How to Make Money with NFTs in 2023 – Top 6 Methods
The exponential growth in the NFT market over the past 18 months has offered up numerous exciting ways for investors to generate a return. Digital assets have become a compelling way to diversify investment portfolios – with this trend set to become increasingly popular in the years ahead.
This guide will discuss how to make money with NFTs in detail, highlighting the most profitable approaches you can take before showing you which trading platforms are the best for investing in NFTs today – all from the comfort of your own home.
What is NFT?
NFT means non-fungible tokens (NFTs), which are generally created using the same type of programming used for cryptocurrencies. In simple terms, these cryptographic assets are based on blockchain technology. They cannot be exchanged or traded equivalently like other cryptographic assets.
Like Bitcoin or Ethereum. The term NFT clearly represents it can neither be replaced nor interchanged because it has unique properties. Physical currency and cryptocurrency are fungible, which means that they can be traded or exchanged for one another.
Key Features of NFT –
- Digital Asset – NFT is a digital asset that represents Internet collectibles like art, music, and games with an authentic certificate created by blockchain technology that underlies Cryptocurrency.
- Unique – It cannot be forged or otherwise manipulated.
- Exchange – NFT exchanges take place with cryptocurrencies such as Bitcoin on specialist sites.
How to Make Money With NFTs
And in the post, I want to show you exactly how you can make money with NF T’s as a complete beginner. Now, if you’re not sure what an NFT collectible is, there are different types of versions of them. A lot of artists sell their digital art for cryptocurrency, specifically Aetherium and Cardano. But there are also types of NFT collectibles that get released and you can do what we call minting and you can mint, these specific NF T’s. And there are different variations making some arrays rarer than others.
how do you find these NFTs? What is the minting because that’s what you want to do to get the cheapest price possible? And how can you find active communities? And how can generally how can you get into this to make some money, I’m going to show you all of that in this post.
What are the most popular NFT marketplaces?
Well-known NFT marketplaces include:
- Mirror World
Some of these marketplaces are open to all buyers and sellers, whereas others are invite-only. Some sites feature a wide variety of NFTs, and others specialize in specific forms, such as NFT art. NFT marketplaces use blockchain for making purchases and verifying transactions. The blockchain is what houses data about ownership and rights of use. Payments are made in Ethereum’s cryptocurrency, meaning that you’ll have to buy some of it if you’re looking to create or sell NFTs. Crypto exchanges like Crypto, Gemini, and BitMart, and crypto brokers like BSDEX and Toro are popular options for acquiring currency.
How to Make Money with NFTs in 2023 – Top 6 Methods
If you’re wondering how to make money with NFTs, the answer is that there are actually a number of ways. Below we’ll briefly discuss 6 different possibilities.
With that in mind, let’s dive in and explore how to make money with NFT tokens by reviewing the most profitable strategies that you can take:
1. Invest in a Play-to-Earn NFT Project Called Tamadoge
Since CryptoPunks are now out of the grasp of most retail traders, what is the best NFT to make money using this strategy? Tamadoge is an exciting new project that combines meme coin potential with NFT ownership and play-to-earn gaming. Currently available on the OKX centralized and decentralized exchanges, Tamadoge cemented its place as one of the year’s best crypto presales after raising a stunning $19 million.
The pets are based on the 90s craze Tamagotchi but in full 3D. Holders of the pets will feed, care for them and take them for walks to watch them grow – then once they are fully grown, they can do battle with other holders for the chance to climb up a leaderboard and earn rewards.
2. Minting and selling NFT game characters
Blockchain games like Axie Infinity allow you to buy and sell objects, land, and characters in the game. This works just like blockchains and NFTs, meaning you can make a profit by minting your own character or a series of characters as NFTs. If the characters grow in popularity, their value will increase as well, even more so if the NFT collection is rare. Axies and Mystic Axies from the game Axie Infinity are some of the most valuable NFT items on the market, having sold for as much as $1.1 million.
3. Minting Your Own NFTs
A common approach for those wondering how to make money on NFTs is to mint your own NFT. Minting refers to the process of taking a digital asset (such as digital art or music) and placing it on the blockchain. Once the asset is minted to the blockchain, it can then be traded on the best NFT marketplaces, allowing you to monetize your creation.
Minting NFTs is a relatively straightforward process, with top marketplaces like NFT LaunchPad making the process easy for beginners. Due to the enormous growth in the NFT market, the competition among creators is intense, with new collections springing up every day. Thus, if you wish to take this approach, you’ll need to ensure that your creation stands out from the crowd.
4. Staking NFTs
Staking is one of the options to earn money from non-fungible tokens. It is also known as farming, where you need to lock or deposit your tokens to earn yield with huge profit. This is done by creating a link between tokens and decentralized finance which is known as DeFi. By depositing your digital assets, you will be kept away from the owned tokens, and it will generate profits; this is done all by using smart contracts.
Some platforms give you an option for staking multiple NFTs, but generally, only one NFT can be staked in the platform. If you want to earn staking rewards, you need to buy their native NFTs. Another thing is that the people can choose to reinvest the NFTs from which staking reward is earned at the different protocol and can earn yield in great amount.
5. NFT Holding
One of the best strategies to employ when researching how to make money with an NFT is to invest and ‘HODL’. For those who haven’t heard the term, HODL stands for ‘Hold On for Dear Life’ and was popularized by retail traders during the GameStop short squeeze of 2021. Since then, the term has been used to describe an investment strategy where you simply do not sell – regardless of what happens.
Investors who buy cryptocurrency will know that there are both pros and cons to adopting this approach. However, if conducted strategically, HODLing can be a great way to make money with NFTs. Going back to our example of CryptoPunks, investors back in 2017 may have opted to sell because the value of their Punk was not going up. However, those investors who chose to HODL will have reaped the rewards when prices skyrocketed in 2021.
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6. Flipping NFTs
‘Flipping’ is another effective way to make money with NFTs. As defined by Fortune.com, flipping refers to the process of buying low and selling high, thereby producing a positive return. The critical distinction between flipping and other investment strategies is that flipping is usually a very short-term approach, contrasting with the HODL strategy described above.
Finding the best NFT to make money and then flipping it for a profit is challenging, especially since there is so much competition in the market nowadays. However, it is not impossible – although there are numerous factors to consider when researching how to flip NFTs for profit.