Blockchain technology is truly revolutionary because it has allowed people all over the world to create compelling applications for nearly all industry segments and use-cases. The Internet Gaming world has benefited tremendously due to the rise of seamless decentralized applications (dApps). In addition to providing more accessible apps, blockchain or distributed ledger tech (DLT) and smart contracts have also allowed developers to mint non-fungible tokens (NFTs).
NFTs are basically digital collectibles that may become extremely valuable because they are (digitally) scarce. When you think of NFTs, try to imagine those one-of-a-kind, classic Babe Ruth baseball cards or that one amazing Michael Jordan card that nobody owns, except for perhaps one person or a handful of individuals. By accumulating NFTs, you can build up a fine collection of art, much like a million or billion-dollar art gallery that you can show off to your friends.
One of the best things about NFTs is that they allow us to participate in the crypto and blockchain space by expressing our ideas through a form of creative art. Here are some great ways to make money with NFTs.
1) Creating NFTs – (most fulfilling way to participate is by expressing yourself through art)
In addition to being able to explore your creative side, NFTs might also be a great way to earn more money! Nothing wrong with that, right? Of course not. But before we dive into some great money-making strategies, we need to know that an NFT is essentially a digital asset that cannot be reproduced or altered in any manner (that is, it is immutable).
Most consumers think of these virtual tokens as the digital equivalent of artwork from let’s say an exotic private collection, where each collectible is provably unique and claims its own value in an open marketplace.
One project that’s all in on supporting creators, Yup, is focused on creator rewards. The Yup team recently noted that they’re pleased to launch YUP rewards for all dedicated NFT creators. As explained by the project team, we’ve all seen a dramatic rise in NFTs and digital art, especially during late 2020 and throughout 2021. Many more people have been spending time browsing and curating NFTs, because they may find a great opportunity to make sizable returns.
At present, NFT creators and owners are able to generate revenue on the sale and resale of these digital collectibles. The team at Yup has suggested a new way to generate a revenue stream for creators that they are calling NFT Creator Rewards.
Until now, the Yup team had primarily focused on rewarding and recognizing the best NFT curators, however, creators serve a key role in Yup as well. Previously, the Yup Protocol had rewarded curators in freshly-minted YUP tokens which were distributed based on the overall success of their “social signaling.”
With NFT Creator rewards, artists will, for the first time ever, be able to earn YUP for the NFTs that consumers have liked and/or rated, beginning with Opensea, Foundation, and SuperRare.
In a manner that’s similar to provably unique art pieces, NFTs may be sold for real money or even virtual currencies. As explained by the Yup team, the token’s asset transfer, just like any other digital asset transaction, will be permanently registered on an immutable blockchain. This also determines (or validates) who the actual owner of the NFT is.
All NFTs are associated with a digital asset (or even physical assets) of the actual owner. Technically speaking, anything that is able to exist in virtual form may be converted into an NFT. These items may include pictures, notable Twitter tweets, unforgettable Facebook posts, and a lot more that may take the form of NFTs and be sold off by just about anyone.
If you happen to be a talented creator or if you think you can create something that you would be able to monetize, then you may earn money by selling your art pieces as NFTs. Did you know that a New York City resident actually sold a recording of their farts as an NFT? So there may be many more creative ways to make money from NFTs!
2) Flipping NFT’s (Highest risk, highest reward)
Did you also know that you can make a large sum of money just from flipping NFT’s. Although this method involves the greatest risk, it does come with the highest (potential) rewards as well. With this approach, you would study and research the NFT market as thoroughly as possible. After doing your due diligence, you may become an expert at finding good deals on some NFTs, and if you have some holding power, then you can sell them when the market is really heating up.
Of course, this strategy requires patience and a significant appetite for risk. Therefore, it should be employed in combination with other strategies in order to diversify your NFT investment approach and portfolio.
3) Earning Royalties (programmable thanks to smart contracts)
Believe it or not, it’s also possible to earn royalties from your wonderful NFTs, with the help of smart contracts. Since the owner of the NFT can write a smart contract that automatically pays them for sales, it is possible to turn these digital collectibles into a reliable source of income. However, smart contracts can also contain bugs, which have been exploited numerous times.
That’s why you may consider consulting a professional with the right knowledge to begin minting NFTs and setting up a process whereby you are able to collect royalties from your works of arts (in the form of NFTs).
4) Fractionalizing (buying $10 worth of a cryptopunk, or breaking yours up and selling the pieces at a premium)
Another awesome way to generate money from NFTs is through the process of fractionalization. This means that you could buy a certain dollar amount or percentage of a particular NFT and have your friends or colleagues buy the remaining portions. This way, you all have a share in the NFT, as if it were a public company.
By purchasing fractions of an NFT, we can spread the risk of an investment as well between more than one investor or trader. Once again, it is always better to do your own research and figure out an investment strategy that suits your individual requirements.
You may want to consider checking out the NFT Blue-Chip Index (JPG), which is a market cap-weighted portfolio of blue-chip NFT collections. The index aims to offer diversified, liquid exposure to some of the best NFTs via a single liquid token. As noted by the Index Coop, an NFT Index token has been its most frequently requested product and this token may be able to address that demand.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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