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How to make money with NFTs in 2023

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Digital assets provide a profitable way to diversify investment portfolios and the NFT market has garnered attention over the years. NFTs have proven an innovative tool for revolutionizing many conventional systems and platforms like gaming. It is no news one could make money with NFTs, however, how to make money with NFTs remains a knowledge many are yet to grasp.

The 2022 NFT market despite the bearish atmosphere nearly matched 2021 in trading volume. NFTs in 2021 generated $25.1 billion in organic trading volume and in 2022 declined slightly to $24.7 billion. As more industries like the automobile (BMW, Nissan, etc.) and fashion industry (ASICS) embrace and integrate NFTs into their ecosystem and user value, the 2023 NFT market could surge. 

To have a share of the NFT market in 2023 here is how to engage the market and make money:

Minting NFTs / Launching a Collection 

Blockchain seeks to provide a system where creators own and monetize their creations. To make money with NFTs in 2023, explore skills that let you become a creator. Aside from converting art and music to NFTs, skills like photography, digital artist, and sculptors can fetch good returns in the NFT market. Being a photographer is another lucrative yet little-explored path to earning with NFTs. As a photographer, you can take shots of rear views of nature and events and mint them as NFTs sell. 

A sculptor can mint their sculpture as an NFT and bind it to the NFT. Likewise, digital designers express creativity in colors and then mint as NFTs.

The NFT market is competitive, therefore being a creator requires good expression of outstanding creativity. Brands with good utility and market penetration can leverage NFTs to add more value to their product ecosystem by minting their products as NFTs. For example, buying an ASICS shoe can earn you an NFT. ASICS in 2022 launched an NFT platform for its sneakers, buyers can get the NFT sneakers as rewards or as direct purchases. With their brand representation, the NFTs can attract investors and sell out almost immediately when listed in the market. 

Flip, Trade, or HODL NFTs

Just like other digital assets, you can trade, flip or hodl NFTs to earn from price differences. NFT trading is the buying and selling of NFTs for gains and repeating the process. One can buy an NFT and wait to sell at a higher price. Flipping is a very short-term approach to buying and selling NFTs. One can buy an NFT considering essential market factors, then resell shortly after buying. NFTs purchased for this purpose should be evaluated carefully and the token utility reviewed so it can attract immediate investors or buyers. Holding NFTs refers to buying NFTs and holding them for long terms. Holding NFTs is a strategy with a longer time frame involving years without selling off. The buyer is looking to sell or earn from the NFT when there must have been a bigger percentage increment from the purchase price. 

The similarity between the three strategies is that they have profit potential. The difference between them is the time between buying and selling. Flipping is a very short-term approach, trading involves a longer time than flipping, and hodling is kept for a long time before selling. 

Earn Passively with NFTs

You can earn passive income from NFT staking, NFT yield farming, and renting. One can stake NFTs in platforms that facilitate NFT staking like Splinterland, Kiranetwork, and NFTX. Staking NFTs entails depositing or locking the NFTs in a DeFi protocol to generate yields. The NFTs can be any NFT owned by the user or a native NFT of the platform a user chooses to engage; whether the NFT is a random or native NF, the platform specifies. When the NFTs are locked, yields are generated in tokens that the user can sell or invest in other protocols. Also, NFTs can be gotten as rewards from staked tokens in a protocol, then the user sells the NFTs and earn. 

NFT yield farming involves earning from earned LP-NFT tokens in DeFi protocols. One can earn extra yields when they stake their LP-NFT tokens, and LP-NFT tokens are ERC-721 tokens obtained from staking on AMM protocols. Additionally, one can rent or loan their NFTs to a third party without necessarily selling them out. While the NFTs are on rent the owner is paid against when it will be returned. 

NFT Gaming

Gaming is taking a new turn as rewards are not just counted on pleasure but on tradable points. The Sandbox, Cryptokitties, Decentraland, Illuvium, and many others reward players with NFTs and cryptos while offering immersive game modes. These points can be in the form of NFTs exercised in most play-to-earn games. In NFT gaming, players earn NFTs as rewards from gaming and sell them on secondary marketplaces. The top five play-to-earn game tokens based on market cap include The Sandbox, Decentraland, Axie infinity, Gala, and Smooth Love Portion. 

Following through with the rules of the game and completing tasks could hand the user NFTs as rewards. Digital game lovers can leverage this to earn NFTs which they can trade and make money in 2023. 

Closing thoughts

NFTs as part of the digital economy pose a good way to earn money, especially in 2023. The attention the NFT has received seems to keep increasing as the years go by, and recently it is being adopted by key industries in different sectors. 2023 is unfolding and it is only right to leverage the market by choosing any of the highlighted strategies in this article. However, one should have in mind the risk associated with digital assets and ensure to have a good knowledge of NFTs before engaging. 

Read also; 

How to make money with layer two blockchains in 2023

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