Non-fungible tokens (NFTs) have taken over the crypto community, and many of these new digital assets have the potential to unlock real profits for people who learn how to invest in them correctly.
If you’re thinking about buying some non-fungible token assets, this guide will walk you through everything you need to know in order to make money with them.
We’ll begin by showing you how to mint your own NFTs and go over the ways you can make money with NFTs even without having to mint your own. So let’s get started.
What is NFTS?
Non-fungible tokens (NFTs) are unique digital assets created and launched on a blockchain network like ETH, Polygon, Solana, and others for monetization. This blockchain is used to monitor its transactions and make sure they are not mutated.
Today, many things can be turned into NFTs. For instance, a popular tweet, Facebook post, virtual real estate, music, art, etc. can be turned into NFTs by minting them on an NFT marketplace.
One key feature of NFTs is that they cannot be duplicated into units of ownership. This is contrary to what is obtainable in the crypto space.
What is giving NFTs value?
Considering the fact that NFTs are just normal JPEG files, questions like, “Why do people value them and how do they even make use of them?” might be on your mind right now. However, I am here to tell you that the value of NFT can be explained. Let’s explore this.
The major factors that drive the value of NFTs are the feeling of rightful ownership and also their utility. Also, its utility plays an important role.
For instance, some gaming platforms require ownership of some NFTs as a condition for accessing their services.
How to Create NFTs
Minting your own NFTs is very simple. First, you need to arrange your work, get a cryptocurrency wallet, look for a good NFT marketplace, and begin uploading your work to them.
The process of minting NFTs is not quite the same across all NFT marketplaces. The guide I am going to give here is not practical, but it will give an overview of how to mint NFT in any marketplace…
so, let’s get started.
Step 1: Create A Unique Digital Asset.
Before you talk about minting an NFT in a marketplace, you must have your digital asset ready for upload.
This digital asset can be anything you think. It can be pixel art, traditional art, music art, 3D models, or even popular social media posts.
So at this point, you need to get any of these assets ready, then get ready for the next step.
Step 2: Choose An NFT Marketplace.
There are many different marketplaces where you can mint and sell your NFTs. Even some popular crypto exchanges have started adopting this technology.
Popular NFT marketplaces are OpenSea, Rarible, Nifty Gateway, Foundation, VIV3, SuperRare, NFT ShowRoom, BakerySwap, and Axie Marketplace.
This marketplace has some associated service fees for minting or selling your NFT on the platforms.
So, at this point, you need to evaluate their services and popularity to determine which you will mint your NFTs on.
Step 3: Connect Your Cryptocurrency Wallet To The Marketplace.
Just like in cryptocurrency, NFTs are stored in a wallet. Different marketplaces have specific crypto wallets that they support. For instance, OpneSea supports metamask, coinbase, trust wallet, and others. So look for your convenient wallet and set up an account.
Step 4: Deposit ETH Into Your Cryptocurrency Wallet.
Every NFT minted is being deployed on a blockchain, and as we know, transferring or storing an asset on a blockchain has some associated fees.
Popular blockchain networks used to mint NFT are ETH, Solana, Polygon, and Amon. Of these three, ETH is the most used.
So, if you are using the ETH blockchain, you must fund your wallet with ETH to cover minting fees on your marketplace.
Step 5: Create An NFT On The Marketplace.
Minting your NFTs on any marketplace is very simple. You just need to upload your digital asset, give it a name, choose a blockchain, and deploy it by listing it for sale.
4 Ways to Make Money With NFTs
There are many ways that you can make money with NFT. It can be through royalty, NFT staking, sale of your NFT, trading, and more. Let’s explore this one by one.
1.Invest in Newly Minted NFTS.
If you are not a creator, the most common way that you can make money in the NFT space is to invest in newly minted NFTs with potential.
Most of the NFTs being top-sold today were less valued at some point. Some of them were even given out for free later. So find any newly minted NFT and buy them for resale when they appreciate in value.
You can note the potential of NFTs by evaluating their utility, the owners’ history, and what people are saying about the NFT on social media.
2. Create your own NFTs.
Another smart way to make money with NFTs is to mint your own and sell them. If you are an artist, then minting your own NFTs should be your next step. Just go to the marketplaces, study how different NFTs are created, and think about how you can design your own.
Even non-artists are not left out of this, as there are many AI platforms that you can use to generate your NFTs and start marketing them.
So, now that you have known this, why not take the first step?
While you take the steps to mint your own NFTs, I must remind you that extra work is needed to make money from your work.
The NFT community is becoming saturated with creators, and for you to sell your NFTs, you have to invest in promoting your work. Unless your NFTs are marketed very well, they will be blind to potential investors. Just be aware of that.
Some NFT platforms have begun providing their users with options for NFT staking, much like cryptocurrency staking, where you can lock your cryptocurrency asset on a DeFi network for a set length of time and earn interest on it. Zookeeper and MOBOX are well-known NFT platforms that let their users stake NFTs.
Staking helps to validate transactions so that the fees charged for the transaction are used to pay the people who stake their assets.
NFT staking is not widespread across various platforms because the NFT market is still developing compared to cryptocurrency, but it should gain popularity over time.
4.Earn From Royalties.
Apart from selling your NFTs to make money, you can also set a royalty fee for passive monetization of your work.
An NFT royalty is a percentage resale price that you earn as the original creator when your NFTs are resold.
While minting an NFT, marketplaces allow you to set a royalty fee of around 2–10% of the resale price.
For instance, if you set a royalty of 10% and your NFTs are resold for $1000, you will earn $100. Isn’t that awesome?