How to Make Money with NFTs!

Josiah Nang-Bayi, MD
12 Min Read

NFTs (non-fungible tokens) have exploded in popularity recently as a new way to buy, sell, and invest in digital assets. NFTs represent ownership of unique digital items like artwork, collectibles, and more. While the NFT market can seem complex and fast-paced at first, there are several straightforward ways to start making money with NFTs.

Understanding NFTs

An NFT is a digital certificate of ownership representing a unique digital or physical asset. NFTs use blockchain technology to verify authenticity and ownership. This allows digital artwork, audio, video, and other media or physical objects to be sold and traded like rare collectibles.

Unlike cryptocurrencies, NFTs are not mutually interchangeable since each represents something unique. NFTs do not directly earn ongoing royalties like stocks or bonds unless programmed to do so. However, NFTs’ value may appreciate over time like fine art and antiques.

Six (6) Most Profitable Ways To Make Money With NFTs

Buying and Selling NFTs

The most direct way to make money with NFTs is to buy them low and sell them at a higher market price. NFTs can be bought and sold on several different marketplaces, such as OpenSea, Rarible, Foundation, SuperRare, and Myth Market.

– Research trends and find promising NFT projects to buy into early before hype and prices increase.

– Bid on or buy undervalued NFTs you think will appreciate in the future during dips in the market.

– Carefully choose when to sell your NFTs to turn a profit when prices are up.

Timing is critical when buying and selling NFTs to maximize returns, so staying up to date on the latest NFT news and trends is advisable. Patience is also important, as profiting from NFTs often involves holding them for an extended period as their value increases.

Create and Sell NFT Artwork

For artists, designers, photographers, and other creators, producing and selling NFTs offers a new income stream and customer base. Digital artwork and media sold as NFTs can provide ongoing royalties and appreciation over time. The steps for creating and selling NFT art include:

– Produce compelling, high-quality artwork or other media.

– Add artist info, edition numbers, token standards, etc.

– Mint the artwork file into an NFT using a platform like OpenSea.

– List the NFT for sale on a marketplace at your set price or at auction.

– Promote your NFTs to prospective buyers through social media and NFT communities.

– Earn income from the initial sale and potentially ongoing royalties if the NFT appreciates in value.

For creators, preparing artwork specifically tailored to the NFT space can help maximize sales and earning potential.

Provide Services Around NFTs

There are also opportunities to earn income by providing services related to NFTs, without having to directly invest in or create them. Some options include:

NFT Market Analysis – Conduct research and analysis on NFT marketplaces, prices, trends, top projects, etc. and sell reports to investors.

NFT Marketing and Promotion – Help artists and creators promote and boost visibility for their NFT drops through social media marketing, influencer partnerships, press coverage, etc.

NFT Development – Provide technical and programming services to help create smart contracts, integrate NFTs into platforms or apps, add functionality, etc.

NFT Consultation – Advise clients as an NFT consultant on best practices for buying, selling, creating, and leveraging NFTs for business or investment.

NFT Writing – Create NFT-focused articles, newsletters, e-books, guides, and thought leadership content for publications and clients.

The technical, creative, marketing, analytical, and advisory skills needed in the NFT ecosystem offer diverse income opportunities.

 Invest in the NFT Infrastructure 

Some newer opportunities to earn income with NFTs involve investing early in the platforms, protocols, tools, and infrastructure supporting the NFT market. Examples include:

– Investing in NFT startups building new marketplaces, minting platforms, aggregators, and other enabling technologies.

– Providing liquidity to NFT decentralized finance (DeFi) protocols and earning fees on trades.

– Staking and earning governance tokens for protocols advancing the NFT ecosystem.

– Backing incubators and accelerators focused on nurturing promising NFT companies and founders.

As the infrastructure around NFTs expands, early investment and involvement in foundational companies and technologies could prove highly lucrative.

Leverage NFT Intellectual Property

For businesses and brands, NFTs present new intellectual property (IP) opportunities to engage customers and generate revenue. Some IP-focused strategies include:

– Iconic brands can release limited edition collectible NFTs to tap into new demand and excitement around digital collectibles.

– Entertainment properties like movies, TV, music, games, etc. can sell licensed NFTs of popular characters, scenes, posters, soundtrack clips, and other media. 

– Artists, celebrities, influencers, and athletes can drop NFTs of their work or iconic moments to connect with fans.

