If you have been paying even the slightest bit of attention to the digital world then you know that many creators have been making money with NFTs or non-fungible tokens. A 36-year-old photographer made over $100k, a digital artist made $274k and everyone is aware of Beeple’s NFT “Everydays: The First 5000 Days” selling for over $69 million.
Although numbers this extravagant isn’t common for the average creator, it’s still enough to drive curiosity. But, before you dive into making money with NFTs, you have to understand how they work.
Each NFT is tied to a digital asset of the original owner and can be traced back using blockchain technology. NFTs are immutable creating scarcity which is what makes them valuable. People can use their current skills to make more money with just a little bit of research and understanding of the market.
Selling digital assets can provide numerous benefits as a secondary form of income as well as exposing you to firsthand experience in the NFT market.
When you sell NFTs, you must consider gas fees as they can take away from your profit. There are costs involved with minting and selling so researching platforms would be recommended before any selection is made.
Collectors have found interest in buying and trading NFTs. The process is the same as selling without minting. The trick to successfully generating a profit through trading is knowing when to hold and knowing when to sell. The research will play a major role in trading as you will need to understand the market what other collectors are interested in to make a profit.
NFT collections increase the allure of trading because they tend to be the most popular in the market holding extensive value. When trading a collection you will need to consider the project’s creators, its audience, if it has high selling potential and how it differs from other collections.
One of them may be slightly more challenging to earn extra money with as they may not be an immediate flip but the exclusivity behind the NFT will undoubtedly produce a higher price if marketed properly.
Be sure to always trade NFTs on reliable platforms to avoid any scams or loss of investment.
Making Money With NFTs Without Owning One
There are ways to make money by actually owning a single NFT. Freelance jobs look for social media managers or those experienced in coding, sales, or even content creation. There are even different opportunities for developers, artists, human resources workers, salespeople, and marketers.
People can use their current skills to produce a side hustle in NFTs. If you can draw, design, build, write or even customize physical products, you can start a business of turning a person’s digital NFT into a physical item.
Crafts are not something you initially think about when thinking of NFTs but some people would love to see their digital assets come to life in the form of clothing, accessories, pins, coffee mugs, or even canvases that would showcase the NFT.
As a programmer, you would have the option to work with blockchain and NFT development or build marketplaces and platforms for an NFT community.
Designers can take on the task of creating NFTs for someone looking to develop a project but is not as artistic.
Unlike a typical website creator, an NFT website creator would need to be well versed in blockchain, UI, crypto, and smart contracts to say the least. NFT websites are created to promote NFT projects, host marketplaces, or even as an informational platform.
As an organizer, you can generate profit as a freelancer by managing NFT sales, creating a marketing campaign for a project, customer relations, educational onboarding, or as a discord manager.
In the realm of social media, you can become an influencer posting informative content or promoting projects. This can include but is not limited to YouTube, Podcasts, and platforms such as Instagram or Facebook. You could also manage social media accounts for creators.
A freelance writer can make money in different ways. Writing blogs or articles for different publications, copying for websites, platforms, or marketplaces, or even turning their work into an actual NFT and capitalizing on royalties in the secondary market.
Many freelance job postings tend to be on platforms such as Upwork or LinkedIn.
Liquidity in NFT is the ability to quickly trade an NFT for cash. This provides investors to invest with the relief of knowing they can liquidate their assets for cash if need be.
When you invest in an NFT you are investing in a token that represents the ownership of a physical item. Because the community decides the value of the NFT, a token’s liquidity is dependent on the market cap, volume, and blockchain it’s minted on. So, with an NFT, liquidity would be the number of tokens that can be traded.
Since NFTs have a fixed supply there is a need for secondary marketplaces where supply is not fixed in order for more units to be traded. This would raise the token price essentially making the NFT a more valuable asset.
Players can monetize their time simply by playing video games with play-to-earn. NFT games mostly take place in virtual worlds such as Sandbox where users can build platforms to earn, own and monetize their experiences. The Sandbox allows new users to get a free NFT just by creating an account which makes it affordable with the option to earn a lot of money.
These play-to-earn games offer rewards in the form of an NFT and users are able to sell an NFT earned on a dedicated market; this is considered staking.
Making money with NFTs will vary with each person. You have to decide what skills you can monetize and what resources you have at your disposal.
Although the future of NFTs is still up for debate, it is safe to say that with a significant amount of research, making money in this market will be beneficial to anyone dedicated to the process.