Non-fungible tokens (NFTs) can be a legitimate source to make money. As of today, you can mint almost anything into an NFT — anything from rare baseball cards, digital art, in-game accessories, to even your physical real state. NFTs are slowly bridging the gap between the physical and digital worlds.
Christie’s, a well-known auction house for famous art and luxury items, jumped into the NFT space at the height of the trend last year. It sold the first virtual NFT artwork for a whopping $69 million in March 2021. The asset was a piece of digital art entitled “Everydays: The First 5000 Days”, which is the work of Mike Winkelmann (aka Beeple).
Before the auction, Beeple was a digital artwork creator who drove “a f*ing Toyota Corolla piece of shit”. After the auction, “Beeple” became a household name in the NFT and art world.
What Makes An NFT Valuable?
Let’s take Beeple and his Twitter profile as an example. You can practically see his whole collection of digital art on the social media platform. So why pay money for his NFT when you can follow his social profile instead? You can’t even hang the artwork on your wall.
Here’s the deal: his art lives forever on the blockchain the moment he minted his masterpieces into NFTs. Blockchain technology makes it possible to authenticate and label an NFT as a unique piece of art. Moreover, it becomes a digital collectible. Anybody can check who owns it over the internet. And it’s worth what money the market is willing to pay.
There isn’t a rule on how the value of an NFT is determined , but in general, its price is justified by the rarity and utility of the NFT.
4 Ways to Make Money In The NFT World
Be an NFT creator and sell your creations on a marketplace
You can create an NFT in a process called “minting”. If you do not have coding knowledge, there are NFT marketplaces like OpenSea and Rarity, which give you the power to create an NFT without the technicalities. It’s as easy as signing up and creating a profile on Facebook.
You can make an NFT out of art, games, music, collectible items, memes, and domain names. You can also create an NFT out of real-world assets like real estate. The first property sold as an NFT was TechCrunch Founder Michael Arington’s apartment in Ukraine.
Play NFT games
Blockchain games are unique in the way that they empower players with the “play-to-earn” model. Put simply, it means you can earn something and by extension make money through playing the games. Some have even made it their full-time career because their playtime can be monetized.
Axie Infinity is one of the most popular NFT games today. The game is often associated with Pokemon because you can train your digital pets, breed them, and put them in battle.
There are other games in which you can make money that require more skills and strategy like Gods Unchained. If you’re into cars, Battle Racers allows you to build powerful cars. If you’re into fantasy football, you might want to check out Sorare.
Build a virtual world in the metaverse
Decentraland is a virtual universe where you can buy parcels of land, build communities, and grow economies to make money. If you’re a fan of Minecraft and Fortnite, the alternative universe offered by Decentraland might interest you.
The only difference between the blockchain-based universe of Decentraland and games like Minecraft is that you can own all assets in the former. These assets can be sold, bought, and traded. You can also create your own assets and sell them on NFT marketplaces to make money.
You can make money here just like how you would in the real world. For example, you can buy land early in the market and sell it for profit in the NFT marketplace. You can offer skills and services, including coding, marketing, and making videos in the metaverse, and get paid.
Stake your NFTs
Staking is the process of storing your NFTs on a platform in return for rewards. It’s a legitimate means to make money if you don’t know what to do with your assets. Since it doesn’t involve selling assets, you maintain ownership.
Not all platforms offer the option of staking NFTs. You can check more details about the asset to know if it can be staked before investing. Most that offer NFT staking are blockchain-based games such as MOBOX.
This HODL strategy is ideal for investors who are speculative. The reward for staking is usually the native token of that platform or protocol. The native token is usually listed and can be exchanged with other tokens.
In conclusion, NFTs can be a legitimate means to make money. Creators are incentivized to make their work into NFTs as it provides additional value in a highly sought-after market. Not all NFTs are created equal and there is no rulebook on how to best study the value of an asset.