Suppose you are an artist and have a unique art collection but are unable to sell it at a valuable price! Is it good? Of course, no. Every artist deserves to get the right value for their art.
NFT (non-fungible token) marketplace is such a platform that allows artists to sell their unique art pieces in the form of digital assets at the right price.
The craze of NFTs is increasing day by day and more people and businesses are taking interest in this sector. Currently, NFT has become a hot new trend in the American economic landscape packed with a lot of new venture capital opportunities.
The reason why businesses are investing in this domain is monetization. NFT marketplaces are providing huge revenue and profits to enterprises via creating, buying, and selling NFTs.
Now, here comes the question of how do NFTs make money, and believe us a lot of artists and businesses are looking for its answer. In this article, we have penned down details about NFT along with the ways through which businesses can make money. Let’s jump onto that-
What is NFTs?
NFTs are tradable digital receipts compiled on a public distributed database known as Blockchain. It can be seen by every user and verified independently all the time. NFTs contain unique data used to prove the ownership of specific items along with the knowledge if they are tangible or not.
NFTs can’t be changed or replicated as each NFT is different from the other. NFT platforms don’t store the digital assets they are presenting. Despite that, they point to the file’s location simply belonging to the web.
Popular Non-fungible Token Marketplaces
While having NFT development services, there are various popular NFT marketplaces you must consider for reference. These will also help you to know how you can make money by selling NFT on these platforms. Here are they:
How to Create NFTs?
It is significant to know how to create NFT before getting to know how to make money from NFT. An efficient NFT platform will help to earn money that has been the topmost priority of many ventures’ enthusiasts, and entrepreneurs. Before looking at the steps, keep in mind that NFTs have unique attributes. This procedure to create NFTs is known as ‘Minting’. Here are the following steps to set up an NFT-
- Don’t just jump into the NFT development, first consult with a leading NFT development company and make sure you have all the knowledge about the NFT domain.
- Do all the market research about the NFT platforms and then, firstly you have to buy cryptocurrency to make yourself able to pay in the NFT domain. After that, create a digital wallet to buy the NFT.
- Also, decide on which platform you want to sell your NFT.
- After that, add the cryptocurrency to your crypto wallet and connect the wallet to the NFT marketplace and set it up.
- Later, you must upload the file that you want to convert into the NFT and then, list the created NFT on your chosen platform.
- Now, you can set up the auction for the NFT you created and sell it at the highest price offered to you. This is how the non-fungible token development process works.
What Makes an NFT Valuable?
The more interest consumers will show, the more value NFTs will get. It is how it works in the hypothetical NFT art collection. There are two major factors, the rarity, and the base of fascinated consumers that affect the worth of NFT, like card trading. An image might be turned into an NFT but there is no exclusion to prevent it from getting shared or copied.
Though, the Blockchain has all the data and can clearly state who is the asset owner. The NFT ownership can’t be fake by any consumer. The ecstatic sense of having limited NFT ownership is one of the primary causes of the increasing value of NFT. Majorly, the way people and businesses are earning money and realize the NFT value is due to onward sale.
Most Exclusive Non-Fungible Tokens
We have come up with a list of the most expensive non-fungible tokens users are much interested in. This list is useful to clear your doubt about ‘can you make money from NFT’. Many of them have sold for around $100 million and some of them got more value than this. Have a look below-
- The Merge- $91.8 Million
- The First 5000 Days- $69 Million
- Human One- Around $29 Million
- CryptoPunk #7523- Around $12 Million
- CryptoPunk #3100- About $7.5 Million
Different Ways to Make Money with NFTs
Are you also wondering how to make money with NFT? Just sit back and relax as we are going to discuss the ways that will fulfil the main purpose of creating and selling NFTs. Get to know how you can earn from NFT-
1. NFTs on Rent
As we have told above NFTs are digital properties that can’t be duplicated or modified, though you can rent them out easily to make money. Yes, you heard it right! NFT owners can put them on rent as it refers to handing out the NFTs for a specific time in return for money.
It works the same method when a real estate property is put out on lease and the owner gets the rent. It is the most effective way to earn money without giving up on ownership.
2. Invest and HODL the NFTs
There is a new term introduced related to NFTs which is ‘HODL’ refers to ‘Hold on for Dear Life’. It is one of the best ways when it comes to how to make money off NFTs. In this, people can first invest in buying NFTs and then can hold them forever.
The term was interpreted by retail traders at the time of GameStop short squeeze of 2021, and later on, the term is being used to represent the investment strategy where they don’t sell NFTs.
Though, there are both pros and cons of this methodology accepted by investors who have bought cryptocurrencies. If it is used deliberately, it can be a great way to make money with NFTs. For instance, Investors in CryptoPunks were going to sell their punks back in 2017 but those who hold on to it, got the benefits when it got to succeed in 2021.
