So you’ve heard of NFTs and how some people have made money with them. NFTs are the latest cryptocurrency sensation to go mainstream. If you are an entrepreneur or a small business that creates some form of digital content, it makes sense for you to learn the ropes of the trade to make money from NFTs.
You may have heard of the 24 year old artist who has earned over $ 300,000 selling his art as an NFT or Rob Gronkowski sells NFTs of his best Super Bowl moments. With this news hitting social media, it’s no surprise how quickly NFT has become famous with more and more people hitting the bandwagon.
Understanding them is the first step to making money with NFTs. We will provide you with a brief explanation of NFTs and how to make money with NFT by selling them. Let’s start by explaining what exactly NFTs are.
What are NFTs?
NFTs or non-fungible tokens are pieces of crypto tokens that exist on a blockchain. They are used for real world objects such as works of art, musical art, and even real estate, but on a virtual basis. Unlike cryptocurrencies, NFTs cannot be traded or traded because they are not identical to each other.
Think baseball cards or a collection of rare coins. NFTs create a scarcity among assets that are otherwise endlessly available. They are typically used to buy and sell digital items like tweets, artwork, game skins, and virtual real estate.
2021 has been a year of growth for NFTs, with sales reaching $ 2.5 billion in the first half of the year. There are two ways to make money with NFT. The first is to sell your original content as an NFT.
How to sell NFTs?
NFTs are generally sold on marketplaces with different processes depending on the platform of your choice. Essentially, you’re going to upload your content to the Marketplace, turn it into NFT, and wait for it to sell. It’s very similar to Amazon or Etsy. If you already have a copyrighted digital content portfolio, here’s what you need to do next:
1. Select your market place, create the NFT and associate the portfolio
There are dozens of marketplaces to choose from. These include OpenSea, Axie Marketplace, Rarible, SuperRare, and Mintable. Take a look at these markets and select the one that best suits your content.
Your next step is to “craft” the NFT. Simply put, striking an NFT is the process of turning the digital file into a crypto collectible or digital asset on the Ethereum blockchain. While it might seem confusing, most, if not all, markets will provide a step-by-step guide on how to build your NFT right on their platform.
Once you have selected the market, you will need to link your funded cryptocurrency wallet. After that upload your digital file and go through the process in the market of your choice. Each platform will have different processes and allow you to either sell the item as a one-time purchase or earn royalties.
2. NFT list for sale
Once you’ve filled in the information and your file is uploaded and created, it’s time to put it up for sale. After you put it on sale, you will notice that the market will calculate the “gasoline charge”. This is an Ethereum blockchain network fee to record transactions. These fees vary depending on the occupation of the network. The best way to reduce these fees is to list your product during off-peak hours, depending on the market.
Can I trade NFTs?
Yes you can. This is the second option for making money with NFT. The sale of NFT is not restricted to creators. Some entrepreneurs and investors use NFTs like stocks and profit by buying and selling them. If you’ve already purchased a collection of NFTs and no longer need them, you can easily sell them the same way as if you had to create them yourself. The only step you will skip is the typing process.
The trick to trading NFTs is knowing when to sell them. The right time to sell a TVN will depend on what it is, why you bought it, and your interest in the item. A quick internet and market research can help you determine this.
You will also need to take price appreciation or depreciation into account. Calculate your potential profit and loss by including additional costs such as gasoline costs, market listing fees, and royalties paid to the original owner. These fees will ultimately reduce your final take-out amount.
For more complex NFT trading that requires in-depth knowledge of the cryptocurrency industry, you may want to consider consulting a professional. Since NFTs are relatively new, you can look for freelance sites to hire someone who can help you.
What is the future of NFTs?
The future of any blockchain experiment is unknown. However, experts predict that NFTs are here to stay and will continue to grow beyond the arts and games realm, especially if high net worth investors keep investing the money.
The growth of NFT can also be attributed to its features which can represent proof of ownership, provide social status, grant exclusive access, manage licenses and certify authenticity. It allows you to own your products in the same way that Bitcoin allows you to be your own banker.
It’s important to remember that while the process of selling NFT may be straightforward, it may not be as easy as it looks. Hitting your content and selling it will incur market and Ethereum costs which can be significantly high depending on when you put it up for sale. Trading in NFT can come with some uncertainties, given the volatility of this young market.
The best way to make money with NFT will vary from person to person. If you or your small business having money to spare, you can choose to buy an asset that will bear interest over time and sell it when it appreciates. If you are a content creator, your best option would be to use NFT as an alternative way to monetize your talent.