NFTs are digital assets that are making waves on the internet. If you’re not currently involved in cryptocurrency, it is likely that you haven’t been following the trends.
NFTs and cryptocurrencies are closely related. Before you find out how people make money using NFTs, let’s first define the differences between NFTs.
NFTs stand for non-fungible tokens. These digital assets can be anything from paintings to eBooks and songs to videos and photographs.
Each NFT is unique and has its own code, making the tokens unique.
A digital digital asset is cryptocurrency. It’s a digital currency or money that isn’t regulated by the government. You can use it to buy and sell in online marketplaces.
The main difference between cryptocurrency and NFTs
NFTs and cryptocurrency are both built using the same technology. However, their main difference is fungibility. Crypocurrecies are fungible just like regular money. They can be traded for each other as long as they are valued according to their respective worth.
Non-fungible NFTs cannot be traded. They cannot be traded like cryprocurrecies. Each one is unique and has its own digital identity. There are no two NFTs the same.
These are some of the many ways you can make money using NFTs.
NFTs are popular because of their trend. However, there are huge opportunities to make a lot of money if you really take it seriously. These are proven methods to make income with NFTs.
NFT games (play-2 earn)
This is a great way to make money if you’re already a good gamer. If you don’t like games, you can still make money and have fun.
You could win tokens for your skill in role-playing games. You can also rob banks and steal a lot of money. The NFT equivalent will be yours in real life.
Many people are making big in popular games that have this feature. NFT games are here to stay so you can join them.
Sell high, buy low
This method of making money through NFTs is often called flipping, as it is often a short-term deal. An NFT can be bought at a very low price and then held for a while until its value increases.
You could make anywhere from 10% to 100% depending on the value of your NFT. You could actually make more than 100% profit flipping an NFT.
It all depends on the NFT’s utility, general appeal, popularity and a few other factors within the NFT market.
Invest in NFT-related businesses
More companies are including crypto and NFT into their businesses, as it has seen a boom in value and profit.
This profit can be used to invest in these companies, and you will get a good return on your investment. This is a safe way to generate passive income.
You can HODL your NFTs
You will assume that “hodling”, which is a wrong spelling of “holding,” is crypto trading if you don’t know much about it. Crypto traders will tell you that they keep a token until it reaches an extremely high value.
Flipping in NFTs is similar to hodling but it is not a long-term strategy. You can make money hodling by buying your favorite NFT and not selling it.
This is the best way to go because it can make your NFT millions more than its original value. It is no wonder that this is the most common way to make money with tokens.
Be patient before you HODL. Too many things could make you want sell at the wrong moment. This method can take many years before you see the rewards, but it is worth the wait.
Investing in NFTs that are newly created
While most NFTs don’t have much value when they are first created, over time their prices will rise and many people will be eager to purchase them.
You can invest smartly by identifying new NFTs that are likely to grow and buying them at a minimal cost compared to their price in a few months.
In 2017, cryptoPunks NFT went up from 34 dollars to around 24 million dollars. If you invest in the next cryptoPunks, you can smile at your bank account and make money using NFTs.
Make your own NFT
This method allows you to make your own NFT, and then put it up for purchase. Instead of purchasing an NFT to make your money, you’ll be creating an NFT that people can buy to make their money.
You can make a NFT no matter what your skill level is.
Start by digitizing your creation. You can digitize any type of creation, including a painting, song, ebook, video or even a meal recipe. Once your asset has been digitized, it can be put on the blockchain to trade through any NFT marketplaces.
This is the best option for creative people. You have everything you need to create the next NFT worth millions.