22:34 | 03/04/2022 Print
|How To Earn Money With NFT Quickly|
|Table of Content|
So, you’ve heard of NFTs and how some people have made money on them. NFTs are the latest cryptocurrency sensation to go mainstream. If you’re an entrepreneur or small business that creates some form of digital content, it makes sense for you to learn the ropes of making money through NFTs.
Charmin, the American toilet paper brand, posted several toilet paper NFTs on Rarible, an NFT marketplace. The highest bidder offered more than $2000 for one of the arts in the same month.
Taco Bell, the fast-food chain, also sold its entire ‘Transformative Taco’ NFT collection on Rarible within half an hour.
With other big brands like Asics, Adidas, Team GB, Coca-Cola, and Nike having dived into the NFT space, knowing how to make an NFT is becoming a necessity rather than a nice-to-have for the modern business.
|Photo: Business Insider|
An NFT is a digital asset that represents real-world objects like art, music, in-game items and videos. They are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptos.
Although they’ve been around since 2014, NFTs are gaining notoriety now because they are becoming an increasingly popular way to buy and sell digital artwork. A staggering $174 million has been spent on NFTs since November 2017.
NFTs are also generally one of a kind, or at least one of a very limited run, and have unique identifying codes. “Essentially, NFTs create digital scarcity,” says Arry Yu, chair of the Washington Technology Industry Association Cascadia Blockchain Council and managing director of Yellow Umbrella Ventures.
This stands in stark contrast to most digital creations, which are almost always infinite in supply. Hypothetically, cutting off the supply should raise the value of a given asset, assuming it’s in demand.
But many NFTs, at least in these early days, have been digital creations that already exist in some form elsewhere, like iconic video clips from NBA games or securitized versions of digital art that’s already floating around on Instagram.
For instance, famous digital artist Mike Winklemann, better known as “Beeple” crafted a composite of 5,000 daily drawings to create perhaps the most famous NFT of the moment, “EVERYDAYS: The First 5000 Days,” which sold at Christie’s for a record-breaking $69.3 million.
Anyone can view the individual images—or even the entire collage of images online for free. So why are people willing to spend millions on something they could easily screenshot or download?
Because an NFT allows the buyer to own the original item. Not only that, it contains built-in authentication, which serves as proof of ownership. Collectors value those “digital bragging rights” almost more than the item itself.
NFTs exist on a blockchain, which is a distributed public ledger that records transactions. You’re probably most familiar with blockchain as the underlying process that makes cryptocurrencies possible.
Specifically, NFTs are typically held on the Ethereum blockchain, although other blockchains support them as well.
An NFT is created, or “minted” from digital objects that represent both tangible and intangible items, including:
• Videos and sports highlights
• Virtual avatars and video game skins
• Designer sneakers
Even tweets count. Twitter co-founder Jack Dorsey sold his first ever tweet as an NFT for more than $2.9 million.
Essentially, NFTs are like physical collector’s items, only digital. So instead of getting an actual oil painting to hang on the wall, the buyer gets a digital file instead.
They also get exclusive ownership rights. That’s right: NFTs can have only one owner at a time. NFTs’ unique data makes it easy to verify their ownership and transfer tokens between owners. The owner or creator can also store specific information inside them. For instance, artists can sign their artwork by including their signature in an NFT’s metadata.
|Photo: Information Age|
Blockchain technology and NFTs afford artists and content creators a unique opportunity to monetize their wares. For example, artists no longer have to rely on galleries or auction houses to sell their art. Instead, the artist can sell it directly to the consumer as an NFT, which also lets them keep more of the profits. In addition, artists can program in royalties so they’ll receive a percentage of sales whenever their art is sold to a new owner. This is an attractive feature as artists generally do not receive future proceeds after their art is first sold.
Art isn’t the only way to make money with NFTs. Brands like Charmin and Taco Bell have auctioned off themed NFT art to raise funds for charity. Charmin dubbed its offering “NFTP” (non-fungible toilet paper), and Taco Bell’s NFT art sold out in minutes, with the highest bids coming in at 1.5 wrapped ether (WETH)—equal to $3,723.83 at time of writing.
Nyan Cat, a 2011-era GIF of a cat with a pop-tart body, sold for nearly $600,000 in February. And NBA Top Shot generated more than $500 million in sales as of late March. A single LeBron James highlight NFT fetched more than $200,000.
Even celebrities like Snoop Dogg and Lindsay Lohan are jumping on the NFT bandwagon, releasing unique memories, artwork and moments as securitized NFTs.
You don’t need extensive crypto knowledge. Here’s how to create NFT art:
1. Decide what you want to create and your business goal
If you don’t know where to start, you can begin by creating an NFT loyalty card or even a promotional code for your customers. You can also borrow a few NFT art ideas for inspiration.
Focus on providing real benefits to your audience. A good example is giving those who own your NFT access rights to an exclusive club or a premium service.
If you can’t make your own art, hire a freelancer to create a piece of art for you.
2. Choose a blockchain for your NFT
The most common Blockchain for NFTs is Ethereum. Other popular blockchains that hold NFTs are Binance Smart Chain, Tron, Tezos, Polkadot, EOS, Litecoin, and Cosmos.