3. NFTs Flipping
NFTs flipping is also counted among the effective approaches while discussing how to make money with NFTs. It is depicted as the procedure where people buy NFTs at a low price and sell them at the highest prices, and hence, they got a good return. The prime difference between other investment strategies and flipping is that NFT flipping is considered a short-term approach in comparison to others.
Though, it can be a tough job to find such an NFT to flip as there is huge competition in the market. While researching about it, you must mind a lot of aspects such as the token’s utility in the future, community support, visual appeal, and the back-end development team.
4. NFT Royalties
Here the first question arises is it really possible to receive royalties from vague NFT? So, the answer is ‘yes’. NFT owners get the benefits even after selling the NFT to someone else. They receive passive lifelong royalties through them.
In short, if you sell an NFT ownership to another person, you will still be eligible to receive the royalty of that asset. It may seem like a difficult process, but it is worth earning money.
5. NFT Gaming
The technology has been so advanced that now even it is possible to participate in a video game and earn money through it. Blockchain-based games have enabled users to buy and exchange in-game items by using NFTs that work as cryptocurrency.
Some of these items are highly expensive that turn out to be difficult to obtain as well. The game CryptoKitties has some highly valued collectibles in the market. Consider that, a single crypto kitty has reached over $300,000 in some cases.
As a business, you can hire expert NFT developers who will help you to launch a game with more affordable NFTs. Currently, some video games are also providing free collectibles for the first couple of players.
6. NFT Trading
Apart from selling, NFT owners can trade them as well. Some businesses consider NFTs like stocks, just buy and sell them for money. In NFT trading, if you have a broad collection of NFTs, you can sell them in the same way that you would apply if you have made them by yourself. Here, you will just skip the minting process.
The main process you will follow is buying and selling the NFTs. It is not necessary to sell all the NFTs at the same price as they all are different from each other with different values. Some of them are highly valuable while some of them are worthless. The worthiest example of NFT trading to earn money includes “Pablo Rodriguez-Fraile” a Miami-based art collector who tossed a Beeple digital art piece about 1000 times its original cost in just six months. As a collector, you just have to analyze which NFT is worth buying considering its future possibilities.
Are you eager to know when is the best time to sell NFTs as it is a crucial step to get the right price of NFT? Let us tell you that there is not an exact right time to sell an NFT, you just need to consider the market situation and have to analyze the market fully.
7. NFT Staking
The union of NFTs and DeFi (decentralized finance) protocols provides the power of NFT staking. While wondering about how do you make money with NFT, it is one of the effective ways to consider. Staking is referred to combine the digital assets into a DeFi protocol smart contract to produce a yield.
Many platforms are permitting you to use any NFT, while others need you to pay for native NFTs to receive staking token incentives. Below are some platforms that enable users for NFT staking-
- Kira Network
8. Invest in NFT Ventures
Investing in NFT companies is also a great way to think about when it comes to how to make money of NFTs. Undoubtedly, the NFT industry has wide-ranging applications that are used in numerous domains as they have the potential to change the world.
Hence, businesses will be always in the need of hiring an NFT marketplace development company to build proficient NFT platforms displaying exceptional advancements.
Keeping this in mind, it would be great if you invest in the NFT start-ups as they take care of a revolutionary future while providing you a great opportunity to earn. In this way, you don’t even need to be in touch with the volatile marketplace directly.
What is the Future of NFTs?
We can’t predict the future of any technology but by seeing the current market statistics, we can surely say that the trend of NFT is not going to fade out soon. NFT Blockchain platforms are attracting wealthy investors and NFT enthusiasts to capitalize on this industry to make it more prevalent. According to the stats, the NFT market was valued at $41 billion in 2021 and around 250,000 people do NFT trading on OpenSea on monthly basis.
It is the most appropriate time if you are thinking to go into the market. Whatever the idea is, it must have the potential to be valuable to enter the market with minimum risk. It might be possible that we see more industries get involved with the NFT in the future. It seems that the future is holding several opportunities for the NFT industry and involved people.
In the end, we would like to clarify that the NFT landscape is still developing, and you are not late when it comes to investment or earning money through it. You just have to wait for the right opportunity and idea to jump into the sector and get advantages out of it. Above, we have mentioned different ways through which you can make money and can also suggest them to others when they will ask about how do you make money from NFT.
If you want any help regarding NFT development services to step into the industry, SemiDot Infotech is always here to help you out with anything. You don’t need to worry about the cost to develop NFT marketplace as we have a proficient team of NFT & Blockchain experts that has years of experience in providing cost-efficient NFT solutions with rich features.