How to make money with NFTs
Non-fungible tokens (NFTs) are blockchain-based assets that cannot be altered or reproduced. They can be bought and sold using money or cryptocurrency, with each valued according to its scarcity or the interest it receives from consumers. While the blockchain infrastructure behind non-fungible tokens can be difficult to understand, learning how to make money from them is somewhat easier. Almost $13 billion was spent on NFTs in 2021, so with that in mind, let’s discuss some specific money-making methods in the following sections.
NFT tradingSome make money with NFTs by purchasing them at a low price and then selling them for a profit. American art collector Pablo Rodriguez-Fraile purchased a piece of art for $66.666.66 and then sold it four months later in February 2021 for $6.6 million. The piece of art, comprised of a 10-second video clip, was created by renowned artist Beeple – a graphic designer also known as Michael Winkelmann.
Similar to selling shares for a profit, the NFT trader must understand what they are buying and any prevailing market sentiment around the token. They will also need to factor in certain costs such as gas fees, listing fees, and any royalties that need to be paid to the owner.
Digital artAs you may have noticed in the previous section, NFTs based on digital works of art are some of the most valuable ever created. Another of Beeple’s works of art sold for $69 million in the first-ever NFT auction held at Christie’s. The work itself is a collage of Winkelmann’s first 5000 days of work, starting from crude sketches and then evolving into digital shapes and sceneries.
NFTs guarantee ownership and authenticity, which makes it a revolutionary technology for digital art creators.
Video games
NFT games are those that incorporate non-fungible tokens (NFT) as a way to drive growth. In essence, NFT games enable developers to monetize their creations while giving users the ability to earn cryptocurrency just by playing the game, what’s known as the play-to-earn business model.It is also possible to make money from video game NFTs. This is a match made in heaven since many video games were already monetising in-game collectibles before NFTs were developed. Indeed, players of titles such as World of Warcraft and Counter-Strike spend vast amounts of money on virtual items that enhance gameplay.
Like other NFT types, video game NFTs can be sold in a marketplace to other players.
Licensed collectiblesLicensed collectibles encompass a variety of NFTs, including sports trading cards, trinkets, and memorabilia. The most popular collectibles are sports cards, with Deloitte predicting that NFT sports media sales will exceed $2 billion in 2022.
For example, the NBA established an online NFT marketplace in 2020 where basketball fans could trade officially licensed virtual clips of their favorite players. Other sports governing bodies are likely to follow suit, with NFT platform Opensea selling collectibles in Formula 1 racing, NFL, golf, and baseball.
In any case, note that most physical items can be turned into a licensed collectible NFT.
Investing in NFT companiesInvesting in the NFT companies themselves is also a viable way to make money. If nothing else, NFTs have proven that they are not a fad and increased investment has fuelled rapid growth in the industry as a result.
NFT collectibles and games are popular at the present moment, but there exists a diverse range of startups for the interested investor.
Key takeaways:Non-fungible tokens (NFTs) are blockchain-based assets that cannot be altered or reproduced. They can be bought and sold using money or cryptocurrency, with each valued according to its scarcity or level of consumer interest.Traders make money on NFTs by purchasing NFTs and then selling them for a profit. Others use the inherent authenticity and proof of ownership of NFTs to sell their digital artworks.Licensed collectibles are also a way to make money from NFTs, with sports player cards one of the most popular ways to make money in licensed marketplaces. NFT startup companies are also a source of revenue as the industry experiences rapid growth and innovation.Get The 450 Pages Blockchain Business Models Book
Read Also: Gaming Industry, Epic Games Business Model, Free-To-Play, Proof-of-stake, Proof-of-work, Bitcoin, Dogecoin, Ethereum, Solana, Blockchain, BAT, Monero, Ripple, Litecoin, Stellar, Dogecoin, Bitcoin Cash, Filecoin.
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