If you are a digital content creator, whether as a team or an individual, it is very easy for you to make money with NFTs.
With the mainstream promoting different NFTs and so many investors investing in them, NFTs has become the most talk about this year and one of the easiest way to make money online.
To make money with NFTs, you don’t need to have Full knowledge of blockchain technology. All you need to do is create a digital content and mint it on the NFTs marketplace and you are good to go.
There are certain things you need to know before you start your journey to make money with NFTs and that is what I will be covering in this post.
So without wasting much time, let’s get started.
Table of Contents
What is NFTS?
NFTs, or Non-Fungible Tokens, are a type of digital asset (similar to artwork, music art, and even virtual real estate) that is created and built under Blockchain and can be exchanged for fiat currency or other crypto assets.
Any digital asset can be converted into NFTs. For instance, a popular tweet, Instagram post, or Facebook post can be converted to NFTs and sold for profit.
The Blockchain technology on which an NFt is built is used to monitor its ownership and its transfer from one wallet to another.
Unlike cryptocurrency, NFTs cannot be duplicated, meaning they cannot be duplicated into units of ownership.
What is giving NFTs value?
Now that you know what NFts is, I know you will be wondering what gives it value.
Just like cryptocurrency, the value of any NFT is determined by the value people have on it, as it is not backed by the government or any other trusted body.
The feeling of being the right owner of such digital content is what drives the value of an NFT. Although pictures of any NFTs can be shared by anyone on social media or any platform, the Blockchain of which it is built still records the original owner of such asset.
How to create NFTs and sell them.
Now that you understand what NFTS is, let’s now talk about how you can create your own NFTs and mint it. Creating and minting your own NFT is very simple. All you need to do is upload your digital file to a marketplace and connect your wallet and you are good to go.
Although different marketplaces have different process on how to mint NFT, this guide will be very helpful to any of them.
Here are the steps you need to create your NFTs and sell them.
Step 1: Create a unique digital asset.
As said earlier, digital artwork, music art, and even virtual real estate can be used as an NFT, so what you need to do in this instance is create your own unique digital content that you will mint as your NFTs.
Step 2: Select an NFT marketplace.
Once you have created your unique digital content, you need to research the best NFT market place to mint your NFTs. Popular NFT marketplaces are OpenSea, Nifty Gateway, Foundation, VIV3, Rarible, SuperRare, BakerySwap, NFT ShowRoom, and Axie Marketplace.
Step 3: Link your cryptocurrency wallet.
Depending on the marketplace you are using, you may need to connect a cryptocurrency wallet. This cryptocurrency wallet will be used to pay you when you sell your NFTs. You can connect to Metamask, Coinbase, or any other crypto wallet, depending on your market place of choice.
Step 4: Upload Your NFT To Marketplace.
Depending on the marketplace you are using, you will be provided with a “create” icon to mint your NFT. Click on it and you will be prompted to upload your digital file and give it an NFT name.
Step 5: List your NFT for sale on the market:
Once you have uploaded your digital file to the NFT marketplace, you can now list your NFT for sale. You then specify the price of your NFTs based on any cryptocurrency of your preference and set the royalty fee for ongoing passive monetization of your work.
Also, NFTs market places charge some service fee for listing your artwork and it is usually specified. Just be aware of that.
5 Ways to Make Money With NFTs
Now that we have shown what an NFT is and how you can mint your own NFTs and sell them, let’s dive into ways that you can make money with NFTs.
1.Invest in Newly Minted NFTS.
One of the easiest ways to make money with NFTs is to invest in newly minted NFTs with potential. All the top-valued NFTs today were sold at a very cheap price before their prices skyrocketed.
The question now is how to know these newly minted NFTs with a future. Below are some of our tips for knowing the best NFTs to invest in:
- Check the history of the projects’ leadership. Check whether the owner of any NFts you want to buy has built a reputation in the NFT community.
- Check the transaction history of the NFT in question, analyzing the average trading volume and floor price.
- Check what other people are saying about the NFTs, like on trusted websites or on active social media platforms.
- Check out the NFTs project website and social media handles to see how far they’ve come.
2.Mint your own NFTs.
Another wonderful way to make money with NFTs is to mint your own NFTs. It is very simple to mint your own NFT; Just create your own unique digital asset and place it on a Blockchain, and you are ready to monetize it.
As the NFT market is booming every day with a high number of people minting different NFTs, you must make your NFTs stand out among others so you will be able to sell them.
With many people having different collections, the NFT community is a very competitive place, so for you to make sales, you need to be strategic in marketing your NFTs. Unless your NFTs are marketed very well, they will be blind to potential investors.
Just like in cryptocurrency staking, where you can lock your crypto asset on a DeFi platform for a specified period of time and earn some interest on it, some NFT platforms have started offering NFT staking opportunities to their users. Popular NFT platforms that allow their users to stake NFTs are Zookeeper and MOBOX.
Staking of NFTs helps to validate the transactions that occur on the Blockchain on which an NFT is built. Transaction fees charged on the process are used to reward users who are staking their NFTs.
Since the NFT market is at its infancy compared to crypto, NFTs staking are not popular across different platforms, but it will hopefully start advancing with time.
In the process of listing your NFT for sale on the marketplace, you can set a royalty fee for passive monetization of your work. A royalty is a percentage of your NFTs’ resale price that you will earn as the original creator.
Most NFT creators set their royalty fee at around 5–10%. although some set it higher than this.
Although setting a high royalty fee can create a higher passive income, NFTs with lower royalty fees are more attractive to investors because these royalty fees can cut into their profit. As a result, make sure you set a reasonable royalty fee for investors looking to buy NFTs. This will even increase your NFT resale rate and allow you to record a higher number of royalty, which will compound to a huge profit.
In a similar way to cryptocurrency trading, NFT can be bought and sold over a short period of time for a profit.
This process is more advanced than NFT HODLing, and anyone using it to make money with NFTs must have knowledge of some technical factors that help them understand undervalued NFTs and leverage them.
When compared to NFT HODLing, NFT trading returns smaller profits, but as it is done over a short period of time, multiple trades will return a compounded profit.
Although NFTs are, to some point, an easy way to make money online, they cannot be considered a get rich quick scheme. Before you can make money with NFTs, you must produce a unique digital asset fancy enough to attract investors. Not only that, you must employ some sort of strategy to promote your NFTs so that they can get across to potential investors.
Having read through this guide, you have all it takes to make money with NFT. You can ask us any question in the comment section below.
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