digital art piece almost 1,000 times its starting price in less than half a year!
While some NFTs are worth millions, some are basically worthless. As a trader or a collector, you need to be able to look at NFTs with a critical eye for the prospects of making money by reselling them in the future.
Investing in NFT Startups
An easy way to make money with NFTs is through investing in startups. Over time, NFTs have proven that they’re here to stay and it’s not just a quick-passing crypto trend. The multiple applications of NFTs in various industries shows that there are so many promising NFT startups that are showcasing great innovations in the digital world.
As more and more individuals and businesses invest in NFTs, these digital assets are becoming more mainstream. At the moment, creating NFTs, trading collectibles and even gaming might be setting the pace but we can expect to see more ways in which we can make money through NFTs. Just like it is with every other investment opportunity, investing in NFT startups does carry with it some risks. Therefore, it is important to research widely and invest wisely.
Nobody knows for sure what the future holds for NFTs, however, as they are becoming more mainstream, we can say that they are not going anywhere soon. There are other ways of making money with NFTs, such as staking or even NFT gaming. Imagine making money by playing games!