The 21st century is the century of technological innovations. Numerous technologies have graced the digital space lately, but the one that has outshined the rest is blockchain technology.
Cryptocurrencies and NFTs are two of the most dominant technologies that blockchain has presented us with.
Let’s put the spotlight on NFTs today. What they are and how investors are making thousands of dollars, if not millions, with NFTs.
What are NFTs?
Many creatives around the globe still question what NFTs are. So let’s explain them.
NFTs, Non-Fungible Tokens are a special type of crypto asset that represent the ownership of unique digital items. With them, you can tokenize collectibles, artwork, and even real estate now.
In simple words, NFTs allow you to prove your ownership of a digital asset to someone.
Why Do We Need NFTs Anyway?
Now, apparently, it may seem insignificant to you but don’t judge too early. We live in a digital era and with time it is getting incredibly difficult to authenticate ownership or manage your online assets that anyone can just copy-paste or take a screenshot.
If you are a concept artist and your job is to design digital assets or artwork for prominent gaming companies, Rockstar or UbiSoft for instance.
You put your best and designed an amazing piece of artwork and now you go to these companies to sell them.
Logically, you would need to authenticate with some sort of tracking or marking ownership so that the buyer can verify that it’s original, not just a screenshot.
This is where NFTs step in for you. Like any physical art, you can now sell your digital artwork to companies while retaining the copyright.
Oftentimes, the NFT owner decides to sell the copyright as well in return for the commission in secondary sales that the buyer makes.
How Can You Make Money with NFTs?
Buying and selling NFTs to make huge profits is a hot trend now. Investors buy popular NFTs and sell them with enormous margins.
Then there are others who take another route to get rich with NFTs. They mint NFTs themselves!
But it cost quite an amount. Estimates confirm that you’d pay around 900 dollars while minting NFT collectibles.
But one of the easiest ways to make money off NFTs is to sell them higher than you bought them for.
Carl Runefelt is a global crypto leader and social icon with over 4 million followers across social media. He’s a strong proponent of crypto and NFTs.
While advising on NFTs on his YouTube channel, The Moon, he recommends, “When you see the new NFT collection coming out, you have to make sure that it is of high quality because anyone with a computer can create an NFT collection. You find the right collection either where the artist is the famous one because it gives it value.”
But that’s not it; there are other ways to make money with NFTs as well.
Let’s dig in
Buy an NFT you love
There is a huge collection of NFTs out there. But which one should you go for?
Consider it a golden rule: buy an NFT you are genuinely interested in. Thus, you’d be more energetic and enthusiastic about selling it to the right person for a good profit.
Even if you couldn’t sell it for some reason, you’d be quite happy to keep it for yourself as something you’ll always appreciate.
Carl Runefelt did exactly that. On purchasing crypto punk NFT, Carl said, “I really think that the crypto punk NFT is a good purchase which I bought for 1 million dollars. I am very certain that I can easily sell it for 1.5 million dollars if I put it out for sale and who knows, in five years, maybe it’s worth 20 million dollars.”
Rent out your NFTs
If you are looking for a passive income then renting out NFTs is an excellent option.
How this works is that in games, players can borrow NFT cards to increase their chances of winning. The deal between two parties is governed by smart contracts.
These contracts outline the rental agreement and rates of the lease.
Flip your NFTs
This is the most used and quickest strategy to make an enormous amount of money with NFTs.
You would buy an NFT and then hold it. When the demand rises, you flip it to a higher price, bagging yourself a significant profit.
Carl Runefelt says, “NFTs are definitely speculative, but as you have seen, there is a lot of demand for them because they are scarce. There is always a new collection coming out all the time.”
It’s Risky but Highly Profitable
Experts opine that making money with NFTs is quite risky. But remember, this risk is worth the investment since it gives huge returns
If you remain up to date with market trends, do smart networking, and intelligently make decisions with your investment then you’re probably the next millionaire in the making.
