It’s become common to hear success stories involving non-fungible tokens (NFTs). Take Nyla Hayes for example. The teenager became a multimillionaire by selling her artwork as NFTs. The collection – known as Long Neckies – features drawings of women who have elongated necks.
What is the secret to success with NFTs? Is it a matter of luck, such as buying an inexpensive cryptocurrency that skyrockets in value? Or does it require careful planning and a good strategy?
The truth is there is no secret. But if you want to make money with NFTs, here are three methods that might lead to success.
1. Income from Royalties
Perhaps you listed your NFTs on an NFT marketplace but made very little money. That’s not the end of your journey because you earn royalties from the NFTs that you sold.
Earning royalties means you receive a portion of the purchase price each time your NFT is resold. For example, the marketplace might offer a 10% royalty each time one of your NFTs is resold. That means you’ll receive a 10% commission – no matter how many times the artwork is resold.
2. Buy and Sell NFTs
NFT collectors often buy and sell NFT artwork. The key is to buy low and sell high – just like in the stock market.
Say that you purchase a popular NFT for 2ETH – which is around $6,000. And two weeks later the value of the NFT jumps to 4ETH – which is around $12,000. Selling the NFT will earn you a significant profit.
However, buying and selling NFTs isn’t a guaranteed road to riches. You could possibly buy an unpopular NFT that never increases in value. This is why it’s important to do your research before making a purchase.
3. Buy and Rent NFTs
NFT games like Splinterlands are becoming more popular. Splinterlands is an online game that uses sets of cards. The cards are NFTs that players can purchase or rent. When you own cards, you can rent them to other players on the Splinterlands marketplace.
Buying and renting out your cards is a source of passive income. Some players want to play the game without spending money buying cards. And some players rent cards to see if they like them enough to buy them. This is how you can make money by renting out your cards.
The marketplace handles the rental agreement and payments. It’s truly a form of passive income. All you have to do is list your NFTs and set your price.
NFTs and Income Possibilities
If you’re interested in earning money with NFTs, now is a good time to get started.
Just remember to do your research and learn about NFTs and cryptocurrency. Learning about cryptocurrency is important because that’s how you’ll get paid and how you’ll pay for most purchases.
Not all NFT marketplaces or games accept the same type of digital currency. You’ll likely deal in several different digital currencies – depending on how many different platforms you use.
Nikhil Kore