How to make money on NFTs?
The Miramax film company is suing Quentin Tarantino over the Pulp Fiction NFT auction, the Hermitage accuses the Rammstein frontman of illegally selling NFT with museum images, the creator of the World Wide Web is selling its source code for millions of dollars … Everyone around is discussing NFT, and who learns more about how to make money on NFT.
What is NFT?
What is NFT? This is a blockchain technology that secures the ownership of any digital art object to a person, and then allows you to sell it. Therefore, this is the same as buying an original painting by Salvador Dali – there may be a million copies, but there will be only one original.
It is noteworthy that the first mention of NFT appeared in 2017. Then it was a collection of 10,000 unique digital images of different faces. Each of them was “tied" to a piece of computer code in the Ethereum blockchain platform, creating unique tokens that stored information about the owner of the image.
As a result, anyone could download the picture, but there was only one official owner – the one whose Ethereum wallet is listed in the NFT for this picture.
Benefits of NFTs
Now you can sell a melody, a photo, a picture, a meme, etc. in the form of an NFT. There is no price ceiling: for example, in one of the auctions, an NFT-linked JPG file of artist Mike Winkelmann was sold for $69 million.
Ultimately, the advent of NFT opens up new opportunities for all art creators. First of all, now you don’t have to worry about someone posting your work, printing it or using it in advertising.
As a result, artists, photographers, and musicians strive for the highest number of mentions and even “stealing” of their work. Consequently, with each copy they become more famous, which means that their NFT-works grow in price.
How to make money on NFTs?
There are several ways to make money with NFTs.
NFT Airdrops (NFT giveaways)
Firstly, a holder airdrop is organized for NFT holders: the company gives bonuses to those who already have an NFT of this project. For example, computer game makers give their NFT holders character enhancements, and marketplaces sell these enhancements for amounts up to $900,000.
Secondly, those who do not yet have NFTs use platform airdrops, that is, distributions of blockchain-based trading platforms – they make gifts to new users. Players are constantly appearing on the market, so there may still be a chance to participate in such a distribution.
Thirdly, there are giveaways for everyone from NFT projects that are trying to attract attention: in order to get NFT for free, you need to fulfill a few simple conditions. For example, in 2017, The CryptoPunks gave away 5,000 NFTs. Then they could be obtained by paying only a couple of dollars to write NFTs to the blockchain. Now the cheapest of those NFTs costs $100,000, while the most expensive is $90 million.
Creating your own NFT
Register an ETH wallet and deposit money into it using Coinbase or Binance crypto exchanges. Cryptocurrency will be needed to tokenize your work – for each operation on the Ethereum blockchain, it charges a small commission.
Anyone can sell their art on Rarible or OpenSea. On other marketplaces like NiftyGateway or Foundation, you will have to go through pre-moderation first.
Blockchain based games
Each of them has its own world, economy. Interestingly, players receive different NFT items for achievements in the game, and then sell them on secondary markets.
NFT trading on marketplaces
First of all, these are venture short-term investments: you buy cheaper, you sell more expensive.
This is a way of earning, in which holders pledge their NFTs, ensuring the health of the blockchain. Thus, investors receive rewards.
As a result, the world is gradually transferred to virtual reality. Young people are now hanging out in virtual clubs, and artists are selling virtual drawings of puppies for millions. Moreover, some gamers “played enough” for themselves at home on the sea, and millions of people have a stable income thanks to NFT.
There are different ways to increase income, many of them do not require large investments. The main thing is to study the details at the start and not be afraid to try new things.