How to make money with NFTs
There is no doubt that the Non-Fungible Tokens (NFTs) revolution is here to stay insha’Allah (God willing); it’s enough to look at the astronomical sums that people are willing to pay in some cases for these digital assets. This is one of the reasons why these tokens are becoming the favorites of creators, entrepreneurs, and fans of the crypto world, and their popularity doesn’t stop growing.
Naturally, this is sparking more and more the interest of the general public, especially those starting out in the crypto world with the hope of making good money with relative ease.
For this reason, and considering the great recent demand for information on this topic, I decided to prepare this post, How to make money with NFTs, to help you start on the path of making money with your NFTs. If you already know what an NFT is, skip the next section, otherwise, I’ll explain it briefly.
What are NFTs?
NFTs are digital assets that have been in circulation since 2012 and that, as with cryptocurrencies such as Bitcoin, are created and stored on a blockchain.
This means that NFT tokens cannot be duplicated, but unlike what happens with cryptocurrencies, each NFT has its own features that make it unique and unrepeatable. In other words, no two NFTs are equal.
This is the simplest explanation, but if you want to find out more info about the basics of NFTs, I recommend reading this post, What are NFTs and Do They Have a Future?
Can you really make money with NFTs?
Indeed, it’s possible to make money – a lot of money – with NFTs, as has happened in some cases like this. Take into account that the world is becoming more and more digital, which combined with the worldwide health crisis of COVID, has only increased the popularity of this trend. Like it or not, the digitization of assets/tokens are gaining an increase in monetary value.
The reality is that there are many, many people willing to pay large sums of money for these digital assets and NFT tokens are already revolutionizing the market in areas such as art, videogames, collectibles, and more. In this sense, opinions are divided since, while some consider that NFTs are just a bubble about to explode, others see them as the future of art. Time will tell.
Of course, you must be clear about one thing from the beginning: Due to the volatile nature of the crypto industry, investing in NFT tokens is a HIGH RISK investment. The return on investment can be really good, but investing without knowledge can lead to losing a lot of money as well. In any case, remember to always do your own research before taking any financial risk.
Top 4 ways to make money with NFTs
Let’s now look at the most popular methods for users to monetize their NFTs.
1. Create and sell your own NFTs
If you have the soul of an artist and fancy yourself to be creative, along with having good ideas, then creating artwork in the form of NFTs can be a great option to monetize your work. You can create almost anything you can think of in NFT form, including:
- Digital art
- Memes
- Music
- Audio clips
- Videogames items
Your imagination is the limit.
With that being said, as Muslims, we must also be mindful of what type of music and artwork is permissible according to the Sharia. Here is an excellent article that covers the Sharia perspective on drawing, Real Talk: Is Drawing Pictures Prohibited in Islam?
As for music, here is an article that covers the Sharia perspective on music, Real Talk: Is All Music Forbidden In Islam?
And if you are curious as to if NFTs are halal, then see my blog post, What are NFTs and Do They Have a Future?
And as for NFT platforms, there are several platforms on the Web that allow you to create NFTs quickly and easily, in addition to offering you a market where you can put your works on sale. Some of these are:
Now, if you like this idea and want to start creating your own NFTs, follow these steps:
1.1 Create a cryptocurrency wallet
This is necessary to be able to store and move your digital assets. Some of the most popular are Metamask, Enjin, and Trust Wallet.
1.2 Open an account on any NFT platform
As I already mentioned, these are platforms that allow you to create and market your own NFTs. See the options above.
1.3 Create your NFT
Once your user is created, proceed to create an NFT token using the tools offered by the platform you chose.
1.4 Publish your NFT
Enter the marketplace of the selected platform, put a price on your creation, either fixed or auction type, and stay alert to possible offers.
1.5 Sell and receive your money
When a buyer makes their offer and ends the negotiation, the money will go directly to your crypto wallet – remember that the NFT platform will charge you a commission for its services.
2. Buy and sell digital artworks
This option can probably be the most profitable of all, although it’s also quite risky. Did you know that on March 11, the famous auction house Christie’s sold an NFT artwork for the first time in its history, worth $69 million? And the artist was a total stranger at that moment!
In order to use this method, you must have a very good artistic eye to be able to discern between works that can really be worth a lot of money and those that do not.
You can enter the platforms that I already mentioned and then search for works by new artists that you consider have potential and whose works are at a low price. After this, put your NFTs for sale on another platform, make du’a (prayer) and pray that the price of these works goes up and you can make a good profit.
3. Licensed collectibles
Considering the nature of the technology behind them, this seems like one of the most logical ways to make money selling NFTs. Basically, you can digitize almost any type of traditional collectible item, including trinkets, memorabilia, and trading cards.
At least in the United States, the most popular collectibles are sports cards, mainly for baseball, football, and basketball teams, so if you live in this country, you can start there. The best part is that thanks to blockchain technology, it’s very easy to prove the authenticity and uniqueness of any of these collectibles.
