By now, you’ve probably heard of Non-Fungible Tokens (NFTs) or CryptoKitties, the Ethereum-based blockchain game that’s made headlines for its high volume of transactions, as well as its $12 million worth of digital cats sold to date. But how exactly do you earn money from NFTs? And are they the right investment vehicle for you? Here’s what you need to know to decide whether they’re right for your financial goals and risk tolerance.
Earn money by issuing NFT
There are four main ways that you can earn money by issuing NFT: mining, crowdfunding, in-game purchases and direct sale. In terms of mining and crowdfunding we have already discussed at length. If you have an interest in creating your own game or developing a virtual world, then in-game purchases may be for you.
Alternatively, if all else fails, simply sell directly to other users using any number of marketplaces such as OpenSea and Rarebits. When it comes to earning money from non fungible tokens (NFTs), there are plenty of options available! It is often best to think outside of boxes and explore alternative opportunities.
Before actually earning money though, make sure that you’ve done sufficient due diligence on whether each option is suitable for your needs.
This is also true when considering partnering with others as well; before officially entering into any partnership, it’s wise to reach out to them first so they know why they should work with you too!
The more effort that goes into raising awareness about your token among potential partners, consumers, miners and crowdfunders; ensures that everyone has a better understanding of what makes your project unique compared to others.
Earn money by trading NFT
Start by buying low and selling high. The easiest way to do that is to use marketplaces such as OpenSea, RareBits, or WAX. If you already have an account with one of these marketplaces, then feel free to jump straight in and start buying and selling crypto assets. If not, it’s best to open an account first because you will need one before you can do any trading (other than ETH on EtherDelta).
You’ll need your NFT wallet address for all non-EtherDelta transactions—so be sure to set up your wallet first and make sure your keys are secure! This tutorial will show you how to get started on OpenSea if you don’t already have an account. All of these markets are easy to understand once you try them out, but they all work a little differently so read instructions carefully.
In order to buy anything from most of them, though, you’ll need funds deposited into your exchange account’s balance. When using most of these marketplaces for the first time, we recommend depositing at least $10 worth of BTC/ETH/etc., which will usually cover your transaction fees and leave some play money in case anything goes wrong.
If nothing does go wrong and everything works smoothly from there out (which happens more often than not), you should end up with a little extra ETH in your exchange wallet once you withdraw it later down the road.
Earn more by using other digital services
All of your crypto transactions are also tracked by other systems. For example, if you use a crypto wallet to buy a sandwich with bitcoin, that purchase will be stored on your credit card statement and there’s a chance it’ll also show up in your bank records (as will all other purchases and sales). This is data that banks and credit card companies love because it helps them create profiles of their customers’ spending habits.
Companies like Facebook might also have access to these statements, depending on what agreements you have with them. These third parties can now track every transaction you make at certain shops and restaurants. Don’t think of non-fungible tokens as fungible currency; treat them as unique items that could easily reveal personally identifiable information about yourself (such as an IP address or your identity) which could then be used against you for criminal purposes.
Never share personal information when using non-fungible tokens! There are some wallets which give users more control over privacy; they allow users to select where token details get shared and ensure no personally identifiable information gets leaked into blockchain storage.
It’s still important to research how each wallet handles privacy before setting one up since some wallets may not offer enough protection for specific situations such as gambling or online marketplaces.
Earn more with physical goods sales
Physical goods are a great way to earn money on NFTs. You can sell items in your store at a premium and use it as an opportunity to educate users about crypto. For example, when you buy a shirt from Cryptograffiti, you know you’re buying a limited edition piece of merchandise from an artist that genuinely appreciates your support.
This adds value to your purchase, giving Cryptograffiti an extra way to generate revenue and gives fans another reason to own one of his designs. (Buy a Cryptograffiti hoodie here.) Another tip for earning money with physical goods is to give them away for free during special events or competitions. Airdrops like CryptoKitties: Hidden Gem’s #CGWISH contest or NanoVault’s @magiccrypto7 contest are fun ways to get people excited about tokens while generating some revenue.
The key with giveaways is making sure they’re legitimate, which is why including more rules than just send 0 Eth to receive 1 token helps ensure your good faith over time. And if you have a thriving community where there’s demand for more physical products? Well, maybe now would be a good time to start expanding into print!
Passive Income from NFT
Unlike a lot of cryptocurrencies, NFTs don’t always require active work to mine or mint. Some of them can be bought and sold on an exchange, while others are designed to be given out as rewards for completing tasks or even purchased directly from developers who hold some tokens back to sell. As long as there is someone willing to buy your earned tokens, it’s possible to earn passive income from NFTs.
How Instagram Help To earn money from NFT
In 2016, Kevin Systrom and Mike Krieger, Instagram’s founders, sold their company to Facebook for $1 billion. Today Instagram has over 1 billion users and has a market cap of more than $100 billion. Which means that if you had invested in just 10% of those users back then (roughly 100 million people),
you could have become a billionaire overnight when Facebook bought it. Even though chances are that many people were already using Instagram at that time for personal reasons,
some did actually use it as an advertising platform, posting branded content in hopes of getting likes which would hopefully lead to paid sponsorship deals through influencer marketing.