The enormous growth in the NFT space over the years has ushered in various ways investors can make profits. While a lot of people are already making big fortunes through these numerous ways, there are some others on the sidelines waiting on how to get the most out of it. This article discusses different ways to go about making money with NFTs.
1. Mint and Sell
One of the most common and direct ways of making money with NFT is by minting an NFT and listing it for sale on an NFT marketplace. Any digital item such as arts, images, properties, videos etc., can be tokenized (converted to NFTs) and listed on NFT marketplaces like OpenSea, Rarible e.t.c
As a result of the massive growth of the NFT market, competition among creators keeps increasing with various collections emerging each day. It is then essential for creators willing to create a new collection to ensure their creation is exceptional and gets the much-needed visibility for potential buyers.
2. Trade NFTs
Trading NFTs is one of the easiest ways to make profits on NFTs. Trading NFTs has to do with purchasing an NFT collection and reselling them at higher rates.
Though, this can seem hard to deal with in cases when knowing the right time to sell becomes a problem. Knowing the right time to sell depends on some factors like the kind of NFT, its utility and if there are other interests in it. These factors can be determined by a quick research on the internet and different NFT marketplaces.
Other factors to consider might be price appreciation and depreciation. Profits and losses can be calculated by adding extra charges like marketplace listing fees and royalty fees.
Also, it is important to know the value of the NFT as not all NFTs are created equal. Some are worth much more than others. So, looking out for prospects is essential in making money from future resale.
You can also make money through flipping. The term flipping can be referred to as a short-term trade. It means buying an NFT when it is still very new especially during the minting phase and selling it quickly for a higher price. The key to flipping an NFT is choosing the right project and carefully analyzing the market before buying.
Read Also:
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3. NFT Games
Playing NFT games is another method of making money with NFTs. With platforms like Axie Infinity and Splinterlands, players are offered ways to generate a regular revenue.
Some of the best NFT games now make use of play-to-earn features which allows experienced players to earn income out of it. These rewards are often denominated in the platform native tokens. This means they can be used in purchasing in-game items or exchanged for real money on decentralized exchanges.
While none of the NFT games have become globally known, with the buzz of NFTs, there are chances that there will be more games in the near future that allow NFT trading.
4. NFT Royalties
Through royalty fees, creators of NFTs can generate passive income even after selling their NFTs. This way, they earn some amount of money out of the sales of the NFTs. For instance, a 10% royalty fee can be placed on a digital artwork, this means the creator will earn 10% of the sales price each time it is resold.
The process involved in earning royalties is fully automated which means creators do not need to track payments manually.
5. Staking
Staking has to do with locking digital assets into a DeFi protocol smart contract for a period to earn an advantageous interest referred to as a yield.
Staking has to do with locking digital assets into a DeFi protocol smart contract for a period to earn an advantageous interest referred to as a yield.
Some platforms allow users to use a wide array of NFTs. Other platforms require the purchase of native NFTs to earn rewards on staking tokens. These tokens are often designated in the platform’s native utility token.
NFT platforms that allow staking are Kira Network, Splinterlands, Only1 and NFTX.
In some cases, part of the rewards stakers earn is indicated in governance tokens. This gives token holders the benefit of voting in influencing the growth and evolution of the platform and its ecosystem.
Stakers can as well reinvest coins gotten from staking into other yield-generating protocols.
Closing thoughts
With several trends, concepts and ideas springing up in the NFT space, these opportunities are open to everyone but not everyone will be able to leverage it and make money from it. Potential investors can watch out for NFTs that can be rented, staked or traded to know the right ones to invest in.
Since the metaverse is an ever developing sector, there is more anticipation for different new features emerging on the NFT marketplaces and platforms.
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