The use of Non-fungible tokens, commonly known as NFTs, is one of the new trends that has taken many people by surprise.
However, not everyone understands how NFTs work or what they are. Worry not because this article highlights the important things that you need to know about NFTs.
We are particularly going to focus on how Non-fungible tokens have revolutionized the industry and the world as a whole. Without further ado, let us jump right into the discussion.
What are NFT’s?
Before we go any further, let us start by defining the term NFTs as this will make it easier to understand the key points in our discussion.
So, what are NFTs? In a nutshell, NFTs are a unique set of digital collectibles with distinct values. They have digital certificates that can confirm their authenticity and value.
Additionally, NFTs are not interchangeable since they differ in terms of value. This makes them different from bitcoins and other forms of cryptocurrency.
Important things that you need to know about NFTs
Even though NFTs have taken the online world by storm and people benefit from them, there are a few points that people still miss when engaging in trade.
- NFTs are just but a bundle of data stored in an online ledger known as blockchain. As such, they can be a representation of any piece of digital art, music album, video, property rights, just to mention but a few.
- Each Non-fungible token can represent an asset with a different value, and that is exactly why you cannot exchange NFTs and still get an item that is of the same value as the one you have exchanged.
- NFTs are not a form of cryptocurrency but rather cryptographic tokens.
How have NFTs Revolutionized the Art Industry?
Since NFTs became famous, artists from different parts of the globe have benefited a lot from the available online services. Besides, the NFT industry is currently booming in terms of music videos, GIFs, digital art, and many more.
NFTs have made it easy for people to access different forms of crypto art. And the fact that they are stored in digital ledgers means just about anyone can access them.
People can now commodify collectibles and other valuable items that they would like to sell online. Many artists have invested in NFTs and have profited a lot from the trade.
Non-fungible tokens have also changed the way people handle and sell different pieces of art. Artists can now register different types of artwork under their names, thereby preventing possible cases of art theft.
Ways by which Artists/Collectors and creators can make money from NFT’s
1. Playing NFT games
NFTs have not only influenced the world of art but have also impacted the gaming world. The availability of play-to-earn NFT games has made it easy for people to benefit from this new trend. NFT technology gives users full control over different assets in the available games.
In addition to this, the items in the games are unique and are also anchored to valuable digital assets that users can benefit from when making use of NFTs.
Depending on the value of the game your game assets, you can sell to potential buyers to earn real money. Nonetheless, you can only benefit from this by choosing high-value games.
2. NFT Flipping (Buying Low/ Selling High)
Aside from the games, NFT Flipping is also another way through which you can earn good money.
However, before you start selling or buying, ensure that you know your niche. This will not only help you know the current market prices but will also aid in the decision-making process.
As such, you should conduct thorough research on the assets that you wish to trade before buying or selling. The only way to make profit is by buying assets from other traders at a low price and later selling them at a higher price.
The good thing about the NFT flipping is that the market is still not as competitive, so you can easily make large profits.
NFT Marketplaces like Rarible, OpenSea and Nifty Gateway are some of the top sites where you can buy and sell NFT’s and NFT collectibles.
3. Investing in early NFT Projects
NFT rolls out new projects from time to time, and those who are willing to take risks are always more than ready to invest. You can invest on short term or long-term basis depending on the assets that you are dealing with.
You should only invest in top-rated NFTs since they are more likely to earn you profits. That being said, you should always be keen when analyzing new NFT trends.
That’s where NFT Investing comes in where you want to find NFT projects that have the potential to earn you huge profits in the future. The key thing here is the invest in early NFT startups and projects that haven’t been released yet, but are likely to be affordable as well as valuable.
There’s an entire Article that I’ve written on NFT Flipping and How to make money From NFT’s?. You should definitely check them out.
4. Creating your Own NFT Art and Collectibles
If you are not comfortable with the above methods, you can consider creating your own NFT art. The process is very simple and will only take a few minutes of your time.
All you have to do is pick an item that you want to tokenize and assign a digital asset to it. Ensure that you have a functional Ethereum wallet before starting the process. Once your collectibles are set, you can distribute and sell them to buyers.
The marketplace that you choose will also determine how fast your assets will sell once they are published online.
5. NFT Domains
Various companies allow users to purchase NFT blockchain domains. With that being said, you can invest by buying the domains, after which you can resell or rent the domains to other users.
The amount of money that you will earn will depend on the value of the domain in question and the type of buyer that you are dealing with.
Many people have benefited a lot from this trade, making it one of the best options that you can for if you are looking to earn some good money from NFTs.
Non-fungible tokens have completely changed the way people sell and buy items in the collectibles and digital art world. NFT technology allows people from different parts of the world to safely buy and sell assets online. Artists, in particular, can now sell their collectibles without worrying about plagiarism.