What Can You Do With NFTs?
How to Make Money From the NFT Industry
NFTs are quickly becoming one of the most lucrative blockchain-based projects on the market. Some of the best ways to make money from NFTs include:
One of the fastest ways to make money with NFTs is by speculating on projects that have real-world applications with the potential to become more valuable in the future. They can be obtained through minting, whitelisting, or on the secondary market. Today’s top NFTs are associated with art or play-to-earn games. There are two approaches you can take while speculating on an NFTs value.
Flipping: Flipping is a word used to describe the process of purchasing products at a lower cost and promptly selling them for a potential profit. You could choose to flip high-volume NFT projects for faster profits. Though it carries many of its own risks, flipping NFTs is a quick approach to increase your portfolio’s value. Be careful though, as you may end up flipping for a loss if you do not do proper due diligence.
Holding NFTs Long Term: You can also go the other way and buy a specific NFT at a low price if you believe its value will grow in the future. You could end up making a lot of money with this approach because the longer time frame involved gives more room for the value to grow (assuming the project will retain and grow its value).
A good way of determining how profitable an NFT will be is by considering the current and future utility of the token. In addition to being one-of-a-kind assets, NFTs can be utilized to execute a range of tasks. Currently, the top use cases are in art, media, and blockchain games as items or characters.
A digital asset’s utility is a core function of driving its value. An NFT with high usefulness has immediate value, which can grow over time based on the popularity of the underlying project and its traction.
Collecting Art Pieces and Presenting on Auctions
NFT art is a brand-new technique of creating digital artworks that allow creators and collectors to potentially profit from their work. More artists are now using NFTs to showcase and sell their work. Many collectors and artists are already taking advantage of this ‘digital art collective’ model and profiting handsomely.
Paintings and other traditional works of art are valuable because of their creator and the narrative behind the piece. In this same way, artwork can be “tokenized” with NFTs to generate a digital certificate of ownership that can be purchased and sold.
Collectors and artists can easily list their NFT art digitally and share them with a worldwide audience to sell. What’s more, unlike physical art, NFTs cannot be faked, as they use blockchain technology to validate the authenticity of the asset represented by the token. This creates a perfectly fair market with full transparency, eradicating the possibility of art fraud, a rampant problem in the traditional art space.
Buying NFT From Early Projects
A common way people make money from NFTs is by seeking out NFT investments early on and then selling them for a profit. The trick is to start looking for the perfect project as soon as possible, as they may be cheaper.
The most crucial component of locating valuable NFT initiatives is to examine the project for yourself. To begin, you must invest in projects that you are passionate about. Purchasing what everyone else is buying or what the trends indicate has the potential to result in poor decision-making.
A great way to spot projects that have the potential to become valuable in the future is by following Initial NFT Offerings, a crowdfunding model where the non-fungible tokens are sold for a set amount of time at the start of the project.
Selling Gaming Assets (NFTs)
Video games built using NFT technology could very well be the future of NFTs. So far, none of the games that use non-fungible tokens have been widely popular compared to the traditional space, but the potential for using NFTs in video games appears to be huge. Games like Axie Infinity and Planet IX have seen some initial success, but they still have a very long way to go.
Players can collect rewards from in-game coins or collectibles, which can then be exchanged for fiat currency or other cryptocurrencies on exchanges. As the popularity of these games grows, so does the value of the native cryptocurrencies that fuel them, as well as their in-game items. This means holding the native cryptocurrencies of these gaming projects and the in-game collectible in your wallets could be solid investments that can offer large returns. Once again, make sure you do your proper research before making any purchases!