With the digital art sector booming in 2021 due to numerous costly NFT sales, more people than ever before are interested in making money from NFTs.
However, many investors are reluctant to decide due to the complexity of the Blockchain and the learning curve involved in gaining an in-depth understanding of NFTs. Furthermore, because of the inevitable links of NFTs to the cryptocurrency world, most people associate NFTs with scams and quick-enrichment schemes and do not believe that their use is legitimate.
As it turns out, there are many ways to make money from NFTs, as long as you are willing to invest your time or money and do research. In many cases, the approach you take will largely depend on your previous experience, skills, and the amount of time you can dedicate. On this note, we’ve compiled a list of some of the best active and passive ways to make money using NFTs, so let’s get started.
What are NFTs?
For those unfamiliar with NFTs, consider them merchantable digital receipts stored on a publicly distributed database, called Blockchain, which anyone can view at any time and freely. These digital receipts contain unique information that can use to prove the sole owner of certain items, whether they are tangible or intangible.
However, it is noteworthy that NFTs do not store the digital item they represent. Instead, they only point to the file’s location that exists elsewhere on the Internet.
Since two objects represented by NFTs are ever the same, NFTs cannot trade in the same way you can trade one bitcoin for another. That’s why they’re called “non-fungible” tokens.
- Minting and Selling Your Own NFTS
One of the most lucrative ways to make money in the NFT industry is buying and selling NFTs. NFT sales have reached millions of dollars since the beginning of 2021. With the space becoming more popular with the day, many investors are willing to buy NFT art at a premium, which means that if you have the skills, there may be an opportunity to take advantage. The good news is that becoming an NFT artist is much easier.
NFT Trading/Investing is one of the most popular ways to make money in this space actively. Like any other type of trade, there are usually two ways you can go about it, short term (such as scalping, day trading, or swing trades) or long term. The first of these two options require a great deal of time investment, and if you are a beginner, you are most likely to lose money while learning the ropes.
At the same time, there are many opportunities to make a profit. Put the game aims to understand the NFT market by keeping your ears close to the ground, listening to projects, and observing hype. You can buy NFTs cheaper and sell them at a profit as projects become more popular.
Play To Earn (P2E) Games
Believe it or not, now you can earn crypto by playing games. Thanks to blockchain technology and the basic principles of NFTs, a new sub-sector of the gaming industry has emerged. Usually, these games work like any other, but the items, assets, collectibles, and the in-game currency you earn are all traded and sold to other players. Surprisingly, thousands of workers in the Global South have replaced their full-time jobs with NFT games, with many earning double the average wage in their home countries.
Staking your NFTs is an excellent option for people looking for an easy and (relatively) low-risk way to generate passive income. Allows NFT holders to lock their assets across DeFi platforms for rewards without selling their NFT collection. You can lock up your NFTs and receive payments based on APY and the number of NFTs. The more you bet, the more you win.
Rent Out Your NFTs
NFT Rental is another way to profit from the world of gaming games. Many games in the NFT industry require a significant advance investment to participate in and start earning money from them, ranging from $1,000 to, 10.00 (or more).
As a result, you can buy the NFTs needed for those games and then rent them out to gamers who can’t afford them but still want to play them. These NFTs usually come in-game tools, characters, skins, or even land plots, and they often provide players with a competitive edge. Players pay lenders one percent of whatever cryptocurrency they earn in exchange for renting NFTs, whether they are fighting, farming, or racing online.
There are many ways to earn money with NFTs. Some require more time and energy than others. If you have the time and you want to delve deeper into the world of NFT, you may want to consider trying your hand at NFT trading, gaming to make money from playing, or you can sell your NFTs to sell them. If you prefer a more hands-off approach, methods like NFT stacking, renting, and long-term investing may be more suitable for you, as long as you have it worth your time. Have the capital needed to build it.