The relatively new NFT industry is pushing the boundaries of what we thought was possible with digital assets and is bringing a new level of value and scarcity to the digital realm. As with any new industry, it’s opening up a whole world of possibilities and opportunities for artists, creators, gamers, collectors, and investors alike to make money. So let’s explore some of the main ways.
Creating and Selling your own NFTs
One way to make money from NFTs is by creating and selling your own. Many artists and creators have found success in this market already. The NFT/s you create could take any number of forms, or represent a wide range of assets including;
- Digital artworks: This includes any form of digital art, such as digital paintings, animations, GIFs, and videos.
- Collectables: This includes digital items such as virtual trading cards, digital pets, and virtual real estate.
- Gaming items: This includes in-game items such as weapons, armour, and other virtual items from video games.
- Virtual worlds: This includes digital representations of real-world assets such as virtual property and virtual land in virtual worlds and virtual reality.
- Music: This includes NFTs that represent ownership of music tracks or entire albums.
- Videos and films: This includes ownership rights of films, shows or videos in digital form
- Photos: This includes ownership rights of photographs and visual art in digital form.
This is by no means an exhaustive list, as the possibilities for NFTs are ever-expanding, and new use cases are constantly emerging.
In most of these cases, to easiest way to create these NFTs is by using Fair.xyz – Check out the blog below on how easy it is, with no experience required.
Along with earning money by creating and selling their own NFTs, NFT creators can also earn royalties when its sold.
For example, when an NFT is sold, the artist will typically receive a percentage of the sale as a royalty. For example, if an NFT artwork is sold for $1,000 and the artist’s royalty rate is 10%, the artist will receive $100 as a royalty payment.
Furthermore, with NFTs, the artist has the potential to earn royalties from each subsequent sale of their NFT. So, if someone buys an NFT from the artist and then resells it later for a higher price, the artist will still receive a percentage of the second sale. This can potentially provide a new revenue stream for artists and help them retain more control over the value and distribution of their work.
Another way to make money from NFTs is by buying and selling existing NFTs on the secondary market. Just like traditional collectables, NFTs can increase in value over time, and there are a number of platforms/marketplaces that allow for the buying and selling of NFTs.
There are a number of different types of NFTs that can be traded, including digital artworks, collectables, in-game items, and virtual real estate. But what makes a good Trader from a bad one? Well, there are a few guiding principles that will help…
- Knowledge of the market: Understanding the NFT market and its dynamics is crucial in order to make informed trades. A good trader should stay up-to-date with the latest trends and news in the NFT space.
- Understanding of blockchain technology: A good trader should have a good understanding of blockchain technology, which is the foundation of NFTs. This includes understanding how NFTs work, how they are stored and transferred, and how to manage them securely.
- Network and connections: Building connections in the NFT space can be beneficial for finding information (the slang is ‘Alpha’) about new projects and good deals. A good trader should be able to build a strong network of connections, including fellow traders, artists, developers, and collectors.
- Research skills: A good trader should be able to conduct thorough research on potential purchases, including understanding the underlying value of the NFT, the potential of the project, the team behind the project, etc.
- Patience and discipline: NFT markets can be highly volatile, so a good trader should be patient and disciplined. This means not making impulsive or emotional decisions, and sticking to a long-term strategy.
- Risk management: A good trader should be able to manage the risk associated with trading NFTs, which can be highly speculative. This means diversifying investments, setting stop-losses, and having a clear understanding of the potential risks and rewards associated with each trade.
It’s worth noting that these ways to earn money from NFTs are highly speculative and risky, the value of NFTs can be highly volatile and depend on various factors such as platform, the issuing company, the market demand and the underlying technology. It’s important to do your own research and due diligence before getting involved in the NFT space.
“Play-to-earn” in the context of NFTs, refers to the ability to earn money by participating in a game that involves owning, buying, or selling NFTs.
For example, a game developer could create a game that allows players to earn in-game items such as weapons or armour, which can then be sold as NFTs on a marketplace. Similarly, a game could allow players to buy virtual land and buildings, which can also be sold as NFTs on a marketplace. Some of the most popular play-to-earn games to date are:
- Axie Infinity: This game allows players to breed, raise, and battle fantasy creatures called Axies. Players can earn cryptocurrency by participating in the game and also can trade their in-game assets like Axies, land and other items as NFTs.
- The Sandbox: This is a virtual world that is built on the Ethereum blockchain. It allows players to buy and build on virtual land, create games and experiences, and then monetise them to other players.
- Sorare: This is a blockchain-based fantasy soccer game, which allows players to buy, collect, and trade digital collectables of soccer players like Lionel Messi, Cristiano Ronaldo and others.
Lastly, developers can also make money by creating NFT marketplaces and other blockchain-based applications. As the demand for NFTs continues to grow, there is a need for platforms and applications that make it easy for people to buy, sell, and trade NFTs. Developers can create these platforms and earn money through transaction fees or other monetization models.
Overall, there are a variety of ways to make money from NFTs, whether it’s by creating your own digital art and collectables, buying and selling existing NFTs on the secondary market, participating in NFT-based games and platforms, or even developing marketplaces and blockchain-based applications. As with any new and emerging market, it’s important to do your own research and understand the risks before getting involved.
Providing services for the NFT ecosystem
The NFT ecosystem is still relatively new and continuously evolving, so new opportunities and services will likely emerge as the space continues to grow. Just like with the invention of the car, or the internet, there are huge chances to build a business, application, service or tool that will help others, which you’ll be able to monitise. Some of the examples we starting to see are;
- Building NFT marketplaces
- Providing NFT creation tools, such as https://fair.xyz/
- Providing NFT advisory services
- Royalties from NFTs: Some NFTs, such as NFTs for music or digital artworks, can also generate royalties for the creator each time the NFT is resold on a marketplace.
- NFT farming: This is a new way of earning money by staking or holding NFTs for a certain period of time and earning rewards for it.
- Staking NFTs: Some platforms offer staking rewards on the NFTs that are held, this can be a way to earn passive income.
Certain platforms or projects allow users to “stake” their NFTs by holding onto them for a specified period of time, typically a few weeks or months. In return for staking their NFTs, users can earn rewards such as a share of platform fees, discounts on platform services, or other incentives. These rewards are typically paid out in the form of cryptocurrency and can be converted to cash or used to purchase more NFTs.
The platform Binance for example is built on the Binance Smart Chain, which offers a staking rewards system called Binance NFT, where users can stake their NFTs and earn Binance Coin (BNB) rewards.
As with any investment, it’s important to do your own research. It’s important to remember that the value of NFTs can be highly volatile and depend on various factors, and it’s not guaranteed that you’ll earn a profit from staking NFTs. Stake with caution.
For all your NFT creation needs, be sure to visit Fair.xyz – We’re is empowering the next generation of creators, businesses and brands to create and launch NFTs, with no code or experience required.
Our goal is to create an industry-leading NFT launch experience for both collectors and creators that is secure, accessible and fair. Our proprietary technology removes gas wars, failed transactions and bots. From creators to businesses, we also work with the globe’s largest institutions, brands and movements in order to bring ground-breaking and bespoke Web3 utility to life.