In the article about NFTs, we talked about what non-fungible tokens are and why they are popular. In this, we will talk about how to make money on NFT. What will be in the article: an analysis of ways to make money on NFTs and nuances that beginners usually don’t know about.
Let’s start with the hardest one:
The essence of earning is to post your work on the marketplace, NFT is assigned to it. If it is bought for cryptocurrency, withdraw the crypt into ordinary money.
What you need to make money: a digital file that can be put up for sale. It can be a picture, photo, video, animation, text, e-book, music, any digital file.
The work must be created by you and be unique. Just taking a picture from the Internet and setting it up as your creation will not work. Even if it is a graphic processing of someone else’s image, it should be your processing.
You can sell NFTs in one instance or in several. In the second case, the cost of one NFT will be lower.
What increases the chances of success:
– The fame of the author. For example, Pokras Lampas was known as an artist even before the NFT boom, and now tokens with his work are sold for several thousand dollars.
— The fame of work outside of NFT sites. Nyan-cat first became a viral meme on the network and only then the gif was sold as NFT. It is thanks to the already existing popularity that so much money was paid for this animation (almost $ 600,000).
– Exclusivity. The Twitter founder’s first tweet is truly one of a kind (sold for nearly $3 million).
– Your style. If you are a beginner, no one knows about you, but you want to sell on NFT platforms, develop your own unique style to stand out from your competitors.
PS: If you have an audience outside the NFT environment, try to promote your work on your own, and not just wait until the buyer notices you on the marketplace. They can pay attention to the product outside the sites and only then they want to buy it as an NFT.
*There are more marketplaces, the most popular ones are listed here. Plus, new platforms are emerging.
The essence of earning is to buy someone else’s NFT, then resell it at a higher price.
What you need to make money: cryptocurrency to buy NFT.
Nuances: a risky way to make money. There are no guarantees that it will be possible to sell the purchased NFT at all, and even more so profitably.
What increases the chances of success: the ability to determine which NFT will increase in price. Understanding when it is time to sell NFTs and at what cost. This process is somewhat similar to trading. For this type of income, it is useful to understand the trends of digital art.
In the network, such a phenomenon as the distribution of NFTs is called NFT Airdrops. Tokens can be given away by start-up projects or newcomers to the digital art field to attract attention. Also, tokens are periodically distributed to crypto game players. For example, a token for a game artifact. Sometimes tokens are distributed by NFT marketplaces. Over time, these NFTs can increase in value greatly. The essence of earnings is the sale of NFTs, once received for free.
A typical example is the blockchain project CryptoPunks, which appeared in 2017. The founders developed a cryptopunk generator that created a collection of 10,000 characters. Each character is a 24×24 pixel image with 8 bits. The first 5,000 tokens were given away for free, you only had to pay a small commission for issuing a token.
Now the cost of the cheapest NFT with cryptopunk starts from several tens of thousands of dollars. There are punks that are worth millions of dollars. Buyers of NFT CryptoPunks include Snoop Dogg and Visa.
What you need to make money on NFTs: follow the distributions, get your NFT, and then choose the right moment to sell.
Nuances: this is not a quick way to earn money. And there are no guarantees. And patience is also needed – the price of a once free NFT may not rise for a long time. Or not grow at all if the project fails.
What increases the chances of success: Intuition, which will help identify promising projects and works whose NFTs will increase in value over time. Alternatively, you can try to participate in the maximum number of hands.
Curious to know about the NFT games? Check out our detailed guide on the Top 5 NFT Games for 2022!
This is not an independent way to make money on NFTs, but additional to the previous three. The bottom line is to sell NFT (your own, redeemed or received at the distribution), get cryptocurrency for it, but not immediately withdraw it into ordinary money. And wait until the rate grows and earn extra on it.
But the method is risky, since the cryptocurrency may not grow, but rather fall in price. For such speculation, it is better to understand the topic of cryptocurrencies and the factors that affect their price.
Now, NFT payments are mostly made in the Ethereum cryptocurrency.
The essence of earning is to help novice authors, illustrators enter the NFT market. And then take a percentage of sales. Naturally, you need to be well versed in the subject of NFT, follow the trends and have a feel for what kind of work or what kind of artist will “shoot” in this market.
What you need to make money: find authors who are interested in mentoring and agree to pay a percentage of sales.
Nuances: if the author will exhibit works on his account and under his own name, then theoretically he can throw you and not pay a percentage. If the work will be posted under your name or brand, then not every newcomer will be allowed to give his work, as he may be afraid that you will already throw him. As an option – to conclude an agreement before starting cooperation.
What increases the chances of success: ready-made cases and the ability to present yourself as an expert in NFT. If you are an active author and have successfully sold your own work, this will be a plus and help attract an audience. That is, it is desirable to first develop a history in this area before taking on the production of newcomers.
It looks like the previous way to make money on NFTs, but here you get money right away – for consultations or NFT courses. In some ways, this is even better, since you don’t have to worry about whether you will be paid interest or not. You can agree that training or consultation is done on a prepaid basis so as not to lose anything.
What you need to make money: gain enough knowledge and experience on the topic of NFT, create a training program and start attracting students. You can create your own YouTube channel or start a blog on Instagram and promote paid education through these platforms.
What increases the chances of success: again, an established history in the NFT topic, so that they see you as an expert and want to learn from you. And they were willing to pay for it.
In the NFT topic, there are no standards at all now and no understanding of what will work and what will not. Often, banal luck and the influence on the market of newsbreaks help to make money on NFTs. If you are sure that your work can be in demand, you should try to submit it as NFT. Or experiment with other ways to make money on NFTs.