How to make Money with NFT? 5 Ways – Whimsy Games
In 2021, tens of new NFTs sprang up. This surge and interest in the NFT were primarily caused by the mind-blowing prices of the NFT sold. Transactions in NFTs went up significantly in summer 2021 with the rise of popularity of some tokens. And “how to make money with NFTs” was one of the most frequent queries in the search engine.
If you also want to know how to make money with NFT, you’re reading the right source. In this article, we’re shedding light on the opportunity you get owning an NFT, defining its market value, and explaining what steps you should take to trade NFTs on different marketplaces.
Is NFT a publicity stunt or a business opportunity that one cannot afford to miss? Let’s dig deeper to find answers to the fundamental questions and learn how to make money on NFT: from creating and trading tokens to NFT game development services.
The Value of NFT
We should note that NFT value can depend on two significant points: industry players and peculiar characteristics of a single non-fungible token.
To regard the NFT value from the viewpoint of industry players, we can set a question: “Who does an NFT belong to?”
An NFT can be owned by a creator, a buyer, and a collector.
- If you are a creator
A creator or an artist is a person who once came up with a striking idea and turned it into reality — be it a piece of music, digital art, text, or voice. And now this creation allows growing the value and making a profit from selling or auctioning it off.
Besides, it’s also possible for you as a creator to receive royalties even if the NFT doesn’t formally belong to you: every time it is sold or used in gaming, advertising, etc., and of course, when its recognition and popularity boost. Not all marketplaces follow this practice, but some of the most famous ones, like OpenSea, Rarible, and the Foundation will reward you with 5-10% royalties on average.
- If you are a buyer
Suppose you have a business and no artistic talent — no worries. You can make money from NFT too. First off, you should research the market and try to project which NFT artwork can bring you a fortune. Then you can invest in NFTs and generate a profit by selling them.
Otherwise, it’s always a good idea to support your favorite artists financially and buy their NFTs. In return, you’ll get some basic usage rights, for example, to publish an NFT online or use it for other different purposes. Plus, you can always boast that you possess a piece of art with a blockchain entry to back it up.
- If you’re a collector
If you decide to buy and hold NFTs hoping that one day their value will go up, you probably can call yourself a collector. You can also think of other ways of how to make money selling NFTs. For instance, you can exhibit your collection in the digital world for a small fee. It will let people enjoy these artworks, but you’ll be their only owner.
NFT’s Specific Characteristics
A bunch of specific characteristics makes an impact on the non-fungible token value. So what are they, and how to earn money with NFT? This formula will shed light on four main pillars of NFT value:
Value of NFT = Utility Value + Future Value + Ownership Value + Liquidity Value.
- Utility value
Utility value defines how to use the NFT. For instance, tickets and game assets hold high utility value. They allow people to get some new, interactive experience by visiting an event or using the same game asset in different games. For instance, owning a token of VeeFriends NFTs, you can get a real-life utility, be it a ticket to VeeCon or a dinner invite with Gary Vaynerchuck, a world-class entrepreneur and a marketing guru.
For game companies and large brands, utility value presents much room for improvement, though. NFT creators need an agreement with other game development companies ready to incorporate an NFT into their game ecosystem. Plus, they should run a stellar promotion campaign or show a use case to demonstrate NFT’s value and significance to people.
- Future value
This characteristic of the NFT value is derived from cash flow and valuation changes. Driven by some speculations on the market and interest in these assets, the valuation of NFT may rise and drop. To see how it works, let’s get back in time to December 2017, when the price of CryptoKitty #18 reached 253ETH from 9ETH in just three days.
The royalties or interests the former owner managed to make possessing this NFT may affect cash flow. Plus, NFT can become collateralized or leased assets that bring additional income. Game players can request a specific game asset for a limited time to complete a mission.
- Ownership value
The previous owner’s identity positively affects the NFT value in terms of the artist’s popularity or strong brand awareness. The key to success is an impactful individual or company. You should find a fit partner to create and efficiently monetize NFTs.
For instance, in July 2021, Coca-Cola together with 3D creators at Tafi released NFT collectibles to celebrate International Friendship Day. Collaborations of this kind put your NFTs forward on the market and bring traffic to your ecosystem.
- Liquidity value
The higher liquidity, the greater the value of NFT. Liquidity is pinpointed by the users’ willingness to buy and sell NFT. This factor also attracts investors. They opt for the NFT categories with a high trading volume, since liquidity lowers the risk of holding the NFTs. Therefore, even when the ecosystem where the NFT exists is closed, the NFT value may keep high due to the high demand among people who want to own a particular non-fungible token.
Overall, you may evaluate your NFT value based on utility, future, ownership, and liquidity. This analysis will give you a comprehensive picture that may impact your decision-making to buy or sell your non-fungible token in line with your goals and needs.
Let’s move on to find out how to make profit with NFT.
Five Ways to Make Money with NFT
When we talk about NFTs, we usually mean works valued at seven- to nine-figure prices. Of course, there are dozens of them, but let’s have a look at the most expensive NFT in different industries to understand how to make money with non-fungible tokens.
Officially, Beeple’s digital collage The First 5,000 Days is the most expensive NFT work ever. It was sold at Christie’s auction for $69 million.
Pixelated faces, known as Crypto Punk, comprise a series of randomly generated digital artworks with unique characters released on the Ethereum blockchain in 2017. Their prices range from $350,000 to $500,000, and especially high sales were tracked in August 2021. The most expensive Crypto Punk is evaluated at a whopping $11.8 million.
