You’ve probably heard of NFTs and how some people have profited from them. NFTs are the most recent cryptocurrency craze to hit the mainstream. If you’re an entrepreneur or a small business that creates digital content, it makes sense to learn how to make money with NFTs.
You’ve probably heard of the 24-year-old artist who made over $300,000 selling her art as NFTs, or Rob Gronkowski selling NFTs of his best Super Bowl moments. With this news spreading on social media, it’s no surprise that NFT rose to prominence quickly, with more people jumping on the bandwagon.
Understanding NFTs is the first step toward making money with them. We’ll give you a quick overview of NFTs and show you how to sell them to make money. Let’s start with an explanation of what NFTs are.
What exactly are NFTs?
Non-fungible tokens (NFTs) are cryptographic tokens that exist on a blockchain. They are used in a virtual capacity for real-world items such as artwork, music art, and even real estate. NFTs, unlike cryptocurrencies, cannot be traded or exchanged because they are not identical.
Consider a baseball card collection or a rare coin collection. NFTs create scarcity among otherwise infinitely available assets. They are commonly used to purchase and sell digital items such as tweets, artwork, gaming skins, and virtual real estate.
NFT sales reached $2.5 billion in the first half of 2021, marking a year of growth for the industry. There are two ways to profit from NFT. The first option is to sell your original content as non-fiction text.
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How Do You Sell NFTs?
NFTs are typically sold on marketplaces, with different processes depending on the platform. Simply put, you’ll upload your content to the marketplace, convert it to NFT, and then wait for it to sell. It’s a lot like Amazon or Etsy. If you already have a digital content portfolio that you own the rights to, here’s what you should do next:
1. Select Your Marketplace, Mint the NFT, and Link Wallet
You have a plethora of marketplaces to choose from. OpenSea, Axie Marketplace, Rarible, SuperRare, and Mintable are a few examples. Take a quick look through these marketplaces and choose the one that best fits your content.
The following step is to “mint” the NFT. To put it simply, minting an NFT is the process of converting a digital file into a crypto collectible or a digital asset on the Ethereum blockchain. Though this may appear to be complicated, most, if not all, marketplaces will provide a step-by-step guide on minting your NFT directly on their platform.
After you’ve decided on a marketplace, you’ll need to connect your funded cryptocurrency wallet. Then, upload your digital file and proceed with the process on your chosen marketplace. Each platform will have its own set of procedures, and you will be able to either sell the item as a one-time purchase or earn royalties.
2. List NFT for Sale
Once you’ve completed the form and your file have been uploaded and minted, it’s time to put it up for sale. After you list it for sale, the marketplace will calculate “gas fees.” This is a fee charged by the Ethereum blockchain network to record transactions. This fee varies according to how busy the network is. Depending on the marketplace, the best way to reduce this fee is to list your product during non-peak hours.
Can I Trade NFTs?
You certainly can. This is the second way to profit from NFT. It is not only for creators to sell NFTs. NFTs, like stocks, are used by some entrepreneurs and investors to profit by buying and selling them. If you have already purchased a collection of NFTs and no longer require them, you can easily sell them in the same way that you would if you had created them yourself. The only thing you won’t do is mint the coins.
The key to trading NFTs is knowing when to sell them. The best time to sell an NFT depends on what it is, why you bought it, and whether or not there is other interest in the item. A quick search on the internet and in the marketplace can assist you in determining this.
You must also account for price appreciation or depreciation. Include additional costs such as gas, marketplace listing fees, and royalties paid to the original owner in your potential profit and loss calculation. These fees will eventually reduce your take-home pay.
For more complex NFT trading that requires in-depth knowledge of the cryptocurrency industry, you may want to consider consulting a professional. Because NFTs are still in their infancy, you can scour freelancer sites for someone to assist you with this.
What is the Future of NFTs?
Any blockchain experiment’s future is unknown. However, experts predict that NFTs are here to stay and will continue to expand beyond the realms of art and gaming, particularly if wealthy investors continue to invest money.
NFT’s growth can also be attributed to features such as proof of ownership, social status, exclusive access, licensing management, and authenticity certification. It allows you to own your products in the same way that Bitcoin allows you to be your own banker.
In Short…
It’s important to remember that, while the process of selling NFTs may appear simple, it may not be as simple as it appears. Minting and selling your content will incur marketplace and Ethereum costs, which can be quite high depending on when you put it up for sale. Given the volatility of this young market, trading NFTs can be risky.
The best way to make money with NFT varies from person to person. If you or your small business has extra cash, you can buy an asset that will appreciate in value over time and sell it when it does. If you’re a content creator, your best bet is to use NFT as an alternative method of monetizing your talent.
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