NFTs have been popular for a while now as something with an inherent collectible value. Whether it is in the world of art, sports, fashion, or even social media, there is value in owning a piece of history. Case in point: Jack Dorsey, co-founder, and CEO of Twitter sold an NFT of the first-ever Tweet for a whopping $2.9 million dollars. It goes without saying that NFTs have been particularly attractive in the art world. Digital artworks have gone on sale for millions of dollars. As an added benefit, NFTs allow artists to interact with their fans on a deeper level by providing them with utilities such as access to exclusive events and merchandise.
So it is pretty obvious that NFTs are a huge draw for collectors. But what about them has common people like you and me so invested in them? The answer is simple. NFTs provide you with a great way to make some passive income. And NFTs, being one-of-a-kind, have different values attached to them on the basis of a variety of parameters like rarity, utility, and of course, popularity. With this in mind, you could turn a pretty penny on your NFTs. Curious? Read on to find out.
How to Make Money with NFTs?
Minting your own NFTs
The first one is the most obvious. If you are a creator, you could easily turn your content, be it art, music, or even memes, into NFTs. So how does one go about making their own NFTs? The process of minting an NFT is actually simpler than you might think. But before you tread the waters of NFTs, be sure to do your due research. Understand exactly what NFTs are, how viable it has been for creators like you, and of course, the legitimacy of your chosen platform.
It often helps to look through several marketplaces before settling on one that you think suits your needs. Once that is done, set up your crypto wallet if you don’t have one already. And the final step is to mint your NFT and list it on your selected platform.
Royalties
The next way to make money from NFTs is also more suited to creators. We have too often heard of artists not getting their due credit and royalties due to exploitative middlemen and labels. With NFTs and the blockchain technology they are built upon, this problem is eliminated. Artists can interact with their buyers directly and make sure that they set the rules for their work.
The smart contracts that are used for the buying and selling of NFTs let creators set royalties on their work. This means that every time their creation is bought on a marketplace, the artist gets a predetermined cut of the total sale price. This ensures that the creator can make a passive income from their NFT for a lifetime.
Renting out your NFTs
One of the biggest draws of NFTs is that they promise the owner complete ownership. But sometimes it so happens that a person may not want that. Especially in NFT gaming platforms, a potential player may simply want an NFT to scope out the game before investing in it. In this case, there is an option to rent an NFT.
This is also beneficial to the owner of the NFT as they can rent out their NFTs instead of letting them lay idle in their wallet. Talk about making your NFTs work for you! And you still reserve the right of ownership. With renting, too, smart contracts help set the duration of the rental period and return the NFT to your wallet once the time expires.
Trading NFTs
This is another very popular method of earning through NFTs. You can simply sell NFTs you already own and make a profit. Of course, you will have to conduct some thorough research on market conditions and see how much your NFT can go for. A host of other parameters may also come into play, and consulting an expert could be a good idea if you want to fetch the best profit.
Staking NFTs
This is pretty similar to staking cryptocurrency. By staking, you could “lock away” your NFTs into a DeFi protocol smart contract and earn rewards for the same. Some platforms also offer voting rights, letting owners share their opinions on projects and the like.
However, it is important to read up before staking your NFTs. Some platforms allow you to use any NFT, but some require that you buy the native NFT before staking. One plus in NFT staking is that you can reinvest your rewards in other platforms, getting you the optimum yield.
Yield Farming
Yield farming, very simply put, is the process by which investors can maximize their investments. By leveraging several DeFi protocols, you can maximize your return on investment with assets that are already yours to own. This can be done by leveraging the yields you have already obtained from one platform and investing them in another. You can see why this method has its appeal!
Investing in NFT startups
This is not the most direct way of earning through NFTs, but it is one that works. With Web 3 rowing in leaps and bounds, it is safe to say that NFTs are not a passing trend. By investing in the right startup at the right time, you could see a return on investment like never before. This especially works if you are looking to explore the NFT world without directly investing in them.
NFT Gaming
And finally, NFT gaming – arguably, the most popular way of earning through NFTs. Play-to-earn gaming is nothing short of a revolution in the gaming space. NFT gaming platforms are quickly becoming a craze among gamers and crypto enthusiasts. By completing missions and quests, players can earn rewards that can be exchanged for fiat currency. And of course, you can always sell your in-game assets on a marketplace and earn passive income that way. It also doesn’t hurt that these games are fun to play and are being considered a key part of the Metaverse.
Concluding Thoughts
In short, there is no shortage of ways in which NFTs can help you support your income. Will they ever replace traditional jobs is a question that is yet to be answered. But in the meantime, by doing the right research, and investing at the right time, NFTs allow you to make a passive income from your digital assets.
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