6 ways to make money with NFTs

In recent years we have seen an exponential diversification of online investments. From the growing cryptocurrency market to the increasingly accessible field of web development. But there is one operation in particular that has gained a lot of notoriety in recent years, and that is the world of NFTs.

An alternative that stands out for its fluctuating profitability, but more than anything, for its accessibility. And this is because NFTs are within the reach of large and small investors alike.

Perhaps you have already heard of these assets, but are not yet familiar enough with them to take the first step.

And that is precisely what we are going to be developing in this article, we are going to tell you about some of the best ways to earn money with NFTs.

What is an NFT?

First of all, we have to understand what we are talking about. To put it in simple terms, an NFT is a “non-fungible token”.

What does this mean?

An asset encrypted using blockchain technology that makes it unique

Due to its nature, an NFT cannot be duplicated or transferred identically. Therefore, we are talking about a property that gives us the right of ownership and, like all property, it can be marketed, rented, resold, and auctioned.

Surely now you are wondering

And what does an NFT look like?

Well as you want.

These assets have become especially popular as digital works of art, but the reality is that they can take any format.

An NFT can be an image, a video, or an audio track.

They are usually created through Ethereum, which allows artists to “tokenize” their work using blockchain technology, which is like minting a coin.

Now we are going to see the ways to earn money with NFTs.

1 Make money creating NFTs

Now, we’ve mentioned art in NFTs before, and this is perhaps the best-known market for these assets.

Here, graphic artists from around the world design their own collections or individual works, then market them on platforms like Appy Pie, Rarible, Open Sea, and Ethernity.

Some of these platforms include tools to mint works automatically. In this way, users with little or no experience in the area can start designing their NFTs.

Once you’ve designed your token, you can sell it at whatever price you want.

Some works sell for hundreds, even thousands of dollars, while others can go months online without being sold.

For this reason, it is important to do a market study beforehand to find out which are the most sought-after works.

But design is not the only way to make money with NFTs in this market.

You can also dedicate yourself to buying and selling assets.

You see, some works can be priced depending on many factors.

Keep in mind that we are talking about property elements that cannot be duplicated.

This means that you can buy an NFT at a certain price, and then sell it at a higher price.

Within the industry, this practice is known as Flipping and there have been cases such as Cryptopunk where the tokens increased their value exponentially in a very short time. For this reason, some bet on works of art in this format as an active investment in the stock market.

2 Earn money with NFT games

As you may have noticed, this technology can be applied in several areas, and video games are not exempt from it. Creating visual works is not the only way to design NFTs, you can also do it within a metaverse.

There are virtual games and platforms such as Decentraland and The Sandbox in which parcels of land are traded, mostly in cryptocurrencies. The buyer has the right of ownership over this parcel in question and it can be modified to his liking.

Yes, this asset is an NFT and its price can vary depending on factors such as the price of the “land” or the modifications that the owner includes in it.

You can buy and sell assets, design items like clothing or accessories, and then trade them within the platform, organize events with exclusive prizes, and more.

Any operation that involves transferring an item from one user to another within these metaverses will be encrypted in the blockchain language since these titles are based on Ethereum technology.

This feature gives rise to genuine virtual economies in which you can bet on active or passive investments.

3 Set royalties

We have mentioned that NFTs are, in essence, property that cannot be duplicated but can be traded.

However, there is a very attractive option that differentiates this digital asset from other more “traditional” ones, and that is royalties.

What does this mean?

If you sell a car, once the transaction is complete, you will no longer be the owner of this asset, nor will you earn more than the agreed payment.

On the other hand, if you create an NFT you can set a royalty for each time the token is traded.

This means that if the buyer resells your work, you will get a small payment for that transaction, and if the new buyer does the same, you will again collect a royalty.

This is a great way to make easy money with NFTs passively. It should be noted that this figure is established as a percentage (for example, 5%), which means that if your work is resold at a higher price, the payment you receive will also be.

But how will I know how many times my work was sold? That is the advantage of blockchain technology, it is all an automated process.

Once your NFT is circulating on the market, you don’t have to worry about manually tracking it or contacting sellers.

If you set up a royalty, each time the asset is transferred you will receive payment automatically.

4 Long-term investments

Until now, we have talked mostly about active investments, however, in the world of NFTs some options seek more extended returns.

One of the practices that is becoming more popular in this sense is that of HODL (Hold on For Dear Life). In essence, it is nothing new, as it is buying an NFT and selling it at a higher price.

The difference with flipping lies in time, since HODLing implies “keeping” the token for a longer period. In this way, it seeks to earn money with NFTs as a result of the long-term listing.

Returning to the example of the Cryptopunks, they were valued exponentially for their quality as pioneers in the area of ​​NFT art. In HODLing, you typically buy new or “promising” assets and hold them for long periods-refraining from selling them despite market fluctuations.

You should keep in mind that this is a passive investment that will not generate royalties or constant income. On the contrary, it seeks a positive return in the future, betting on time as a factor of value.

5 NFT Staking

We continue in the line of passive investments and now it’s time to talk about Staking. This option is similar to HOLDing, however, here our asset will be locked in a DeFi platform.

As long as the NFT is in this deposit, we will get a small staking profit in return. It should be noted that, despite being blocked, we have not sold our asset, so we continue to own it.

This alternative generates lower income compared to other options, not to mention that they will be subject to annual percentage yield (APY) and amount of staking assets. But it is still a compelling option for users interested in making money with NFTs in the long term.

6 Invest in stocks

Designing, buying, and selling NFTs is not the only way to generate profits related to this business.

Another alternative is to invest in shares of companies that operate in said market. While we will not be transferring or designing tokens here, the value of our investment will be directly tied to them.

The reality is that there are still not many companies that have diversified their actions in this area.

The most popular publicly traded one may be Coinbase, but more and more companies are entering the NFT market.

Other companies listed on the Stock Market that are related to this market are:

• eBay
• Cloudflare
• Dolphin Entertainment
• DraftKings

This type of action has very high volatility, so there may be periods where they obtain tremendous losses and others where they obtain great returns.

The utmost caution is recommended and study the world of stock investments well before getting into it.

Make money with NFTs – Final opinions

As we have seen, the options to generate passive and active income in the NFT market are many, but more importantly, they continue to develop. And this is not a surprise, since non-fungible token trading has become a popular practice in just under two years.

Blockchain technology, without a doubt, provides endless possibilities for electronic commerce.

Currently, there are more and more small investors and large companies that are betting on the cryptocurrency and NFT revolution, so it is a field with a broad horizon.

However, the reality is that these ways to make money with NFTs are not without risk, just like all investments.

The price of assets or their depreciation is subject to a variety of changing factors in the stock market. Not to mention that this is a relatively new technology in the financial area. But we can affirm that some of them involve less risk than others.

One thing seems more or less clear: it seems quite likely that these assets will have more and more widespread use in the future, so it may be a good idea for those who want to start creating companies related to the subject.