From popular brands like Gucci and KPGM to celebrities such as Snoop Dogg, everyone is investing in non-fungible tokens (NFTs). However, not all NFTs are made equal. Some of them are sold for millions, while some can be worthless. There is no question about the future of NFTs. One of the trending topics on internet is “how to make money with NFT”?Do I need to invest a high amount or a good plan is a key to success? Let’s find out some active and passive ways to make money with NFTs.
How to make money with NFT- the active way
An active income needs dedication and time, and if you are not good at it, you won’t get paid. Let’s find out active ways to earn money with NFTs.
Mint and Sell your own NFTs.
One of the lucrative ways to make money with NFTs is to mint and sell your own NFT. There are many examples for multi million-dollar NFT sales. With the space becoming incredibly famous by the day, investors are looking to buy NFT art at higher prices.
In other words, it is a golden opportunity to cash in your talent. You can easily mint and sell your own NFT to make good money with these tokens.
Play to earn (P2E) games
Do you know you can earn crypto by playing games? Yes, it is possible to make money in such an active way. Blockchain technology and the underlying fundamentals of non-fungible tokens are offering a new sub-sector of the gaming universe. In general, such games, including Axie Infinity NFT game, function like other games, but the collectibles, items, assets, and in-game currency can be traded and sold to players and also exchanged for real world money.
Many gaming enthusiasts have successfully replaced their jobs with NFT games as they earn double the average wage in their country.
NFT investing/trading is another excellent way to make money with NFTs. There are two ways of trading on other trading platforms, including short-term and long-term methods. However, they need some serious time investment to make money, and it is almost impossible for beginners to generate profit.
On the other hand, there are many opportunities to make money with NFTs. All you need is to understand the basics and rules of the NFT market by observing projects around you. When you have a good expertise, you can easily purchase NFTs at a low price and sell them for a decent profit when the project becomes popular.
Making money with NFTs- the passive way
The most appealing aspect of passive income ways is that you do not need to spend time and energy to make a profit.However, you have to invest a large amount of capital to earn money in your sleep. Take a look at these passive ways to make money with NFTs.
Renting your NFTs
One effective way to make money with NFT is to implement play-to-earn games. Most of the games in the NFT industry need a good upfront investment to participate and start making a profit from them. It may range from $1,000 to $10,000 or more. You can purchase the essential NFTs for such games and then rent them out to gaming freaks who can’t buy them but still looking to play games.
Such NFTs are available with in-game tools, skins, characters, and plots of land, and they offer the player a competitive edge. Players pay you a percentage of the cryptocurrency they earn in exchange for renting the NFTs.
One of the low-risk ways to make passive income with NFT, staking NFTs is another good choice. Staking allows you to lock your assets in DeFi platforms to obtain rewards without selling your assets. It means you can lock up NFTs and receive money or tokens based on the APY and the number of items staked. In simple words, more stakes mean more winning.
These conditions are added to the metadata of any NFT during the minting procedure. NFT Royalties, like those in the art and music industries, pay the creator a percentage of the future profits when an NFT is exchanged or sold on the market. However, the difference from traditional sectors is that NFT artists have full control over the established conditions, and the royalties are paid automatically in a trust-less environment.
In simple words, no written agree mentor contract is needed. Instead, NFT royalties will be delivered to the parties to whom they are entitled. Whether you are an artist or creator of digital content, you can easily make passive income from your project each time it is sold.
However, it is not a guaranteed passive income source because the numbers of royalties the creator will receive are determined by many external factors, including the owner of NFT desire to sell and also the existence of a willing buyer. Remember, the average royalty of NFT is between 5 to 10 percent.
There are many other ways to earn money with NFT. Some of them need more energy and time as compared to others.If you have time and want to explore the NFT world, it is better to go for NFT trading, create and mint your own NFT and play to earn gaming. Passive ways like NFT renting and skating are also good options for investors who do not have time.
Frequently Asked Questions (FAQs)
How does an NFT creator make money?
The original artist of the content creator of the NFT earns royalties or makes money through subsequent sales on the secondary platform. For instance, the creator first sells the NFT, and the buyer may then sell it to another investor in the secondary market.
How to invest in NFTs?
The first step is to research available NFTs and choose those that you feel have an upside value potential.Select an exchange to buy crypto, like Binance or Coinbase, then choose the platform to buy NFTs.
Is minting better than buying NFT?
Minting and buying NFTs have their advantages. If you have time and want to dive into the NFT world, minting is a better option. However, buying NFTs need investment, patience, and proper planning to sell NFTs for a high price.