What is NFT? Let’s talk about it a little.
First, a few words about what NFT is. We are talking about non-fungible tokens in the blockchain chain. If such a definition does not tell you anything, then we will tell you in more detail and “on the fingers”. If you are already aware of or have read the previous article on NFT, just skip this paragraph and move on to the next one.
Almost everyone has heard about the concept of cryptocurrency. However, a reliable digital infrastructure is essential to its existence and servicing all transactions. Blockchain, a special decentralized technology for storing data (in this case, transaction data) in the form of a continuous chain of blocks, does an excellent job with this role. All information is stored and calculated in a decentralized way by many independent users. You cannot change the information in the blockchain, you can only create a new record, for example, about the sale (what, to whom and for how much) or the purchase of some object. This is how cryptocurrency transactions are serviced.
The blockchain is maintained not by some special services or services, but by numerous miners:
- store copies of the blockchain;
- service transactions (calculate new chain blocks);
- verify transactions;
- receive cryptocurrency per their work (mining coins).
However, the potential of the blockchain is much wider. If you can make a deal with cryptocurrency, then why not make a deal with something else? In this case, NFTs were invented – non-fungible tokens. Unlike a currency, you cannot replace such a token with a similar or identical one – each NFT is unique. You can only transfer or sell it. It is the simplicity of such a sale and the reliability of storing data about it that have become the key to the popularity of non-fungible tokens. To complete a transaction, it is enough to have a crypto wallet, and all information about transactions is stored in the blockchain.
Ways to make money on NFT
Who are the people who make money in this area? And most importantly, how? Below we have described the most affordable ways to make a profit.
Create your own token
If you already have experience selling digital content (say, you are an artist), then creating your own tokens can become another, most modern and trendy distribution channel. Photos, videos, music, graphics, animation – all this is sold and bought on numerous marketplaces, for example, Opensea.io.
We create a crypto wallet, use it to log in to the NFT market and produce our own tokens. Put them up for sale.
The marketplace itself does not guarantee you the sale of a token at all. A marketplace is just a place to make a deal. You will need to carry out all the promotion of tokens on your own and on other resources.
It’s worth starting with the choice of filling: what, in fact, to sell? To start earning on NFT from scratch, the collection value of the token is important. In the mass understanding, this is an exclusive and original right to own something. From what “shot” in 2021, the collection of CryptoPunks and Bored Ape Yacht Club should be noted.
The Bored Monkey Yacht Club mentioned above is not just an expensive digital picture. This is a membership in a closed club with secular parties. And the project grew from graffiti on the wall and private chat rooms on the web. Now a token with a monkey costs about half a million dollars.
Invest and resell NFTs
Those who are familiar with collecting may take the risk of dealing with digital trends. People still value exclusivity and the item should give the buyer the feeling of owning something truly unique.
The second component is touching the world of famous people. Celebrities are actively supplying their tokens to the NFT markets.
But this market is available not only to world names and corporations, but also to all people who want to invest in liquid currency. After all, in the article we mention only tokens that thundered and entered the history of cryptocurrencies, but in reality there are more than 1000 collections on various marketplaces at a price of $1.
Virtual NFT games to earn money
The fact that real money has been spinning in computer games a long time is not news to anyone. You can buy a pumped character, his skin, weapons, plot of land – anything, including in-game currency. Similarly, you can sell unique items. If you bought some asset at an early stage, then with the popularization of the game, its value grows.
Here are some examples of crypto games relevant in 2022:
• Gods Unchained is a card game on the ETH blockchain that you can even start playing is free. What if a strong card comes up at the start?
• The Sandbox – you can build objects and sell your work in the form of NFTs on the marketplace for cryptocurrency, because there is no direct income in the game.
• Axie Infinity is an NFT farm where you have to buy and develop pets. You can fight and reclaim land. There is a PC version and mobile versions. The bad news is that you first need to purchase three pets that cost $20 or more. Good – you can start playing is free by downloading someone else’s account at a certain fee.
Other ways to make money on NFTs
Oddly enough, you can make money on NFTs not only by buying and selling.
There are various options:
1. This is the production of other people’s NFT projects.
2. Boosting game characters for a fee,
3. Consultations on the placement of other people’s NFTs on marketplaces, etc.
4. Earnings on cryptocurrency courses. You can sell the token for the same amount of cryptocurrency that you bought. But due to the difference in the exchange rate relative to the real currency, you can get some benefit.