How can I make money as a beginner with NFTs?

Everyone’s talking about NFTs and how you can become a millionaire overnight by selling them on OpenSea. Every other day there’s a story about how a twelve-year-old or so became a millionaire by selling pixelated illustrations somewhere on the Internet.

If you’re wondering how you can make money as a beginner with NFTs, you’ve come to the right place!

But seriously, how does one really make money with NFTs if they have no experience?

Well, you’ve come to the right place! Today, we’ll provide you with five strategies to make money as a beginner with NFTs.

Read on to find out how to implement these right now:

What is an NFT?

An NFT is a non-fungible token. The NFT is a digital asset that cannot be replicated, duplicated, or counterfeited, as it exists within the tamper-free ledger of Blockchain. NFTs are usually digital files such as PNGs, JPEGs, MP4s, videos, and even entire video games. They can also come as video game weapons, tools, and utilities within a Metaverse.

What is an NFT marketplace?

An NFT marketplace is an online platform where NFT traders can mint their digital assets as NFTs and sell them to interested buyers. You can also bid for NFT auctions, browse outstanding collections and interact with the NFT community through NFT marketplaces.

Some of the significant NFT marketplaces available are OpenSea, Rarible, Tezos, Foundation, Nifty Gateway, and most Metaverses and play-to-earn games feature their own NFT marketplaces.

The process where an NFT is officially listed for sale on an NFT marketplace is known as minting.

Now that we understand the basics, how do we make money with NFTs?

Create your own NFT and sell it on a marketplace

Creating and selling NFTs is the most direct method of earning money from NFTs. Some NFT traders are creators themselves. This means that they make NFTs to list them on a marketplace. They do so by minting them, setting a sale price, and promoting them on social media and Discord groups to gather interested buyers.

You can create digital files, including images, GIFs, videos, games, and almost anything you can imagine, upload them to a marketplace and convince people to purchase. If you have a creative mind, it’s a bright idea to put it to work by monetizing your creations as NFTs.

If you’re interested in creating NFTs yourself and selling them, we have a guide on apps you can use to create NFTs here.

Set royalties to your NFTs

Whether you create NFTs or trade them, you can set up royalties on many NFT marketplaces to create passive income every time your NFT is resold after its original purchase.

To do this, you need to be the content creator or original seller of the NFT. This only works if you can sell the NFT first and this secondary seller sells it to someone else. Every time the NFT changes hands, you’ll earn a little income.

You can determine the royalties yourself and earn a percentage of the sale price. However, most traders keep the royalties within the 10% to 15% range to ensure subsequent sellers feel motivated to sell them and earn a profit. It won’t be tempting for a reseller to sell an NFT that has a 95% royalty to its original buyer.

Setting royalties for NFTs goes hand in hand with the previous step. However, trading them would be better if you’re not a content creator or aren’t interested in minting your art as NFTs.

Trade NFTs

Trading NFTs goes hand in hand with creating them, as when you make them and sell them, you’re technically trading them. However, an NFT trader doesn’t necessarily have to be an NFT creator. Trading involves purchasing an NFT from a collection and selling them at a higher rate later, like a flipping strategy.

Trading NFTs involves good timing and a lot of research. You need to thoroughly investigate projects that interest you and make sure the project is legit. One of the best ways to do this is by joining the NFT project’s Discord channel or contacting the creators through social media. It’s a smart idea to research different marketplaces to determine the potential of each project.

And being frank, many NFT collections are practically worthless. You have to keep a sharp eye out on every collection and estimate its potential based on other success stories.

Some people might wait for their purchased NFTs to increase pricing with time, possibly holding them for several months or even years until they do.

Most of the NFT traders who got wealthy from trading BAYC NFTs did so by waiting until the very best moment to sell their digital monkey portraits, as did many NFT traders who obtained wealth by holding CryptoPunks.

Think in the long term as these NFT traders did by holding on to NFTs with low floor prices today and waiting until they appreciate. Remember that not every NFT project will obtain fame or popularity equal to BAYC or CryptoPunks, but there’s a profit if it’s already selling higher than its initial floor price.

The good part is that, with time, NFT trading becomes a skill, and it becomes easier to make a profit by buying the proper collection at the right time and selling it, rinse and repeat.

Play-to-earn NFT games

Play-to-earn is a blockchain gaming business model where players play a game and earn cryptocurrency, metaverse tokens, or even NFTs that they can sell.

For example, in Gods Unchained, players can possibly earn trading cards that can easily fetch high crypto prices and make a profit from their gaming.

Play-to-earn games have the advantage of being decentralized and providing players with the possibility of transferring these assets to the real world at any time. Assets are distributed among players, and obtaining some tokens can give some players voting rights within the game.

Some of these games have a startup cost. For example, Axie Infinity requires you to purchase three Axies before you can officially play. You might need to spend several hours a day before seeing any significant revenue. The startup cost can vary depending on the Axies you purchase, possibly near $350.

Many players have made a living out of play-to-earn games.

If you want to learn more about what NFT games to earn and invest in 2022, check out our guide here.

Renting out NFTs

If you own an NFT with a utility, you can rent the utility to someone else. It might be that this person needs the NFT for personal reasons, which we’ll describe below.

NFT rental isn’t as popular as NFT trading or royalties, but it’s still a method that you can combine with either of these to increase your NFT passive income.

The most common examples are virtual lands NFTs, available for sale in most Metaverses.

Why would someone rent an NFT?

Some people might rent out NFTs for similar reasons that others rent luxury cars for flexing. Usually, this might happen to someone who wants to rent an NFT to use it as a profile picture, especially considering how accurate Twitter NFT verification is.

Others might decide to rent an NFT for a digital art exhibition, making it easier for the owners of the digital artwork to showcase their art without letting it go permanently.

If you play an NFT game, there might be a specific mechanic in the game that provides you with bonuses depending on which NFTs you own. In many games, having a unique item or weapon, even if it’s rented, will provide you with utilities; otherwise, you wouldn’t have access to it unless you farmed for the item.

And finally, some NFT games have a pricey entry barrier, and those who might not have the means to purchase it might choose to rent NFTs from a third party to play the game.

Final words

As you can imagine, none of these strategies are mutually exclusive. The smartest NFT millionaires try several different methods and see which one fits best. Most NFT play-to-earn gamers aren’t traders themselves, focusing instead on mastering their game instead of bidding on upcoming NFT projects, though that doesn’t mean you can’t try all of them simultaneously.

Even if you’re a total beginner in the NFT space, there’s always a possibility to earn money from creating NFTs, trading them, or playing play-to-earn games. With every passing day, there’s a new NFT marketplace opening up, hundreds of new NFT collections being released, and a new play-to-earn game to try.

Some people might feel pressured to get into NFTs as fast as possible to reap benefits and get rich overnight. Many NFT millionaires have obtained their wealth by being strategic and educating themselves on NFTs before making rushed decisions.

You can do the same by reading more about “What are NFTs” in our blog. Check out our other articles on how NFTs work.