Best ways how to make money with NFTs — Complete Guide
If you have ever asked yourself the question “How can I make money with NFT?”, then it’s time to figure it out once and for all. This article describes the methods of making money on NFT, which will be relevant for quite a long time. Each of them is unique in its own way and quite profitable…
Why Are NFTs Worth money?
Almost everyone who is familiar with the world of investments knows that non-fungible tokens can bring net NFT profit to their creators or buyers. But what shapes the value of NFTs? Why do some NFTs shoot up, while others fall at the lowest price? And finally, why do some investors buy them for a cosmic value?
What factors determine the cost of NFT
The formation of NFT value is directly influenced by demand, as for every other product from any sphere. However, it is important to understand what exactly determines the interest of the audience and how stable it is.
The first thing that underlies the demand for an NFT project is a rarity. It is easy to draw an analogy with the physical universe, where people are willing to pay cosmic amounts at auctions for rare things.
In addition, the origin of the NFT creator plays an important role. If this person is already famous and has his own community, then the popularity of his NFT project is already predetermined. Only time will tell how stable it is, but the probability that buyers of such a project can make money from NFT is very high.
TOP 10 ways to make money with NFT
Every year the sphere of NFT attracts more and more attention, which is why the popularity of this phenomenon and its implementation in everyday life is being formed. To avoid losing time and money, we offer you to get acquainted with the 10 most effective methods of making money from NFT.
Invest in NFT Presales or Public sales
Thanks to its unique qualities or rarity, the value of NFT can increase. Projects that are already popular and rare today are very expensive. Therefore, you need to look for projects that have potential in the future. Usually, they have a low floor price and can grow significantly in value over time.
A good example is Cryptopunks, which in 2017 cost $ 1, and in 2021, with the growing popularity of NFT, their price increased to $ 99k.
NFT flipping means buying at a lower price to sell at a higher one. In this method, you should also choose projects that have ambitions for a successful future. In order to determine this, you can analyze the author and the size of the community. How to determine the value of the project to start making money from NFT read here.
We advise you to pay special attention to the circulation of tokens, as this determines their rarity.
Minting your own NFTs
In order to be sure of the product, you can make money with NFT that you have created yourself. This format belongs to the category of digital assets on the blockchain. It can be a photo, video, picture, or even a piece of music. Minting your own project is not a very difficult process, but it requires complete uniqueness and originality only then it can bring you profit.
After minting, you can monetize your project with the help of various marketplaces that help beginners.
Play to Earn (P2E) NFT Games
The field of video games has gained a new meaning in society since the advent of blockchain. Now you can play your favorite games, win non-fungible tokens and make money on NFT. Usually, in P2E games, players can win in-game tokens, which can later be exchanged in any decentralized exchange (DEX). Thus, by regularly playing to earn games, you can earn regular NFT profit.
In addition to the direct sale of NFT, you can provide it for rent. So, how to make money with NFT rent? NFT rent is based on the same principle as renting any object in real life. So, if you own any token, you can lend it to another entity to make a profit. At the same time, from the transfer of the asset to the lease, your ownership is assigned to you.
Similar to obtaining the ownership of any asset in real life, you can receive passive income in the field of NFT. What is the difference between rent and royalty, and how can you get NFT profit?
The main difference is that by selling your NFT, that is, transferring ownership to another person, you will still receive passive income. While renting implies temporary use and temporary profit.
Besides you know how to buy and sell NFT for profit, you can trade them. Trading NFTs is similar to trading different securities. If you own NFT but do not need it now, you can easily analyze the market and sell it at the best price to make money on NFT.
In order to make a profitable transaction, you should objectively evaluate your NFT. Although each token is non-fungible, one may be worth a million dollars and the other 0.01 cents. If the NFT you want to trade corresponds to the indicators that determine its value, then trading will bring you a good profit.
Staking NFTs is another way to make money from NFT by combining NFT protocols and DeFi. The essence of staking is that for staking your own/purchased NFTs you get internal tokens, which you can later sell or exchange. You receive tokens directly for providing liquidity to NFTs by staking them. Subsequently, with regular staking, you consolidate your own position in a special liquidity pool.
Staking is considered to be a stable way to earn money, as you are guaranteed to receive internal tokens when performing these operations.
Adopt NFT-powered yield farming
One of the equally sought-after ways of making money from NFT is yield farming. This method gained popularity in 2020. Its essence is that you block a share of assets in a trading or credit pool and thereby supply their liquidity. This method is also called “liquidity mining”.
In the example of the Pancake Swap exchange, you need to deposit 2 BEP-20 assets and receive LP tokens, which will subsequently be placed on the farm for profit.
Yield farming is considered one of the easiest ways to make money on NFT.
This way of earning money is that when you have NFT in your property, you do not conduct any operations with it, but only store it and wait for the right opportunity. The abbreviation HODL stands for “Hold On for Dear Life”. You will immediately have a question “How can I make money with NFT if I use this method?” In fact, there are no guarantees that sooner or later your NFT project will work, but the world is changing every day, so it’s worth a try.
The most striking example of HODL is Cryptopunks, which were created in 2017, but gained real recognition and value only in 2021. All because their creators simply stored them and waited for a good opportunity to sell them.
Today — anyone can enter the world of blockchain and start making money by selling NFT. The above 10 ways of earning money are a base that will be relevant for a long time. To find the most comfortable way for you, we recommend that you try each one to form an objective view of these processes, based on your own experience.
OctoGamex is a decentralized multi-chain NFT Trading Platform built for In-Game and Metaverse Assets, connecting gamers, games, and guilds around the world. We’re building a single access point to the GameFi NFT ecosystem, enabling among others such products as: Multichain Marketplace, CrossChain NFT Bridge, Marketplace Widget, Analytics for MMs, NFT rental and lending services, and would love to share more with you.