In this century, topics like cryptocurrency, Blockchain, metaverse, Defi, and NFTs, have become popular. Some people know about them, but the percentage of those that don’t is relatively high. Some hear the words occasionally and wonder what they are, especially regarding NFTs. The most common question is usually how to make money with NFTs.
If you are part of the multitude that wants to know more about NFTs, how to make money with NFTs, and are willing to make it your stepping stone into the world of Blockchain, then read this article to the very end.
Table of Contents
What are NFTs?
Before we proceed to the basic NFT facts, what are NFTs themselves?
NFTs’ full meaning is “non-fungible tokens.” As the name implies, a Non-Fungible Token (NFT) is a digital token linked to a piece and encrypted with the artist’s signature. It validates the piece’s possession and authenticity. It’s a structure of digital assets that can signify real-world artefacts like art, music, video, and in-game stuff.
A non-fungible token (NFT) is a non-interchangeable unit of facts saved on a blockchain as a tradable digital ledger. Every token is uniquely identifiable, which means they are distinct from one another.
Every NFT has its price, and you can use them to change or promote related digital assets.
Also, in contrast to cryptocurrency, NFTs are no longer reachable in limitless supply. Instead, they are each one-of-a-kind that exists in restrained numbers.
The Historical Facts About NFTs that You Must Know
The history of NFTs started in the year 2014. The first person to create one was Kevin McCoy on May 3rd, and he named it Quantum. A quantum is an image of various shapes like octagons, circles, and arcs concentric to a common focal point. NFTs existed to integrate collectables into the world of technology. Over the years, passionate art collectors have purchased these collectables. This digital advancement made it easier to sell artworks than normal public bidding. So the creators had collections of artwork digitally integrated and created.
NFTs have grown gradually over the years since then.
Timeline of NFTs Development
- We had colored coin collections from 2012 to 2013.
- In 2014, we had counterparty collections.
- We had Genesis spells on the counterparty in 2015
- In 2016, we saw the introduction of meme characters into the NFTs, thanks to Rare Pepe (a popular frog head meme). Rare pepes started, the creators of Larva Labs created distinct characters on the Ethereum blockchain. They named the collection Cryptopunks and referenced a Bitcoin experiment. The ERC721 and ERC20 – Ethereum token standards reached full establishment. ERC721 assists in tracking ownership and movements of individual tokens within a single, smart contract.
- Crypto kitties started to exist following ERC721 specifications. It is a blockchain-based virtual game that allows players to trade, collect, and breed virtual cats.
- Although the NFTs started around 2014, 2021 was the first year that this new technology broke out into the dominant current, interrupting the world of art and industry outside of it. In the last 12 months, the NFT scene has evolved quickly. That is why we are here to explain some basic things, including how to make money with NFTs.
How do NFTs Work?
Anyone who wants to make money with NFTs must know how they work. Unfortunately, many people make precious misapprehensions about NFTs because they do not understand how they work. This section will give you an overview of how NFTs work, especially in Nigeria. After this, you will be able to explain how it works to your friend.
You can create or form an NFT from digital objects that represent both physical and non-physical particulars, including;
- Works of art, mainly paintings
- GIFs
- Videos and highlights from sporting events
- Collectables
- Video games and virtual incorporations
- Music
These are only the most common digital assets.
Here’s a story about Janet that will help us understand how NFTs works and how we can make money with NFTs. Janet is an experienced painter willing to do an online exhibition of her artworks. Great, right?
But she is afraid of something – stealing and online forgery. So she asked some of her friends to help her out with possible solutions to avoid adulteration. Ade, who is an NFT expert and a friend of hers, explained that she could protect her artwork with the use of NFTs and at the same time make money with NFTs.
He told her about using a unique digital signature distinct from each of her artworks. He said that with those signatures, adulteration would be impossible. After assuring her of the safety of her creative properties, Ade went further to explain NFTs down to the full meaning and their applications.
So Ade advised Janet to buy NFTs for all her artworks to protect them and retain their ownership rights.
He also told her how she could exchange them for traditional money or cryptocurrency. Janet did as Ade said and got results, not only in sales but also in the exposure of her business to the Blockchain system.
So, from this story, I hope you now understand how NFTs work.
Read also: The Metaverse for Nigerians in the most straightforward words
The Advantages of NFTs
NFTs have helped to put power back into the hands of the artists, making it easier for individuals to request their work without the help of a mediator.
NFTs are also helping artists get into a better position to prove the power of their work. Creating a commemorative confirms the authenticity and makes it easier to copyright their digital work.
Now here are the main benefits of NFTs:
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Ownership
NFTs have helped individuals like Janet to have full ownership rights over their digital assets, thanks to the unique digital signature. It gives them the copyright authority on their artworks and makes them worry less about forgery and other illegal issues that could affect their artworks.
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Transferability
Like I have said earlier, NFTs make it possible to transfer the ownership of these assets online easily and without stress. It lets the buyer purchase the artworks for other valuable items like Bitcoin and Ethereum, but they can’t exchange with the same NFT asset since it’s non-fungible. This also helps to make money with NFTs by a simple exchange with other items of value.
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Authenticity
NFTs have helped to identify authentic and fake assets in the digital world. It is easy to forge an artwork, but thanks to the NFTs, it is impossible to forge or reuse the unique digital signatures of an asset.