Thus, not only can artworks be tokenized and sold but coded as well. The source code for the World Wide Web written by its inventor Tim Berners-Lee was sold for $5.4 million at Sotheby’s. This NFT is an artistic representation of the source code — the system for navigating and accessing the information on the internet.
If you wish to see the same seven- to nine-figure price values on your credit card, here’s what you can do.
Create and Sell Your NFT
The digital wallet is the key thing if you want to start selling and buying. How to install it, create a digital wallet, upload your digital work and start actioning — we got down to all this nitty-gritty in our blog post “How to Create Your Own NFT: 5 Simple Steps.” It provides a step-by-step guide on how to make the process smooth and hassle-free.
You can trade NFTs at different marketplaces. There are four most popular platforms serving various purposes.
OpenSea operates on Ethereum and is considered the largest NFT marketplace. It had an all-time trading volume in 2021 that reached $10.3 million. Here, you can find a wide range of collectibles, be it a piece of music or artwork. Thus, all you need is to connect your MetaMAsk wallet and start trading. Plus, the platform allows users to exchange cryptocurrency for NFTs, and vice versa.
Rarible operates based on Ethereum. You can create, purchase, and sell the rights to digital artworks via non-fungible tokens on this platform. In addition, Rarible allows setting a commission or selling with fixed prices.
SuperRare is another digital art market on Ethereum for buying and selling digital artworks with Ether, a native cryptocurrency on Ethereum. Every piece of art is authentic and presented on the platform in a single tokenized copy. SuperRare resembles an online magazine and holds a curated selection of artists and brands.
How can you make money with NFT?
NFTs Artwork Selling
Different marketplaces provide numerous ways for making money with NFT.
You can sell your artwork at a fixed price. You decide the cost of your NFT and set this price, so the audience decides whether they can afford it or not. If you hesitate, start creating and selling your NFTs.
It shouldn’t have multimillion pricetags right from the start. Yet, you can earn money with NFT in the shortest time, just like Amrit Pal Singh, who earned over $1 million selling 57 non-fungible tokens of his artwork in about nine months.
Moreover, you can sell NFTs at the auctions. They are timed or unlimited. According to its name, a timed auction allows you to display your work for trading for a limited time.
Nonetheless, you can choose a specific date and time, as well as a period available for placing bids. It can last from a couple of hours to several weeks — up to you. You set the starting price and the minimum bid, so the system doesn’t accept an offer below this rate.
As for the unlimited auction, you can auction off your creation for as long as you wish and stop it at any moment. The only disadvantage is that you can’t set a fixed minimum bid. Yet, users can bid without limits.
Gaming is one of the most popular ways to make money. Primarily, game developers hold a promising, interactive experience for every user. An NFT may serve as a pleasant and lucrative bonus. Secondly, many companies invest in NFT game development to allow their users to monetize gameplay. Whimsy Games, for instance, can generate authentic custom tokens for a particular game.
If you ask yourself: “How do you make money with NFT?” the answer is here. You can buy and sell collectibles: armor, arms, coins, and other assets. Then, the money you make you can use to upgrade your character’s powers or move to a new level.
Plus, you can even set up your own NFT game development company to gain full control of your NFTs and make them a playable and fun thing to work with.
Along with the development of blockchain technology, we can observe the spike of NFT licensed collectibles. They are the next big thing that raises much craze. For many, card collections were a childish fetish, but now they have become a source of profit. Licensed collectibles are game cards, like the National Basketball Association(NBA), or other digital versions of popular characters and objects. These NFT collections allow you to own, trade, and buy items for interaction with your favorite brands.
Is NFT a Good Choice to Earn Money?
Definitely, yes. Here’s why NFT is worth investing in.
Blockchain is the future
Although this technology is new, it’s promising and will stay for many years. As statistics say, the Global Blockchain Market is expected to reach USD 34 billion by 2026, with a growth rate of 45%. The number of transactions will grow given the safety and transparency of blockchain technology.
Additionally, blockchain-verified data is secure and protected, so it takes less time to process transactions as malicious activities are minimized in this ecosystem.
More investment, more profit
You can allocate your budget to NFTs and buy the rage art pieces. Scrutinize the industry to get to know more about famous and talented artists. Also, you should be a step ahead and think about where you can use an NFT when you buy it. Pay attention to quality works, which fuel the public interest. Having them in your collection may turn into a lucky strike.
Blockchain lets you stay calm about ownership and copyright. When investing in NFT, you purchase original, one of a kind work. In addition, the technology allows tracking changes and the tiniest modifications and holding this data in the cloud. Thus, it minimizes counterfeiting and ensures that you pay for the artwork you need.
Non-fungible Source of Revenue
NFTs are building up a new reality with ample opportunities for creators and businesses. As Jesse Schwarz, who’s famous for buying an NFT of Lebron James, said: “People’s trust in blockchain has reached a mainstream level right now. This kind of product isn’t scaring people away. [. . .] Everyone will be on board eventually.”
You can also join the army of NFT owners. The fundamental knowledge on how to start in the NFT ecosystem and make money from NFT showcased in this article will help you go ahead with more confidence. If you still hesitate, you can find an expert like Whimsy Games, a trusted NFT game development company.
The Whimsy Games team is open to your ideas and can share their experience in this niche. You’ll receive a game designed from scratch with authentic NFT assets. So jump into the NFT ecosystem right away!