How to make money on NFTs in 2022
In the crypto world, Non-Fungible Tokens are the new “genie.” They are fungible, decentralized tokens that can be used to digitally represent an asset or an idea. These are non-physical tokens that cannot be reproduced. When it comes to earning money with modern technology, there are numerous options.
In this article, we will go over how to earn money with NFTs in depth, highlighting the most profitable strategies before showing you which trading platform are now the best for investing in NFTs.
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5 ways to make money on NFTs
Because of the expansion of the NFT business, there are a variety of ways to earn from NFTs, whether actively or passively.
With that in mind, let’s dig in and look at how to earn from NFT tokens by going over the most profitable strategies:
1. Minting Your Own NFTs
Minting your own NFTs is the most popular strategy for individuals who are looking for the way to make money on NFTs. The progress of putting a digital asset (such as digital art or music) on the blockchain is known as minting. After the asset is minted on the blockchain, it would be traded on NFT exchanges, allowing you to profit from your work.
Minting NFTs is a pretty simple operation, and leading markets such as NFT LaunchPad make it simple for newbies. Because of the explosive growth of the NFT business, there is fierce competition among creators, with new collections appearing every day. As a result, if you want to use this route, you’ll need to make sure your project stands out.
2. Be an early investor
Investing in potential new collections early, before they soar in value, is one of the best ways to make money on an NFT. Many of the greatest NFTs to buy were initially released at a low price, but their value skyrocketed in the weeks and months following their release.
CryptoPunks, for example, maybe acquired for anywhere from $1 and $34 in 2017. Due to their first-mover status within the area, these ‘Punks’ became extremely valuable when the NFT frenzy took over in 2021. This resulted in celebrities and other high-profile individuals purchasing these NFTs, with one Punk selling for $24 million!
3. NFT HODLing
When looking for ways to generate money with an NFT, one of the finest tactics is to invest and ‘HODL.’ In the context of buying and holding Bitcoin and other cryptocurrencies, HODL is a phrase created from a misspelling of “hold.” Among crypto investors, it’s also come to mean “hold on dear life.”
Those considering purchasing cryptocurrencies should be aware that there are advantages and disadvantages to doing so. HODLing, on the other hand, can be a terrific strategy to generate money with NFTs if done strategically. Returning to our CryptoPunks scenario, investors in 2017 may have decided to sell because the value of their Punk had decreased.
The best way to store your NFTs while hodling is using a cold storage hardware wallet. Since the wallet remains offline, hackers and keyloggers will be unable to acquire access. For enhanced security, each hardware wallet comes with an ID and password.
4. Flipping NFTs
Flipping your NFTs, on the other hand, contrasts with holding NFTs. Flipping is a financial term that means buying low and selling high, which similar to trading.
You can only flip valuable items, and NFTs have shown to be valuable, drawing a wide range of investors quickly. Aside from owning Bitcoin and altcoins for the long term or making and collecting tokenized art, you could choose to invest in high-volume NFT initiatives for faster profits.
Although riskly, flipping NFTs is a quick way to increase your portfolio. Remmember, efore you start flipping NFTs, you need to figure out which ones are worth your time.
5. Play-to-Earn (P2E) NFT Games
Last but not least, Play-to-Earn NFT games are a method to help you earn money on NFTs. Many of the best NFT games now employ P2E features, which allow players to generate rewards through skilled gameplay. These rewards are usually denominated in the platform’s native token — meaning they can be spent on in-game items or exchanged for FIAT.
Using NFT games to make money has become a popular approach, with numerous exciting platforms springing up that offer a way to generate consistent income. Among them, Axie Infinity is one of the most prominent since users can ‘battle’ other users and earn rewards. In addition, since most important in-game items are structured as NFTs, the digital currency earned as rewards can be ‘reinvested’ into better items — leading to increased performance.
Where to buy NFTs
Now that you have a thorough grasp of how to profitably acquire and sell NFTs, let’s look at the investment process itself. If you’re wanting to invest in fresh NFT projects for flipping or just want to buy an NFT and HODL, finding a safe and trustworthy marketplace is critical.
With that in mind, we recommend Elemint as an NFT exchange platform for the future.
For creators, our Elemint NFT solution includes a supporting system for artists & brands to turn their works into NFTs, a state-of-the-art system of asset custody, and cost-effective minting methods so you can launch your projects with ease.
For collectors, we aim to utilize our expertise with blockchain technology, user experience design, competitive fee structure, and innovative minting methods to help you purchase and trade NFTs seamlessly without worrying about gas fees, and knowing that all of your assets are well-protected.