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Sales growth
Since NFTs came to the limelight, individual NFT users have always given very positive feedback on their sales of assets. This is because NFTs have made it easier to create a safe and bias-free platform for both traders to carry out their transactions without fear of fraud. Buyers always like to get what they want with just a few clicks and a limited physical presence. NFTs guarantee these expectations, which increase the engagement of interested buyers and boost the sales of such assets.
Imagine selling out all the artworks in a collection within one month due to the effective exposure that NFT provided. You’ll be happy to make money with NFTs without stress.
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Exposure to the world of cryptocurrencies
As explained earlier, you can exchange NFTs for cryptocurrency; it’s one of the major ways people use to make money with NFTs. It will expose you to the world of Blockchain and cryptocurrency. As we all know, the world is switching to WEB 3 now, and it will get to a time where almost all things will be available for purchase in Cryptocurrencies. I believe that now is the best time to embrace NFTs.
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Creation of economic opportunity
Many people have gained employment due to the establishment of this NFT program. People with experience in Blockchain benefitted most because they created the platforms for trading NFTs. The boost in NFTs sales will also create more opportunities for people, regardless of your category.
NFTs are blessings to individuals who have assets to sell online.
Read also: Disadvantages of NFTs: The flipped coin
How to Make Money With NFTs
Now that we have been talking about NFTs, let us talk about making money with them. I know this part always raises your eyebrows, but I believe you’ll understand very soon.
In this section, I will be telling you the Top 4 ways you can make money with NFTs. Although almost everyone knows about Number 1, the rest are uncommon, and they are also great ways to make money with NFTs.
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How to make money with NFT art
This is the first on the list and the most popular because it involves creating and selling NFTs. This is very interesting if you have experience creating online digital arts.
Oh, you do not know how to create NFTs? We’ve got you covered. Now let me give you a few little tips on how you can do that:
- Choose a digital asset from which to create an NFT. It could be one of the items in the previous section or any other digital asset you can imagine. Note that the more unique this NFT, the greater the value you can attach to it. Ensure you have intellectual rights before making an NFT out of the asset.
- Next, choose your Blockchain – the cryptocurrency platform on which you want to mint your NFT and make sales. ETHEREUM is the most popular currency.
- The next step is to create a digital wallet if you don’t already have one. Some of the best NFT wallets are Metamask, AlphaWallet, Trust Wallet, Math Wallet, and Coinbase Wallet. This wallet will be like a digital bank for your money to invest in the NFT and where most of your sales payments will go.
- Locate an NFT marketplace to sell your NFT. The most popular is the Open Sea. Others are Axie Marketplace, Larva Labs/Cryptopunks, Rarible, SuperRare, Nitty Gateway, Mint able, and others.
- Once you’ve chosen your NFT Marketplace, the platform will provide you with step-by-step instructions on how to send your NFT files, or digital assets files, in a marketable manner.
- The final step in NFT minting or creation is deciding how to monetize and sell your NFT.
You have the following ways you can do that:
- Fix a constant price for your NFT.
- Time your auctions to attract interested buyers and set a closing date to make them decide fast.
- Conduct an unlimited auction with no time restrictions, and you can terminate at any time.
NB: You will need to fix a minimum price and time for your NFT if you opt for auctions. And also, do not settle for less, so you lose money on NFT sales.
You will definitely need money to mint your NFT, but you will also benefit from your successful sales.
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How to make money with NFTs by trading NFTs
To make money with NFTs, trading is another option. This is possible as you can trade NFTs for a price. Although NFTs do not have the same value, you should get NFTs that will gain value and yield profits later on in the future as a collector or buyer. This is just like buying an asset and holding on to it to get the value after proper analysis, then selling it for better profits and value.
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How to Make Money with NFTs by NFTs Gaming
Yes, you can make money with NFTs by just playing NFT games. Games like Sorare, Gods Unchained, Crypto Kitties, Axie Infinity, and The SandBox will allow you to pay with or without entry fees and encourage you to get collectables and in-game objects.
The more and better you play, the more you buy and earn.
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How to Make Money with NFTs by Renting out NFTs
Renting NFTs can also earn you money, especially if they are valuable. Various card trading gamers using NFT cards have a high chance of winning such games. It gives room for the renting of NFTs based on a smart contract signed between both parties where the time and fee of rental are clear. An example of a platform for renting NFTs is reNFT.
Read also: How to transition into tech as a Nigerian
Conclusion
Non-fungible tokens are distinct pieces of data stored on a blockchain. Examples of digital assets are digital artworks, music, video clips, memes, etc. NFTs will drive the digital economy. Technology is still in its initial stages, so we must wait and watch how it evolves.
In summary, NFT is an excellent way to make money online and a great way of introducing oneself to cryptocurrency.
I hope this has been educational for you on basic things about NFTs and how to make money with NFTs.
Do you have anything to say about this post? You are free to speak your mind in the comments section. You can also have an audience with Insight.ng via our WhatsApp community as regards NFTs.
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About Author
- Emmanuel Odebiyi is a seasoned content writer who specializes in writing valuable and engaging content in the technology, career, freelancing, finance, and lifestyle niches. He also writes sales copies that turn visitors into returning customers.
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