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How To Make Money With NFTs

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The world of digital art and online businesses is constantly evolving, with the introduction of blockchain technology and Non-Fungible Tokens (NFTs) bringing new opportunities for creatives of all kinds to make money.

NFTs, or Non-Fungible Tokens, are digital assets that exist on the blockchain. They are unique and cannot be exchanged for another asset of equal value, though as technology advances, this statement can quickly change as blockchain technology advances rapidly.

NFTs can represent anything from artwork to collectibles to exchangeable in-game items. With the rise of cryptocurrency and blockchain technology, NFTs have become a popular way to make money online.


Key Takeaways

  • Create an NFT collection with utility, innovation, social and monetary value, story, and originality.
  • Create a 1:1 unique NFT and emphasize the importance of the artwork.
  • Earn royalties from secondary sales.
  • Flip an NFT you just bought for a higher price.
  • Create hype around your NFT collection through a highly-engaging marketing campaign.
  • Build a massive community and a following for your NFT project.
  • Stealth launch your NFT project.
  • Invest in NFTs early on and sell when the floor price has increased.
  • Collect 1:1 NFTs and sell when there’s high demand for the NFT.
  • Become an affiliate for an NFT marketplace.
  • Sell on smaller marketplaces with low competition and bigger exposure.

Creating And Selling Your Own NFTs

One way to make money with NFTs is by creating your own NFTs and selling them on platforms like OpenSea or Rarible, OpenSea being the biggest but also the more competitive marketplace. You can create digital art pieces, collectibles, music albums, videos, or any other type of digital asset you want.

Once you’ve created your NFT, you can list it for sale on these platforms, where buyers can purchase it using cryptocurrency such as Ethereum (ETH). There are massive amounts of NFT marketplaces available already, so OpenSea and Rarible definitely are not the only places to sell your NFTs.

Investing In Existing NFTs

Another way to make money with NFTs is by buying existing NFTs. This involves researching the different types of NFTs available and analyzing their potential returns before deciding which ones to invest in. It’s important to remember that investing carries risk, so it’s best not to invest more than you can afford to lose.

It’s impossible to say which NFT collection or 1:1 piece will take off and give you the ROI you want. What you should also keep in mind is that even though an NFT project might do super well at first, the project could still close its doors, discontinue, or just lose the hype, and all the “profits” are lost in an instant.

Trading And Collecting NFTs

Trading and collecting rare or limited edition NFTs has also become popular among crypto enthusiasts. By trading between different exchanges or buying directly from creators who issue their NFTs through platforms like OpenSea, Mintable, or SuperRare, you can build up collections worth thousands of dollars over time.

CryptoPunks is an excellent example of a collection that was once sold for very little value but, over a long period, became super valuable. What should be remembered here is that not that many NFT collections gain the same type of price and overall appreciation as CryptoPunks or Bored Ape Yacht Club.

Earning Royalties From Your Own NFTs

If you create an original piece of artwork that gets sold in some NFT marketplace, you may be eligible (depending on whether you set up royalties) for royalties each time someone purchases.

Pretty much every NFT marketplace allows creators to set royalty rates when they upload their work, so they get paid every time someone buys one of their pieces – this is a great way for artists & musicians to make passive income.

The best part is that when you create the NFT, you are the one who decides the royalty percentage you want whenever the NFT is re-sold in the marketplace. OpenSea currently has a 10% royalty max in place, so you can’t get more than 10% for every NFT sold. Marketplaces like MagicEden, on the other hand, do not have such limits.

Become An Affiliate To An NFT Marketplace

Sorare affiliate program is only one of many NFT affiliate programs available.

Becoming an affiliate marketing partner is a great way to make extra money while promoting other people’s creations. All you need to do is sign up at platforms such as Coinbase and Sorare, where you will receive commission payments whenever someone uses your referral link when purchasing something off those sites.

NFTs are a great way to make money for creative people, graphic designers, digital artists, online business owners, and entrepreneurs.

NFTs offer a variety of ways to make money online, from creating and selling your own NFTs to investing in existing ones. You can also trade or collect rare NFTs for potential returns, as well as earn royalties when others purchase your original NFT, whether it’s digital art or a music piece.

Launch Your NFTs On Smaller Marketplaces

dappradar-smaller-nft-marketplaces-lower-competition-to-make-money-with-nfts

While OpenSea and Magic Eden seem the best place to launch your NFT collection or NFTs, don’t forget the competition. If you opt to launch on a smaller marketplace, you might have an easier time making money in it. Fewer users but also less competition. Ethereum is already filled with top-class blue-chip projects, and only more and more are published by the week.

Smaller marketplaces like Paras (NEAR blockchain), Gamma (Stacks), and Kalamint (Tezos) are only a few marketplaces that have significantly fewer users and sales volume but also the possibility of making your NFTs seen and sold.

Tips For Making Money With NFTs

Making money with NFTs can be a lucrative endeavor, but it’s important to understand the whole NFT market and how cryptocurrencies affect it. Researching the market before investing or selling your own NFTs is essential if you want to make a profit.

Research The Market Before Investing Or Selling Your Own NFTs

It’s important to research the current state of the market before investing in or selling any type of digital asset, including Non-Fungible Tokens (NFT). This includes understanding what types of NFTs are popular right now, which ones have the potential for growth in value over time, and how much they cost on average.

Also, look at the overall market trend of cryptocurrencies as they do affect the NFT market to some extent (sometimes more, sometimes less).

Don’t forget to also check the trendline of NFT marketplaces, as it will give you an idea of where the money is flowing currently. Is Magic Eden, Blur, or OpenSea holding the top spot regarding the trading volume and user growth?

