What are NFTs?
If you’ve been on social media these days, you are sure to have come across a word called “NFTs”. They are gaining wide popularity due to the surge in their trading. People are opting to acquire NFTs and sell them to gain profits. But among all this, have you wondered what exactly an NFT is? What does it do? How is making money from NFTs possible? NFT stands for non-fungible tokens. They are based on the Ethereum blockchain. Let’s break it down a bit. ‘Non-fungible’ essentially means something unique and can’t be replaced; in other words, one of its kind. Here’s an example, if you’re deciding to trade a piece of art such as a painting or a drawing with another person, it is unlikely that the two of you have the same piece. Even if your art is based on the same thing, there are many differences between them. Here, in this case, the art piece is a nonfungible token.
How to make money from NFTs?
Lately, social media has been buzzing with talks of making money from NFTs. But how exactly is that possible?
NFTs have grown valuable as unlike the ETH coins, they serve the extra purpose of saving information. NFTs can take the form of anything digital, digital art being the most popular form.
- To make money from NFTs, you need to have knowledge of what an NFT is, which has been provided to you. Next, you need to make one and sell it on platforms that you deem most appropriate. After that, you should link your crypto wallet and then finally list it on your chosen platform to sell it.
- Another way of making money from NFTs is to rent them out. You should keep in mind that these NFTs are irreplaceable and thus cannot be duplicated. In this process, you can give them out for a fixed period in return for money.
- The most popular way of making money from NFTs is selling them on marketplaces such as CryptoPunks, Raible, Axie marketplace, and OpenSea among many others.
- Have you ever come across the term ‘royalties’? Royalties are legally binding payment that is given to the original creator whenever their assets get sold or used. This can also be applied to NFTs. Using royalties in the trading market will sure to gain you huge profits.
- NFTs provide a platform for trading in almost every domain. Trading NFTs in the world of sports can gain profit. They can be used to increase fan engagement, documenting memorable moments of the players and the viewers. They can also be used to sell merchandise.
Trading NFTs is a highly profitable way of making money. Think of it as a business. A shop seller buys an item at a much lower price than what they sell it for. People have known to make a profit of about a thousand times the original price. Although some NFTs can gain you millions, some of them can also be quite worthless. That’s something you need to look out for.
In today’s market, NFTs are becoming a common way of trade. NFTs are helping people get rid of debts, travel, achieve their dreams, have a stable and secure life, and also provide a lot of money. Even though NFTS has grown popular tremendously, it is safe to say that they are not the mainstream. Better to jump on the ship sooner rather than later. Using NFTs as a way of making money is sure to gain explicable levels of success and profit.