– NFTs can be used as virtual tickets, VIP passes, or membership cards that provide access or perks.

Finding creative ways to turn existing intellectual property into unique tradable NFTs allows brands to monetize digital demand for these new online assets.

 Participate in Play-To-Earn NFT Gaming

The rise of blockchain-based gaming centered around NFT characters, powers, items, real estate, and other digital assets represents a new business model for interactive entertainment. Players can earn income through:

– Purchasing NFT characters, accessories, or land they can later sell at a higher value.

– Winning rare NFT items by competing in tournaments and contests.

– Earning crypto tokens for gameplay that can be exchanged for fiat currency.

– Renting out NFT assets like characters, equipment, or properties to other players.

The play-to-earn model is attracting users eager to monetize their gaming time and NFT items. This creates opportunities to earn by investing early in these blockchain games and reselling at a profit later.

Conclusion

NFTs are opening up new income streams for creators, investors, entrepreneurs, gamers, and anyone willing to explore this emerging digital asset space. From buying and selling unique digital items to providing services that support the burgeoning NFT market, the options for making money with NFTs continue to evolve. While the crypto space involves risk, the massive growth in NFTs is creating opportunities for those who take the time to learn about and capitalize on this technology. With thoughtful analysis, strategic moves, and a little luck, NFTs offer an exciting new frontier to generate income both now and in the future.

Miscellaneous: Most Expensive (Profitable) NFTs

The nascent world of NFTs (non-fungible tokens) has already produced some of the most lucrative digital art sales to date. As the market continues expanding rapidly, more record-breaking NFTs are sure to emerge. However, these stand out so far as some of the most profitable NFTs yet.

Beeple’s “Everydays: The First 5000 Days”

This digital collage by American artist Mike Winkelmann, better known as Beeple, made history as the first NFT artwork sold at auction by Christie’s. It sold for a staggering $69.3 million in March 2021 to Singapore-based investor Vignesh Sundaresan. This also marked the third-highest auction price achieved for a living artist. The sale cemented Beeple as one of the most valuable digital artists and helped propel NFTs further into the mainstream art world.

CryptoPunk #7523

One of the first and most iconic NFT projects, the pixelated punk profile pictures created by Larva Labs have exploded in value. In June 2021, CryptoPunk #7523 depicting a blue-eyed, masked alien punk sold for $11.8 million. The sale set a new record price for a single CryptoPunk at the time. Additional rare alien and ape CryptoPunk NFTs have sold for millions, cementing them as some of the most coveted early NFTs.

NBA Top Shot “Cosmic” Dunk

NBA Top Shot leverages NFTs to sell digitally certified video moments of basketball gameplay. A legendary LeBron James cosmic dunk moment NFT from 2020 drew a top bid of $387,600 in January 2022, a record price for the platform. The collectible nature of scarce Top Shot moments involving star players has generated huge demand. This massive price tag demonstrated the profit potential for sought-after sports NFTs.

Axie Infinity Virtual Land Plot

The blockchain-based game Axie Infinity lets players purchase NFTs for virtual plots of land. In November 2021, investment firm Republic Realm paid $2.3 million worth of ETH for nine Genesis land parcels. Virtual land and property continues to attract strong interest, as commercial real estate companies and investors see opportunities to monetize metaverse development. Brands like Adidas have bought virtual land across different NFT platforms as well.

Bored Ape Yacht Club

This wildly popular collection of 10,000 unique Bored Ape NFTs has become a cultural sensation and status symbol. The average Bored Ape sells for around $300,000, with exceptional apes going for millions. In September 2021, the NFT for Bored Ape #8817 set a new floor price record after selling for $3.4 million. The Bored Ape Yacht Club commands astronomical valuations thanks to its brand appeal, strong community, and A-list celebrity members.

While volatile, the NFT market has already turned digital artists, savvy collectors and blockchain projects into millionaires. As adoption spreads, even more sought-after NFTs are sure to shatter records and attract astonishing prices from investors who believe in the transformative potential of blockchain technology and digital ownership. The long-term value of prominent NFTs remains speculative, but momentum continues building around the use of NFTs for authenticating and trading exclusive ownership rights.

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Josiah Nang-Bayi, MD is a medical doctor by profession, an author, a financial literacy and digital assets enthusiast, an entrepreneur and a growing philanthropist.
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