In our article about What are NFTs and how do they work, we told you what non-interchangeable tokens are and why they are popular. In this one, we’ll talk about how to make money with NFT.
What will be in the article: the analysis of ways to earn on NFT and the nuances that beginners usually don’t guess.6 ways to make money with NFT
Let’s start with the hardest:
1. Create your own NFT
The essence of earnings – you put your work on the marketplace, NFT is assigned to it. If they buy it for cryptocurrency, you output the crypto in regular money.
What you need to make money: a digital file, which can be put up for sale. It can be a picture, photo, video, animation, text, e-book, music, any digital file.
The work must be created by you and be unique. Just take a picture from the internet and set it up as your own creation will not work. Even if it is a graphic processing of someone else’s image – it has to be your processing.
You can sell NFT in one or several copies. In the second case, the cost per NFT will be lower.
- you need skills to create digital art, and in some ways, talent;
- NFT is already highly competitive – hundreds of thousands of works hang without sales, you need to be able to snag potential buyers;
- sometimes costs are required – some sites charge a commission for registration + a commission for each NFT creation even before sales. The amount of commissions can be around $100 per NFT. That is, it would take about $1,000 to upload 10 jobs and there is no guarantee that it will pay off. But there are marketplaces where the commission is taken already on the fact of the transaction;
- Marketplaces have different entry thresholds, for example, at NiftyGateway they select famous authors or those whose work the site will be interested in. Newcomers can start with more democratic platforms, such as Rarible and OpenSea.
Which increases the chances of success:
– Author fame. For example, Pokras Lampas was known as an artist before the NFT boom, and now tokens of his work sell for several thousand dollars.
– The fame of the work outside of the NFT venues. Nyan Cat first became a viral meme online and only then was the gif sold as an NFT. It was the already existing popularity that paid so much money (almost $600,000) for this animation.
– Exclusivity. The Twitter founder’s first tweet is truly one-of-a-kind (was sold for almost $3 million).
– Style. If you’re new, no one knows about you, but you want to sell on NFT platforms – develop your unique style to stand out from the competition.
P.S. If you have an audience outside of the NFT environment, try promoting your work yourself instead of just waiting for a buyer to notice you on a marketplace. The work may get noticed outside the marketplaces and then want to buy it as NFT.
Where to sell NFTs:
*There are more marketplaces, here are the most popular. Plus there are new marketplaces popping up right now.
2. Reselling NFT
The essence of earnings – you buy another’s NFT, then resell it more expensive.
What is needed for earnings: the cryptocurrency for the purchase of NFT.
Nuances: risky way to make money. There is no guarantee that you will manage to sell purchased NFT at all, much less profitably.
What increases the chances of success: the ability to determine which NFT will grow in value. Understanding when it is time to sell an NFT and for what price. The process is somewhat similar to trading. For this type of earning, it is helpful to understand digital art trends.
3. Participate in NFT giveaways
Online, such a phenomenon as NFT giveaways is called NFT Airdrops. Tokens can be given out by startup projects or digital art newbies to get attention. Tokens are also occasionally given away to crypto game players. For example, a token for a game artifact. Sometimes tokens are given away by NFT marketplaces. Over time, these NFTs can increase in value a lot. The point of making money is to sell NFTs once obtained for free.
A typical example is the blockchain project CryptoPunks, which appeared in 2017. The founders developed a cryptopunks generator that created a collection of 10,000 characters. Each character is a 24×24 pixel picture weighing 8 bits. The first 5,000 tokens were distributed for free, you only had to pay a small fee to issue a token.
Now the cost of the cheapest NFT with cryptopunk starts at several tens of thousands of dollars. There are punks that cost millions of dollars. Snoop Dogg and Visa are among the buyers of NFT CryptoPunks.
What you need to earn: follow the handouts, get your NFT, and then choose a good time to sell.
The nuances: this is not a fast way to earn money. And there are no guarantees. And you also need patience – the price of once free NFT may not grow for a long time. Or do not grow at all if the project fails.
What increases the chances of success: a flair that will help identify promising projects and jobs, whose NFT will eventually grow in value. As an option – you can try to participate in as many giveaways as possible.
4. Earn on changes in the rate of cryptocurrency
This is not an independent way of earning, but additional to the previous three. The idea is to sell NFT (your own, repurchased or received at giveaway), to get cryptocurrency for it, but not to withdraw it at once into common money. But to wait until the rate increases and earn extra money on it.
But this method is risky because the cryptocurrency may not rise, but rather fall in value. For such speculations, it is better to understand the topic of cryptocurrencies and the factors that affect their price.
Nowadays, NFT is mostly settled in the cryptocurrency Etherium.
The essence of earnings is to help beginning authors and illustrators to enter NFT market. And then take a percentage of the sales. Of course, you should have a good understanding of NFT theme, watch for trends and have a feeling which work or which artist will “shoot” in this market.
What you need to make money: find authors who are interested in mentoring and agree to pay a percentage of sales.
The nuances: if the author will exhibit the work on his account and under his name, then theoretically he can bail on you and not pay a percentage. If the work will be posted under your name or brand, not every beginner will allow you to give his work, because he may be afraid that you will cheat him. As an option – to conclude a contract before the start of cooperation.
What increases the chances of success: ready-made cases and the ability to present yourself as an expert in NFT. If you are an existing author and have successfully sold your own work – this will be a plus and help attract an audience. That is, it is desirable to first build up a history in this field before taking on the production of newcomers.
Similar to the previous way of earnings, but here you get money at once – for consultations or courses on NFT. In some ways, this is even better, since you do not have to worry about whether you get paid a percentage or not. You can agree that the training or consultation is done on a prepayment, so as not to lose anything.
What you need to do to make money: gather enough knowledge and experience on the topic of NFT, create a training program and start recruiting students. You can create your own channel on YouTube or start a blog on Instagram and promote paid training through these platforms.
What increases the chances of success: again, an established history in the subject of NFT, so that they see you as an expert and want to learn from you. And were willing to pay for it.
In the subject of NFT nowadays there are no standards and understanding of what will work and what will not. Often it is trivial luck and the impact on the market infopodov. If you’re confident that your work can be in demand – it’s worth trying to put it out there as an NFT. Or experiment with other ways to make money.