NFTs, which stand for “non fungible tokens” are a file type, the same way we have “jpeg” files or “pdf” files and are unique digital assets that reside on the blockchain so that ownership of that digital file can be tracked.
But why are so many people are spending thousands of dollars, and sometimes even millions of dollars to purchase an NFT?
Well, many people believe, including billionaire entrepreneur Mark Cuban and millionaire investor Kevin O’Leary that non fungible tokens are not only here to stay, but represent a fantastic investment opportunity. Other online influencers and business owners such as Gary Vaynerchuck also believe in the future of NFTs and how profitable they can be as investments.
In fact there are many ways you can make money from NFTs.
The first strategy is to simply create and sell your own NFT. In order to do so, you will need three tools. First, you will need to purchase Ethereum through a Cryptocurrency exchange such as Binance. You will also need to install the “Metamask” Chrome extension that will act as a wallet to store your Ethereum and pay for gas fees, and you will need to go on an NFT marketplace such as the Opensea NFT marketplace to list your NFT for sale.
You can create different types of NFTs, including:
- Art (digital or physical)
- Collectible items
- Media
- Music
- Video game items
- Memes
- Sport moments
Once you have created your NFT and the file is on your computer, simply go to the Opensea NFT marketplace or any other marketplace you wish to list your item on, click on ‘create’ and follow the prompts. You will also need to decide whether you want to sell your NFT through an auction or sell it at a fixed price. Plus, you’ll need to decide whether you want to earn royalties if the people who purchase your NFT, resell it.
Many people have made a good income from creating and selling their NFTs, including Jaiden Stipp, a 15-year-old boy who made $30,000 from a single NFT he created and Benjamin Ahmed, a 12-year-old boy who made £290,000, from his “Weird Whales” Benyamin Ahmed NFT collection.
Authors have also turned their books into NFTs, such as the author of the book “The Lost Direction”. Coaches have also leveraged the power of blockchain NFTs such as Sunny Sekhon, a relationship coach who created an NFT called “Flawless Godess” which includes twelve coaching sessions.
The second way to make money from NFTs, is by buying them at a discount and re-selling them at a higher price. In order to do so, you will need to identify blockchain NFTs sold at “floor price” (at the lowest price) or at a discount and that have the potential of increasing in value in the future.
This can be quite a risky strategy, because there is no guarantee that your NFT will increase in value, or sell. You could end up with an NFT that either never increases in value or that no one wants to buy.
If buying an NFT at the floor price or at a discount is the strategy you wish to pursue, you will need to start looking for NFT projects about to be launched.
There are many ways you can be notified about new NFT projects. The first way, is by setting Google Alerts.
Google alerts is a tool that allows you to receive email notifications when information related to a certain topic has been published on the web. This tool also allows you to decide on the frequency of these email notifications. What is great about Google Alerts is that you get notified as soon as the information is published online, so the notification about new blockchain NFTs is not out of date.
To set up Google Alerts simply go to google.com/alerts, type in keywords you wish to receive alerts for, then select the email address you want the alerts to be sent to. For example, you could ask to be notified as soon as articles that include the keyword “new NFT project” or “NFTs about to launch” are published online.
Another way to discover new NFT projects about to launch is by following NFT industry leaders on Twitter. Sometimes, the people who discuss new NFT projects might be biased about their opinion, because they have been paid or incentivized in some way to endorse a new NFT project, so make sure you do further research about any NFTs they endorse. You could of course also subscribe to NFT newsletters, which notify their email subscribers when new NFT projects are about to be launched.
The third way to make money from NFTs is by renting them. You can purchase non fungible tokens and then rent them to other people. For example, there are many video game props from play to earn blockchain games, also known as ‘p2e games’ that have been turned into NFTs, that allow owners of the NFTs to rent them out to players, who don’t wish to purchase the NFT of the p2e games. There are other play to earn blockchain games (p2e games), such as NFT World that allows people to purchase virtual land as an NFT and then rent them out to users of their game. Another play to earn blockchain game that allows renting is the health and fitness tracking app STEPN that tracks your walking, jogging or running distances when you purchase their shoes as NFTs.
For people who wish to use the app without having to purchase shoes through the play to earn blockchain app, they can rent them from the people who own them.
Another example of monetizing NFTs through renting is Vulcan Forged. Vulcan Forged is an NFT blockchain game that allows people to purchase NFTs and rent them out for a minimum of 24 hours. Plus, the owner of the NFT decides on the rental fee. The lower their rental price is, the more likely they are of course to attract people wanting to rent out their NFT.
So there you have it, 3 different ways to make money from NFTs.