Are you interested in earning money from non-fungible tokens? If you are, then you need to know about the different ways you can do so with NFTs. This guide will give you an overview of the different ways you can earn money from your NFTs, including selling them and earning from dividends on your holdings as well as tips on how to make sure that your coins are worth as much as possible so that they’re profitable to sell and own.
Part 1: What are non-fungible tokens?
Anyone who is familiar with NFT’s has likely heard of CryptoKitties, CryptoPunks, Etheremon, and many others. They are digital tokens in which each token is unique and can hold value.
These tokens do not have fungibility meaning that each one is different than every other token within a specific group. Because of their uniqueness, these tokens offer endless opportunities for developers who wish to implement them in their own games or platforms.
In fact, companies like Axiom Zen and OpenSea are already doing just that by allowing users to buy/sell these non-fungible tokens on their websites for either fiat currency or other cryptoassets like Bitcoin and Ethereum.
Part 2: Gaming and collecting economy
For those of you who are into trading, gaming and collecting assets, NFT can be an interesting opportunity. You can now buy cool looking assets on blockchain. Not only are they cool looking but they also have real value that is currently being traded on exchanges.
However, there is one caveat; when it comes to making money with NFT you need to know what you’re doing and not just jump right in. There are 2 main ways people are making money in these areas: investing in art collectors or actively trading them for a profit (both short term and long term).
Let’s break down each of these methods a little more deeply so that you understand what path will suit your interests best…
Part 3: Decentralized exchanges
While cryptocurrency transactions are on-chain, most exchanges have remained centralized. While there have been a few decentralized options in recent years, such as ShapeShift and Bisq, these simply match buyers and sellers and allow for simple buy/sell trades.
In order to provide a deeper level of liquidity, more complex trades (such as margin trading), and increased safety guarantees, decentralized exchanges offer users far more options than their centralized counterparts—at least at a theoretical level.
The issue here is that decentralized exchanges face significant challenges with how they are architected today.
Part 4: Collectibles in Augmented Reality
A Case Study in CryptoKitties In December 2017, a new kind of digital collectible emerged: Cryptokitties. The popularity of these unique assets was instant and explosive. In fact, they were so popular that they caused a minor network congestion crisis on Ethereum.
While there is no doubt that Cryptokitties were an exciting development for blockchain technology, their launch also revealed some of its shortcomings when it comes to digital collectibles.
I will discuss how NFTs can be used in augmented reality games and provide a case study based on my own experience with NFTs and AR games. Augmented reality games are likely to become one of the first major use cases for non-fungible tokens as well as one of its most lucrative markets.
Part 5: Tutorials on how to buy/sell
A tutorial on how to buy and sell ERC721 tokens and why it is important for a buyer to be wary of scammers. Also why it’s not wise for sellers to sell their NFTs for too low (or high) of a price.
To make sure that what you are buying/selling is legit, check out Part 6: How to Know if an ERC721 token is legit or not? It will teach you how to avoid getting scammed by fake ERC721 tokens.