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Can I Make Money Off NFTs?

on April 01 at 04:09 PM

A guide to how you can make money off the new NFT hype

2021 has definitely been the year of the NFT. One year ago, barely anybody had even heard of the concept. But now, these digital tokens are making their way into headlines all over the world. Piggy-backing on the huge cryptocurrency boom, NFTs also operate on the same blockchain technology as crypto.

 

If you don’t know already, NFTs are non fungible tokens that prove the ownership and authenticity of a digital asset such as art or music. The crypto boom is proving people have faith in digital currencies, and now the NFT hype is also showing that many people are prepared to invest and own some digital assets.

 

You may have already heard of people making money off this concept, but how is it done? How can you make money? In this article, we will cover the 3 best ways to earn money with NFTs.

 

NFT Digital Art
 

While many pieces of NFT art have sold for millions already, it is difficult to say whether it’s good from an investment perspective, and buying with the intention to resell it for a profit may be a bad idea.

 

The problem lies with the simple fact that art - and especially digital art - technically doesn’t have value. Art is only worth what someone is willing to pay for it and so it is difficult to judge whether its “value” will rise or fall.

 

However, with the rise of metaverse games such as The Sandbox and Decentraland offering users the chance to showcase their pieces of digital art in their home or gallery - and even charge people for entry - it could be possible to make some return on your investment. Buying some cheaper art to create a whole gallery would bring profit in the long run.

 

NFT Digital Collectables
 

When it comes to collectables, however, we see a totally different story. Special edition collectables could be released to mark certain events, and true collectors will likely pay a ton of money to get one in their collection. A zombie CryptoPunk collectable recently sold for over $5 million.

 

Even just general rare collectables can be worth a good few bucks to many people, and if you happen to stumble on, say, a rare Topps Baseball card, it could easily sell for a few hundred dollars. These rare NFTs appear randomly in packs, so luck needs to be on your side.

 

NFT Play-to-Earn Games
 

If you want to make money off an NFT, games are probably the best option. The new concept of Play-to-Earn gaming is taking the world by storm and already people are earning over $1000 a week by playing games.

 

There are loads of Play-to-Earn games out there, but to truly get the most amount of profit it is best to find one that is brand new and still fairly cheap as, once a game gets massively popular, you’ll find everything is a bit more expensive.

 

As I mentioned above, metaverse games are also great at making regular cash. Either from setting up a business in the metaverse or simply buying and selling property, there is loads of potential in these new virtual worlds.

 

One Last Note

 
Remember, the best reason to buy an NFT is for yourself. Buy a digital asset for you to enjoy. The market is very volatile and investment is always risky, but if you buy something you like, you’ll never feel like you lost out.

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