4. NFT videogames
Blockchain-based games use the real property of in-game items thanks to the characteristics of this technology. In-game objects based on NFT tokens allow players to verify that these items are unique and unrepeatable. Naturally, this gives an extra value to such items, so it is feasible to collect, sell, buy or trade them. This feature has made users flow to blockchain/NFT games because they can do something they’ve always wanted: buy and sell items in an open market.
And how does it work?
The first thing to consider is that you need to invest time and work – and in some cases, money as well – to win items. Many people are professional players dedicated to this and spend hours playing to accumulate what is necessary to get the best items, skins, or characters from their favorite game.
Although these NFT-based items are somewhat more like trading cards, they actually have the advantage that they can change over time, for the better, or to acquire multiple additional features. Some of these unique and special objects or characters can become true objects of desire for which many people would pay even thousands of dollars.
What are some of the best games to make money with NFTs?
Alien Worlds
In Alien Worlds, you can play and collect unique digital items in the form of NFTs. The game consists of a metaverse in which there are several independent planets, each with its autonomous decentralized organizations. Players interact with these planets through mining, acquiring or renting land, and voting for planetary governance to affect payouts.
Mining comes first in the game because as you mine, you can earn TLM (Trilium) and have a slim chance of finding an NFT. These NFTs can be anything from a super rare avatar, to a legendary sword.
CryptoBlades
CryptoBlades is a medieval fantasy browser game that revolves around acquiring legendary swords. Players have characters and weapons that they can improve through a token called “Skill,” which they can obtain as a reward for winning battles. Every character in the game works as an NFT, which means that they’re virtual objects that cannot be cloned. However, these can be traded or sold to other players on other platforms, and this is where the possibility of making money with this game comes in.
Axie Infinity
The NFT game of the moment. Axie Infinity is a game very similar to the popular Pokemon, since here you must also face, defeat, and collect monsters (Axies) throughout a huge virtual world. In Axie Infinity, each monster is represented by an NFT token, each having unique features. These monsters can be bought, raised, and even traded with other players.
To start in the game, you must acquire a minimum of three Axies, which you must buy; although there is also the possibility of acquiring a “scholarship,” so that you don’t have to make the initial investment – which can actually be prohibitive for many people. After this, you can acquire other Axies by completing missions and facing other players.
The game is powered by Axie Infinity (AXS) currency and Smooth Love Potion (SLP) and is available for Windows, Mac, Android, and iOS.
Upland
Upland, another excellent NFT-based game that has become very popular since its inception in 2018. This is a multiplatform videogame whose mission is to, “break the barrier between the real world and the digital world.”
Upland is very similar to the popular Monopoly, in which users can buy, sell, and exchange virtual properties. The best part is that these properties have real blockchain addresses – implemented in the form of NFTs – and can be bought with the UPX token or fiat money.
Something great about the game is that each time you create buildings, you’ll earn UPX, which added to the rewards for stacking that each property generates, can give you a very interesting income in cryptocurrencies in a monthly basis. Once you have a considerable amount of UPX, you can withdraw this money to a Paypal account.
Additional ways to make money with NFTs
NFTs for fashion products
This method is similar to selling NFT digital art. Fashion, clothing, and accessory brands are making a profit by launching limited edition NFT tokens.
These tokens are based on pieces from their fashion collections, fully digitized, but with some added value, such as iconic celebrity pieces or design signatures. In some cases, brands place their NFT assets in exclusive marketplaces where consumers can purchase them alongside their fashion products.
There are numerous hijabi sisters and Muslim designers who post their latest fashion designs on Instagram. Why not take those designs and digitize them into an NFT?
Staking NFTs
If you own a certain amount of NFTs, you can place and keep them on some platforms that allow you to make a profit by staking your digital assets. Best of all is that this method can bring you a good amount of rewards without having to do basically anything. Many of the platforms I already mentioned earlier in this blog post allow for NFT staking.
Invest in NFT startups
There are numerous startups that are developing practical applications for all types of industries using NFT technology. This can be an opportunity for those who wish to invest in this technology indirectly and in a more traditional way by buying stocks from these companies.
Conclusion
It’s very likely that in the coming years – sooner rather than later – NFT technology will advance and capture a larger share of the digital marketplace.
The reality is that this technology has numerous practical applications for all types of industries, not only collectibles and videogames. This new wave of opportunities is just beginning, but it already has huge profit potential. What I have mentioned here are just a few examples of the current best ways to make money with NFTs.
There still exists a whole world of possibilities to discover as NFT and blockchain technology improve and more and more people adopt it insha’Allah. Time to enter?
PLEASE KINDLY SHARE THIS ARTICLE IF YOU’VE FOUND BENEFIT IN IT
