Before now, the internet was a copy machine, everyone worried about how they could secure their respective assets from being plagiarized but all failed.
NFT was introduced to help combat counterfeiting, giving the original creators exclusive rights to their respective creations.
An NFT, like a piece of art, can be sold for cryptocurrency or fiat. However, just like bitcoin, the token’s asset transfer is recorded in the blockchain. This establishes the ownership of a specific NFT.
Non-fungible tokens (NFTs) operate in a fast-growing marketplace. According to industry estimates, more than $25 billion worth of NFT sales were generated in 2021 – up from $95 million in the previous year.
Individuals and celebrities are also into these non-fungible tokens to earn passive income.
Anyone can build passive income with NFT, you just need the right information and implementation to get started.
In 2021 the NFT market surpassed the $12 billion mark, up from $162.4 million at the start of the year. It has been an impressive market in 2022 despite the market town.
What are NFTs?
These NFTs can be sold and traded in marketplaces such as Opensea, Rarible, etc. NFTs can be anything digital (such as photos, videos, audio, drawings, code, tweets, and other types of digital files as unique items).
Why should I invest in NFTs?
NFTs typically represent the ownership of digital assets such as images, videos and music files. They are bits of information, called tokens, that let people know you have the right to a specific file, making them unable to be counterfeited.
In some cases, NFTs can also represent ownership of an asset available in the “real world.” For example, you might have a digital token that proves your ownership of a fine bottle of wine or a painting. So, should you invest in NFTs? Following are some of the potential advantages of doing so.
1. NFT allows you to make money.
If you buy an NFT at the start of a project, you could benefit if it gains in popularity (and value).
You might be able to sell it for more than you paid to get it.
Some popular projects, like CryptoPunks, CryptoKitties, and Bored Apes end up bringing in large amounts of money.
2. Anyone can invest in NFTs.
The simplistic nature of NFTs allows them an easy asset for anyone who wants to invest in something worthwhile.
It’s possible for anyone to easily mint NFTs using a marketplace like Rarible or OpenSea. As a result, you can find NFTs for sale, as well as invest by minting your own NFTs and selling them. If you have the crypto to pay for an NFT, you can buy it.
While NFTs can be pricey, they are still more widely accessible than some other assets, especially certain collectables.
3. NFT makes Ownership transparent and trackable.
One of the reasons NFT was created is to combat counterfeiting in the digital world. Because NFTs exist on the blockchain, it’s possible to track their ownership and verify provenance. Even if someone copies the image in an NFT, you can prove your ownership of the asset.
4. NFT helps diversify your portfolio.
If you’re looking for a way to add asset diversity to your portfolio, NFTs can be an interesting choice. They offer you the chance to add an alternative asset to your portfolio and take advantage of any growth that might occur.
5. NFT allows you to learn more about crypto assets and blockchain technology.
For those who want to learn more about crypto assets, NFTs can be a good way to start. Before investing, take time to find out how blockchain technology works and understand how NFTs function as part of the landscape.
How do I Make Money Online With NFTs?
NFTs can be sold and bought on specific marketplaces. Just like they were e-commerces, any investor can browse the marketplace, find digital content and buy it.
That depends on the marketplace that you are using. For example, if the marketplace is based on the Ethereum blockchain, you’ll pay with the Ether coin.
You must have heard that some NFT collections were sold for millions of dollars. Several opportunities come with NFT that could build you passive income for life. Discussed below are the easiest ways to make money online via non-fungible tokens (NFTs).
1. Create and Sell NFTs
Anyone can create and sell NFTs in their own respective leisure time. The direct and effective method of making money with NFTs is to create and sell them.
Yes, you can create and sell anything digital such as art, images, videos, memes, properties, etc., as NFTs. If you have a notch to creativity, you can monetize all your creations by selling them as NFT.
To sell your NFT to the world, You need to list your NFTs on other marketplaces such as OpenSea, Rarible, etc., for a small fee and increase your income.
2. Trade NFTs
Trading NFTs is another method used when making money with NFTs. Trading NFTs is a smart and easy way of making money easily and efficiently. You can purchase an NFT collection and make a profit by selling them at higher rates.
However, trading NFTs is not an easy task. The trick lies in selling them at the right time, which directly depends on various factors like what the NFT is, why you bought it, and if there’s any other interest in the item.
Before you go ahead trading the NFTs, you need to keep in mind that not all NFTs are created equal.
Some are worth millions, while some are worthless. So as a trader, you need to keep a close eye on every prospect for making good money in future resale.
3. Rent Out NFTs.
Renting out NFTs can be a good source of passive income for NFT creators and collectors. The interesting thing is that you can use the NFTs for the long term, without having to create new ones.
You can rent out your NFTs in games, or any other platform, that allows users to borrow NFT cards. You can even use platforms like reNFT to rent or lend NFTs to others.
No need to worry, all the NFTs that you rent are governed by smart contracts, however, the NFT owner has the privilege to set their preferred duration of the rental agreement and the lease rate for the NFT.
4. Play NFT games.
Gaming is another avenue to make money online with NFTs The NFT based video games are also one of the known methods of making money through NFTs.
Some games allow you to purchase in-game items as NFTs and trade them, helping you earn money from them. Still, their number is limited for now.
With the hype of NFTs, there is certainly no doubt that you will be seeing more and more games shortly that will be allowing NFT trading.
Another reason why in-game NFTs will grow in the future is that they are far more advanced, compared to simple digital trading cards, or even more interactive NFTs like virtual works of art.
5. Earn NFT Royalties.
By NFT royalties, you can earn money whenever your NFT changes hands on the secondary market, meaning you will continuously get income even after selling your creations to collectors.
Setting up a royalty on your NFTs is a great way to ensure a consistent flow of income. For an instance, if you set a 10% royalty on your NFTs, you will receive 10% of the total sale price each time your digital asset is resold to a new owner.
What else, since the whole process is automated, you do not need to enforce your royalty terms or track payment manually. So set the royalty and earn every time someone purchases your NFT.
6. Staking your NFTs.
Staking is the process of storing digital works in the form of a “Stake”, and assigning them to those willing to maintain their upkeep while providing you with a share of the reward for your NFT.
Staking NFTs means depositing, or “locking away,” digital assets into a De-Fi protocol smart contract to generate a yield. Do you have an NFT that you found not to be useful? Then I recommend you staking it for profit.
7. Blog about NFTs.
NFT is an emerging topic in the crypto world with tons of searches each month. Creating a blog around this topic is not a bad idea either, as there are people who need updated information on how to go about the industry. Your blog could be monetized by Google Adsense, affiliate marketing and many more.
I wrote a comprehensive guide on how to start a successful blog. Check out the link to the article below to learn more.
8. Start a YouTube channel.
It’s the most popular social platform among U.S. adults, and nearly 75% of Americans use the social video site, compared to 69% who use Facebook.
I wrote a comprehensive article on how to start a successful YouTube channel. Check out the link to the article to learn more.