When the Bitcoin cryptocurrency was created based on blockchain technology, a lot of people found it attractive. The blockchain was used as a public ledger to record transactions with the cryptocurrency and this made it safe and accessible.
Additionally, the cryptocurrency was managed by the Internet community and didn't require the intervention of any government or controlling body, which gave additional freedom to its users.
These were the main reasons for the initial success of Bitcoin. However, as its popularity grew, so did the demand for it. The price of Bitcoin skyrocketed and those who possessed cryptocurrency assets received huge benefits.
Since then, cryptocurrencies have been considered not only a means of carrying out safe financial transactions but also a way to earn money playing on the fluctuations of their value.
However, now a new digital phenomenon has emerged to compete with cryptocurrencies in this last function. That phenomenon is NFT, non-fungible tokens.
On the one hand, NFTs are similar to a cryptocurrency in that they are also registered on a blockchain. The information about all NFT transactions is public and can easily be checked, so it is equally safe as cryptos.
On the other hand, there is a substantial difference between the two of them. Similarly to real-world money, Bitcoin or any other cryptocurrency is fungible. This means that each unit of the currency equals any other unit. For example, if someone possesses 50 bitcoins, they are as rich as any other person having 50 bitcoins.
This does not apply to NFTs. As its very name indicates, NFTs are non-fungible and so, each of them is unique and has its own particular value. Additionally, NFTs are created to represent existing digital or even real assets.
Unlike crypto-currencies, whose price largely depends on the demand, the value of each NFT is determined by how popular the corresponding asset is. Consequently, investing in NFT is a completely different process from making money on crypto.
Among items minted into NFTs, you can find works of digital art, tweets, video clips, music and even video game characters. To cut good deals, you will need to spot the most promising ones among them and choose the right moment to buy and sell them.
Hence, someone who'd like to get into NFT should focus on the area they are familiar with and where they can sort the wheat from the chaff.
At the same time, this particularity makes NFT trading more interesting than speculating on the exchange rate of crypto. You can discover new artists and creations in the process or have fun playing a video game to raise the value of your assets.
In this article, we will have a look at the ways to make money on NFT in more detail. If you feel like the definition of NFT still escapes you, you can first have a look at our article explaining this digital technology and what you need to buy it.
Become a digital art collector
For a long time, buying art has been an excellent way to invest money. Good works of art are unlikely to lose their value with time and some can even become very expensive if the artist who made them suddenly becomes famous. The same applies to digital art.
Even though digital creations are often freely accessible on the Internet and millions of people see them, being their actual owner can still bring satisfaction to a collector.
To draw a parallel between digital and physical art, displaying a work you've bought on your social media for your subscribers is similar to exhibiting a painting in your sitting room where your guests can see it. In both cases, art is a source of prestige and aesthetic pleasure.
What you need to make good money on digital art is to be able to identify promising works by rising artists. When a creator is still unknown, their art will hardly cost a lot of money despite its quality, so with time, you can get very good margins.
What's more, buying art from beginning artists is a way to support them in the creative process. Producing high-quality work takes time and effort, so some crypto on their wallet will not be superfluous.
Find out how to create NFTs in our article
Creating an online gallery
Social media is just one place where a collector can exhibit their art. An alternative way to share and make money on your digital art collection is to create an online gallery.
In such a gallery, you can put on display all the pieces of art you have and sort them by themes and categories. Then, you can sell ad space on your site to profit from the number of visitors or set a price for getting access to the collection.
Of course, in the beginning, such a gallery may not be lucrative but as your collection grows, things may change quickly. Additionally, a digital art gallery can help your pieces of art gain fame, so their value will take less time to rise.
Utilise NFT as a digital artist
So far, we have focused on the benefits of NFTs for art collectors, but it can, of course, be an excellent tool for artists as well. The problem with selling digital art is that you can copy it infinitely, so its authenticity cannot be understood in the same way as that of, say, a physical painting.
This issue is exactly solved by NFTs. In a way, instead of proving the authenticity of a piece of art, a non-fungible token proves the authenticity of its owner.
When you create an NFT, the token is added to your crypto wallet and you automatically become the certified owner of the corresponding work. You can then put it up for sale or auction. The selling of the NFT will transfer the ownership to the buyer and you will get rewarded for your creative work.
Nowadays, a lot of artists are exploring the benefits of NFT and some of them have even made fortunes from it. The most impressive example is the sale of Beeple's work for some 69 million USD. Of course, emulating this record can be somewhat difficult but, for a lot of digital artists, even a smaller reward would be welcome.
NFT is a new and growing area, seeing a variety of new trends. One of them is the possibility for users to stake their NFTs and get benefits in real money.
It works similarly to depositing money in a bank and receiving interest from it. Generally, when you stake NFTs, they get locked on the platform you use for a certain time, but you don't lose their ownership.
Staking your NFTs can be an excellent solution while waiting for their value to increase. Instead of just keeping them in your wallet, you can make them yield benefits without practically any risk.
Some of the best websites on which you can stake your NFTs are:
- Band NFTs
- Doge Capital
- Polychain Monsters
The money you can make on staking NFTs generally depends on the size of your NFT collection and the period you are ready to lock them for.
Earn money with fun in a video game
A lot of people see games as entertainment you can indulge in your free time. However, in the last years, a new type of "play to earn" game have developed that allow the players to make real money.
Of of the most famous example is Axie Infinity which sells characters in form of NFT tokens. Every player needs to buy a character before they can enter the game and they can sell them whenever they want on Asie Infinity or another marketplace, like OpenSea. If you want to learn more about marketplaces where to send your NFTs, have a look at our article on the topic.
The main objective of Axie Infinity players is to level up their characters to compete with other gamers and take part in PvP-battles. As you can imagine, the stronger your character is, the bigger its value will be.
This basically means that you can just have fun playing the game and completing missions and once you don't need your character anymore you can resell for a bigger sum of money than you initially invested.
Asie Infinity is the most successful NFT game on the Internet, but there are also other projects that may interest you. Some of them are:
- The Sandbox
- Ember Sword
Renting your NFTs
As NFT games gain popularity, a lot of people want to try them out but aren't ready to invest money into their own character. A good solution for them is to rent someone else's character for a fixed time.
As a gamer, you can provide them with that character and get a financial reward in return. You can determine the time during which to lend your character as well as the price.
Gamers having big collections of NFT video game characters can have a good revenue from renting them while they level up new heroes.
Find out about different ways to use NFTs in our article.
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