While you are reading this text, someone will create an NFT and become a millionaire. It might even be a coincidence. Or just a one-in-a-million lottery. Despite the fact that the first non-fungible tokens appeared several years ago, last year the market began to grow sharply and exceeded $40 billion. Although non-fungible tokens remain a controversial asset, global corporations, artists and all and sundry began to create them.
Earlier we told you what non-fungible tokens are and why they are popular. And now let’s talk about how to make money on NFT, analyzing each option for earning.
Airdrop as a way to earn money in the NFT
Token giveaways are a common occurrence in the crypto industry. Often, as a result of an airdrop, you can also become the owner of an NFT. Here, too, there are several options:
Distributions for token holders (NFT holder airdrop)
As a rule, they are held by new projects to attract the attention of the audience and investors. To become a participant in the distribution, there is a prerequisite – you need to have project tokens. Sometimes these airdrops bring huge profits.
For example, Bored Apes gave away a “serum” that turned bored monkeys into monsters. The maximum offer to one of the owners of such a monkey who received a free “serum” was 269 ETH (more than 900 thousand dollars at the time of the offer and over 800 thousand in the third decade of April 2022).
Distributions from marketplaces (NFT platform airdrop)
Basically, new trading platforms delight early users with gifts. At the same time, the frequency of receiving free NFTs depends only on the time of registration. A user may not have sales, placements, or purchases at all, but if the account is among the first to appear, developers will remember about it in almost every promotion.
Giveaways for everyone
As a rule, they are carried out by beginner NFT projects, which count on the growth of user interest. To get them, you have to work a little. Most often, you need to subscribe to Twitter and (or) discord, retweet one or more entries, or invite a new user.
However, these efforts are worth it. For example, The CryptoPunks gave away 5,000 punks in 2017 with the condition of paying for the creation of an object and recording it on the blockchain. Today, the offer for the cheapest punk is in the range of $100,000, while the most expensive sells for $90.5 million.
What you need to make money: 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 you also need patience – the price of a once free token may not grow 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.
Create your NFT
The essence of earning – create NFT on the marketplace. If it is bought for cryptocurrency, withdraw the cryptocurrency into regular 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, have a certain value and be unique.
- you need skills to create digital art, and in some ways talent;
- NFT is already highly competitive — hundreds of thousands of works hang without sales, you need to be able to hook potential buyers;
- sometimes costs are required – some platforms charge a registration fee + a fee for each creation of a token even before sales. Fees can be around $100 for 1 NFT. That is, it will take about $1,000 to upload 10 works, and there is no guarantee that they will pay off. But there are marketplaces where the commission is already removed upon the fact of the transaction;
- marketplaces have different entry thresholds, for example, NiftyGateway selects well-known authors or those whose work the platform will be interested in. Beginners can start with more democratic platforms, such as Rarible and OpenSea.
NFT games or “play to earn”
Blockchain technologies allow gamers around the world to do what they love and earn huge amounts of money at the same time. Every blockchain based game has its own ecosystem and economy. Players can receive various NFT items for their achievements in the game, which can later be sold on secondary markets. In this way, you can make good money using NFT games. In addition, traders are engaged in the sale and purchase of in-game items on secondary markets, fixing profits.
Perhaps the most successful project in this area is Axie Infinity. Total sales of in-game items is 1,381 429,245. A million players today have a stable income thanks to this game.
Reselling NFTs (NFT trading)
The essence of earning is to buy someone else’s NFT, then resell it at a higher price. This is the most massive and popular way to earn money.
What you need to make money: cryptocurrency to buy a token.
Nuances: often participants receive several thousand percent of their own investments in successful objects. However, the risks are also high – 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 token will increase in price. Understanding when it is time to sell NFTs and at what cost. For this type of income, it is useful to understand the trends of digital art.
How to make money on NFT with staking? This way of earning is suitable only for NFT owners. In order to receive passive income, the holder pledges the token by placing funds in staking pools or by buying/renting full nodes. The yield is low and can be up to 15-20% per annum. However, there are undoubted advantages here – the invested capital does not lie idle, waiting for the further resale of the object, but brings a stable income.
There are a lot of ways to make money on NFTs. This area is actively developing. Often, banal luck and the influence on the market of newsbreaks help to make money. Therefore, you should not lose the opportunity to earn big money and change your life for the better.