Best Strategies for Making Money with NFTs

NFTs are some of the most profitable blockchain assets today. Stories of creators and investors who have made millions of dollars from selling NFTs are popular. One such story is Beeple who sold his piece of art as an NFT for $69.3 million. That’s why most people are jumping into NFTs to avoid being left out by the NFT wave. 

However, if you have not started with NFTs, it’s not too late as the assets are still new in the market. In this article, we will discuss the different strategies for making money with NFTs. 

What are NFTs?

An NFT (Non-Fungible Token) can be thought of as the digital equivalent of artwork obtained from a private collection. Every artwork within the collection is unique and worth a certain amount. An NFT cannot be altered or duplicated. 

NFTs can be bought and sold through cryptocurrency or fiat. The transactions involving NFTs are recorded on the blockchain, just like cryptocurrencies. This makes it easy to tell the real owner of the NFT. An NFT can only be owned by one person at a time. 

Each NFT is connected to the original digital or physical asset. Any object can be sold as an NFT. You can turn your furniture, Facebook posts, real estate, and Instagram photos into NFTs and sell them. 

So, how can you make money with NFTs?

Let’s discuss this. 

How can you Make Money with NFTs?

Source: www.airnfts.com

The following are the top strategies that you can use to make money with NFTs:

  • Flipping NFTs

NFT flipping is now a common way of making money using blockchain assets. NFT flipping involves buying NFTs at a low price and selling them for a profit. However, a proper strategy is needed to flip NFTs successfully. One must select the right NFT projects to flip and determine the right time to buy the NFTs. It is recommended that NFT traders should buy NFTs when their prices are at the bottom and the trend is starting to move upwards. They can then sell the NFTs at a higher price to make a profit. 

  • Minting and Selling NFTs

Minting is the process of creating NFTs. Instead of buying NFTs, one can choose to create NFTs from their assets or artwork and sell them to make money. This is done on NFT marketplaces such as OpenSea and Rarible. The NFT marketplace will require you to upload the digital version of your asset, whether a video, audio, or photograph to be turned into an NFT. 

After a successful minting process, the NFT will be listed on the NFT marketplace, but you will be prompted to set its price. You can set a fixed price for the NFT, or sell it through an auction. 

  • Renting Out NFTs

This is the best way for NFT holders who desire to earn passive income. You can buy or mint NFTs and rent them out to games or any platform that borrows NFT cards. An example of such a platform is reNFT. 

The process of renting NFTs is done using smart contracts. Since you own the NFT, you can set the period for which you need to rent out the NFT as well as the lease rate. 

  • Staking NFTs

NFT staking involves locking the NFT in a DeFi protocol smart contract to generate returns. Thus, you store the NFT as a stake and assign it to a person who can maintain its upkeep, and earn a reward for that. 

Some of the best platforms for staking NFTs include Only1, Kira Network, NFTX, and Splinterleads. 

  • NFT Gaming

NFTs have introduced Play-to-Earn (P2E) games, where players earn income by playing. Most of these games allow you to buy in-game items and trade them with other players. Although there are only a few such games, their number is expected to grow soon. 

  • NFT Royalties

NFT Royalties allow NFT owners to earn a consistent income. The NFT owner earns something whenever the NFT changes ownership from one person to another in the secondary market. Thus, the NFT owner will continue making money from the NFT even after selling it. 

For example, if you set a royalty of 5% on your NFT, 5% of the NFT price will be yours whenever the NFT is resold. 

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