Non-fungible tokens (NFTs) has surged in 2022, with over $37 billion being funneled into NFT marketplaces. As the market stabilisers, expenditure is anticipated to hit unprecedented levels by year’s end.
A lot of individuals are finding success with NFTs, and many more are eager to join the fray but are uncertain where to start. If you fall into this category, this blog will help you uncover the most lucrative methods for quickly generating revenue with NFTs as a beginner.
What Are NFTs?
NFT stands for non-fungible token. These digital assets are unique and cannot be replicated. Imagine them as digital counterparts to rare artworks in a private collection, each with a distinct value.
Why Are People Investing in NFTs?
You might wonder why people spend substantial sums on intangible assets like NFTs. The answer lies in consumer demand and the uniqueness of each token. The rarity and desirability among potential buyers significantly influence an NFT’s value.
While digital images can be copied, ownership of the original NFT is transparently recorded on the blockchain, ensuring the authenticity of ownership.
How to Make Money with NFTs
1. Create and Sell NFTs
If you’re a creator, you can sell your digital works as NFTs. This includes art, music, videos, and more. Some creators have sold unique digital assets for significant amounts, proving that creativity is the only limit.
2. Rent Out NFTs
NFTs can be rented out just like real estate. This process is straightforward and allows you to earn rental income from your digital assets.
3. Earn Royalties
Creators can earn lifelong royalties from NFTs even after they are sold. By enforcing these rules, you ensure passive income whenever your NFT changes hands.
4. Trade NFTs
NFTs can be treated like stocks. By buying and selling NFTs, you can generate profit. This method skips the creation process and focuses on trading existing assets.
5. Engage in NFT Gaming
Games like CryptoKitties offer in-game NFTs that can be bought, sold, or traded. Some NFTs in these games are highly valuable, and new games with lower-cost NFTs are emerging, providing more opportunities to earn.
6. Stake NFTs
Combining NFTs with decentralized finance (DeFi) allows you to stake your digital assets to earn yield. Platforms like Kira Network and NFTX support NFT staking, providing additional income streams.
7. Implement NFT Yield Farming
Yield farming with NFTs involves using liquidity provider tokens as collateral on various DeFi platforms to generate extra yields. This multi-layered strategy can enhance your income from NFTs.
8. Invest in NFT Startups
Investing in NFT startups is another way to earn money indirectly. By supporting promising companies in the NFT space, you can benefit from their growth and success.
9. Flip NFTs
NFT flipping involves buying NFTs at a low price and selling them at a higher price. It’s a short-term strategy that requires identifying undervalued NFTs and market trends.
10. Licensed Collectibles
Blockchain technology enables the creation and sale of digital replicas of licensed collectibles. Sports cards and other licensed items can be securely stored and traded as digital assets.
digital assets.
Top NFT Marketplaces
OpenSea
OpenSea is the largest and most popular NFT marketplace, offering a vast array of digital assets, including art, domain names, virtual worlds, trading cards, and more.
Launched in 2017, OpenSea supports a wide variety of blockchain networks such as Ethereum, Polygon, and Klaytn, making it highly accessible to users across different blockchain ecosystems.
The platform’s user-friendly interface and robust search functionality make it easy for both buyers and sellers to navigate the marketplace and find the NFTs they are looking for.
Additionally, OpenSea allows users to create and mint their own NFTs without needing extensive technical knowledge, further democratizing the NFT creation process.
Rarible
Rarible is a decentralized NFT marketplace that focuses on empowering creators and artists. Founded in 2020, Rarible allows users to create, buy, and sell digital art and collectibles without needing any intermediaries.
One of the unique aspects of Rarible is its governance model, which is powered by its native token, RARI. RARI token holders can vote on platform upgrades, propose changes, and participate in decision-making processes, giving the community a significant role in shaping the platform’s future.
SuperRare
SuperRare is a premium NFT marketplace that specializes in high-quality digital art. Launched in 2018, SuperRare positions itself as a curated platform, accepting only a select number of artists to ensure the exclusivity and quality of the artwork.
This curation process has helped SuperRare build a reputation for hosting some of the most innovative and valuable digital art pieces in the NFT market. Each artwork on SuperRare is a unique, single-edition piece, emphasizing scarcity and increasing its value among collectors.
CryptoPunks
CryptoPunks is one of the earliest and most iconic NFT projects, launched by Larva Labs in 2017. The platform features 10,000 unique, algorithmically generated 24×24 pixel art characters, each with distinct attributes and traits.
These digital characters have become highly sought after, often considered as some of the original NFTs that kickstarted the entire NFT craze. Due to their historical significance and rarity, CryptoPunks have been sold for millions of dollars, making them a symbol of status and a valuable digital asset for collectors.
Axie Marketplace
Axie Marketplace is the official marketplace for Axie Infinity, a popular blockchain-based game where players collect, breed, and battle fantasy creatures called Axies. Launched by Sky Mavis, the Axie Marketplace allows users to buy, sell, and trade Axies, as well as land and other in-game items.
Axie Infinity operates on the Ronin sidechain, a custom-built Ethereum sidechain designed to handle the high volume of transactions generated by the game, providing a seamless and cost-effective user experience.
Pros and Cons of Making Money with NFTs
Pros
- Diverse Opportunities: Turn almost any digital creation into an NFT.
- Profit Potential: Buy low and sell high for profit.
- Gaming Rewards: Earn by playing games that use NFTs.
- Safe Crypto Usage: Use secure wallets and platforms for transactions.
- Personal Marketplace: Create and control your own NFT store.
Cons
- Price Volatility: NFT prices can fluctuate significantly.
- Complexity: The NFT space can be confusing for beginners.
- Uncertain Longevity: Some projects and games may not last.
- Legal Concerns: Be aware of copyright and trademark issues.
- Market Trends: Staying updated with NFT trends can be time-consuming.
Conclusion
NFTs offer new opportunities for creators and investors. With proper research and strategy, you can turn NFTs into a profitable venture. MetaDiac, a leader in NFT development services, can help you quickly create and customize your NFT marketplace. Embrace your creativity and start making money with NFTs today!