There are always new NFT marketplaces popping up month after month, and the trading volume moves from one marketplace to another, so do keep your eye on it.

Research The Project

Before investing in an NFT project of any kind, read about their plans, whether they are something they can pull off or they are there just for an idea. Plans change (plans are not promises), projects can take a new direction, and projects can fail to deliver as circumstances change.

What type of community the project has, what is the size of the community, what is the project’s potential to succeed, and what is the roadmap? What kind of team is behind the project, an artist, a full team (marketing specialists, community moderators, project manager, etc.), or an anonymous or well-known (doxxed) team?

While everything might look good on paper, things change and evolve, and that is the risk of buying an NFT. You might win with it or lose a lot with it. It’s your responsibility to research the project and invest only what you can afford to lose.

Create Quality Content To Attract Buyers And Investors

Creating high-quality content in social media is key when it comes to attracting buyers and investors interested in purchasing or trading your NFTs. This could include creating artwork related to a specific theme or concept that resonates with people emotionally; producing videos showcasing an individual NFT; writing articles about why someone should invest in a particular NFT, etc.

Quality visual content has more appeal than generic (written even) material because it stands out from other offerings on the marketplace due to its uniqueness—which makes it easier for potential customers/investors to find what they’re looking for.

Use Social Media To Promote Your NFT Project

Leveraging social media platforms such as Twitter (CT, as in Crypto Twitter), YouTube, Reddit, etc., is another great way to get the word out about your NFTs while connecting directly with customers/investors simultaneously.

Engage with followers regularly via these channels by sharing updates about the latest project(s) you are in or working on and responding to comments and questions posted in the channels you are participating in.

Participate in conversations (Twitter spaces) and ultimately increase the visibility of your brand or the NFTs you are selling. Currently, NFT success is more or less built by active community management and posting high-quality content to Twitter, as it’s the main place where crypto talk happens.

Also, keep in mind that some social media platforms like Instagram or Tumblr might not be the best place to promote your NFTs, as currently, Twitter is the place where the crypto talk is happening.

Key Takeaway

Making money with NFTs requires research, quality content creation, and social media promotion.

  • Researching the market and project before investing or selling your own NFTs
  • Creating high-quality marketing content to attract buyers and investors
  • Utilizing social media platforms (the right ones) to promote your work

Risks With NFTs

NFTs, or non-fungible tokens, are digital assets that can be bought and sold on the blockchain. While they offer a unique opportunity to make money online, some risks involve investing in NFTs.

The Volatility Of The Crypto Market

The market for NFTs is still relatively new and unpredictable. Prices can fluctuate quickly due to speculation or lack of demand. This means that investors could potentially lose money if they don’t pay attention to market trends.

The cryptocurrency market has seen huge ups and huge downs, and while it could be thought that NFTs are not affected by the crypto market, they actually are. On some occasions, there has been a time when the crypto market as a whole has gone down in market valuation, but NFTs have seen increased demand.

What should be remembered is that while the NFT might grow in value, but at the same time, the underlying value of the token that was used to buy the NFT goes down in value, and there might not be any profit to be made.

If ETH (Ethereum cryptocurrency coin) goes down in value by approximately 10% and someone buys your NFT for a 10% higher price than what you paid for the NFT, you will lose money.

Example: (1 ETH = $100 (for the sake of simplicity))

  • You paid 1 ETH for the NFT
  • The value of ETH went down 10%; now ETH is valued at $90
  • You sell the NFT for 1.1 ETH (10% more than what you paid)
  • The NFT is worth 1.1 * $90; you get $99
  • You lost $1 (in this simple example)

The crypto market moves fast, and volatility is to be expected. That volatility also affects the price of NFTs. So keep your eye on the crypto market, as it will affect your profit margin.

Lack Of Regulation

Since the NFT industry is so new, it has yet to be regulated by any government body. This means that buyers have no protection from fraudulent activity such as price manipulation or false advertising. This same situation applies to the whole cryptocurrency market.

Risk Of Fraudulent Activity

As with any investment, there is always a risk of fraud when dealing with NFTs. Scammers may try to sell NFTs by manipulating the prices to make a profit off unsuspecting buyers. Investors need to do their research before buying into any project and only purchase from reputable sources such as established exchanges like OpenSea or Rarible.

There are many websites, etc., that sell NFTs, and those are riskier to buy from as the moment you connect your wallet to the site, your wallet’s funds can be drained.

To minimize the chances of losing money due to fraudulent activity or market volatility, you should research projects thoroughly before investing.

Making money with NFTs can be a risky endeavor, but understanding the risks and taking steps to protect yourself can help minimize them.

Conclusion

In conclusion, NFTs can be a great way to make money online, but there are huge risks involved that you need to take into account.

With NFTs, you can earn royalties or sell them for a profit if a project truly starts to fly to the moon. Though it is also important to sell before the rocket ship of hype explodes and gets back to earth. Do also understand the risks involved and do your research before investing in any type of cryptocurrency, whether it’s NFTs, coins, or tokens.

Market volatility is still a huge thing in crypto, and anything can happen to your NFTs and initial investment. Still, with the right knowledge and resources, you can make money with NFTs.

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Okuha

Digital Artist

I’m a digital artist who is passionate about anime and manga art. My true artist journey pretty much started with CTRL+Z. When I experienced that and the limitless color choices and the number of tools I could use with art software, I was sold. Drawing digital anime art is the thing that makes me happy among eating cheeseburgers in between veggie meals.

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