Non-fungible tokens or NFTs are taking the world by storm. Anyone in the crypto world is likely to know about NFTs. Even for those who are not so conversant with crypto, news about mega sales of NFTs on the internet may have attracted their interest. So, why are NFTs becoming so popular in the first place?
Before you can understand the popularity of NFTs, you must understand what they are. NFTs are unique blockchain-based digital assets that cannot be duplicated or changed. However, unlike your typical assets, NFTs only present real assets as digital certificates of ownership. So, you can have NFTs for digital artwork or physical assets like real estate.
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NFTs provide numerous opportunities for making money. Even today, the full potential of NFTs is yet to be exploited. Nevertheless, this emerging innovation has proved to be a great money-making window for investors who are keen on embracing it.
Selling NFTs
One of the easiest ways to make money from NFTs is by selling them. NFTs are digital assets and can have significant value. Some creators have developed NFTs and sold them for millions of dollars. Some of the most expensive NFTs ever sold include Pak’s ‘The Merge’ and ‘The Clock’ which sold for $91.8 million and $52.7 million as well as Beeples’ ‘Everydays: the First 5000 Days’ which sold for $69.3 million.
Royalties
This is particularly relevant for artists and other creators of art. You can earn royalties from your tokenized art even after selling it. NFTs use blockchain technology which ensures that the original owner of any NFT can be known. So, as the original owner of an NFT, you can include royalty as part of your terms before selling. Then, you will be earning royalty every time the piece changes hands as passive income.
Rent Out
You can also rent out NFTs for money. NFTs can represent any asset and this is where the gist lies. You can loan an NFT to someone for an agreed period and a certain amount of money. The individual will use the NFT for the specified period and pay the agreed amount but you will still retain ownership thanks to the blockchain technology.
NFT Gaming
You can use NFTs to participate in blockchain-based games where you can win money. If you are a good gamer, you can reap a lot from NFT gaming, which is a growing area. However, you can also develop your own game and tokenize it. That way, you will be making money when people sign up or play.
NFT Startups
Another great strategy for making money with NFTs is by investing in NFT startups. The idea is to scan the environment to identify promising NFT startups and invest in them. After some time, the startups will grow and start earning so much money. As an investor, part of this will be yours. NFTs are very promising and so investing in these startups can be a great way to make money.
NFT Trading
You can also decide to trade NFTs just like you would trade other assets like stocks. You can buy and sell NFTs for a profit. The underlying principle is that you will buy low and sell high. NFTs’ prices are highly volatile and hence the possibility of trading them. You can research the NFT market for NFTs that look promising and buy them. Then, you can sell them when the prices go up. However, it is important to know what NFTs are valuable and when to sell them.
Take Away
NFTs present numerous ways of making money from selling to gaming. However, opportunities are still emerging.