Some factors to consider before choosing a blockchain are:
3. Sign up for a crypto wallet
Each blockchain comes with a different NFT token standard which determines which wallet will be compatible. The Ethereum NFT token standard is ETH-721, while Binance Smart Chain’s is BEP-721.
With ETH-721, you can sign up for several wallets, including Coinbase, MetaMask, and Trust Wallets. For Binance Smart Chain, you can use wallets such as MetaMask and Binance Chain Wallet.
4. Top up your crypto wallet
When you’re creating an NFT, you may have to pay transaction fees, commonly known as ‘gas’ on the Ethereum blockchain. Load your wallet with supported crypto to cover these fees.
If you are using the Coinbase wallet, you can buy crypto on Coinbase. Otherwise, purchase crypto on exchange platforms such as Binance.US, Kraken, and Gemini.
At OpenSea, one of the biggest NFT marketplaces, you’ll pay one-time registration and contract approval fees. The platform doesn’t charge you to create an NFT collection and list it for sale.
Transaction costs will depend on your NFT blockchain. Fees on the Ethereum blockchain are usually high due to the number of people making transactions. Transact during weekends or choose a less-congested blockchain like Polkadot to save on gas.
5. Choose an appropriate NFT marketplace
There are various marketplaces where you can upload your art and create an NFT.
Polkadot, for instance, powers the Xeno NFT hub marketplace.
Tezos works on different marketplaces, including Rarible, Bazaar market, and OneOf.
Ethereum NFT marketplaces include OpenSea, Mintable, and Rarible.
6.Connect your wallet on your NFT marketplace and upload your art
|Photo: Stock Investing Academy|
NFTs are generally sold on marketplaces with different processes depending on the platform of your choice. Essentially, you’ll upload your content to the marketplace, turn it into NFT, and wait for it to sell. It’s very similar to Amazon or Etsy. If you already have a digital content portfolio for which you own the copyright, here’s what you need to do next:
How to make money with NFT is easy. Smart NFT creators and entrepreneurs can succeed in the NFT marketplace by first trying to research and understand as much they can about NFTs. They should understand how the digital asset market operates, its volatility, and which digital artworks be they songs, GIFs, videos, or video game collectibles would fetch a great price.
To start trading in NFTs you will need to purchase some cryptocurrency such as Bitcoin, Ethereum, and Dogecoin as a medium of exchange. This is because most NFTs marketplaces require you to open a crypto wallet. Most NFT platforms will require you to pay upfront in cryptocurrency to start minting NFTs- which entails turning your artwork into a non-fungible token that you can later be able to sell.
Not all NFT platforms are the same, some let you mint your free cryptocurrency while other marketplaces offer a large NFT marketplace for trading. Some popular NFT platforms include OpenSea, Rarible, Axie Marketplace are NBA Top Shot Marketplace.
Once you’ve settled on the NFT marketplace suitable you will need to link it to your funded cryptocurrency wallet. You will need a digital wallet to create NFTs and pay transaction fees in the form of ‘gas’ which essentially is the computation power you use to mint or generate your NFT.
By opening your digital wallet then you have accomplished the major steps towards turning your digital assets into a money-making enterprise. You can then convert your digital file into an NFT art or buy your first NFT.
Once you have converted your digital assets into NFTs you will be presented with the option to list them up for sale on the several available NFT marketplaces. You can use marketplaces like Ethereum blockchain, OpenSea, Rarible, or Axie Marketplace.
Once you have selected your NFT marketplace of choice you will be allowed to sell your NFT art. At this stage, you will be able to provide potential buyers with details on how to make transactions that include the selling price of the NFT, set timed auction, and the cryptocurrencies you want to be used in the transaction which NFT buyers can use to pay you. The NFT marketplace for its part will calculate the commission fees for handling the sale which may vary depending on the particular NFT marketplace.
Most NFT listing fees have a concept called gas. which is required to successfully conduct your transaction. In the case of the Ethereum blockchain, the fee goes directly to Ethereum miners who provide the computing power required to verify transactions and keep the network running. Each transaction requires a certain amount of gas depending on the number and type of computations involved and the storage required.
Blockchain transaction fees vary depending on the network’s supply and demand. During high resource demand periods, gas fees could rise. In addition, cryptocurrency prices are subject to volatility impacting the costs associated with NFTs. In most cases the price associated with selling NFTs will depend on the required resources to mint NFTs prices may range from $1 to $500, or even go higher.
If you really want to succeed in making some extra income through selling NFTs. You will need to constantly grow your portfolio of NFT collection. Once you created a good amount of NFTs you will need to promote your work so that you can reach a healthy amount of fans and potential buyers. Use social media such as Facebook, Twitter, and Instagram to promote your work.
Yes, you can. This is the second option to making money with NFT. Selling NFTs isn’t just for creators. Some entrepreneurs and investors utilize NFTs like stocks and profit by buying and selling them. If you have already purchased a collection of NFTs and don’t need them anymore, you can easily sell them the same way you would if you were to create them yourself. The only step you’ll skip is the minting process.
The trick to trading NFTs is when to sell them. The right time to sell an NFT will depend on what it is, why you bought it, and if there’s any other interest in the item. Quick research on the internet and marketplace can help you determine this.
You’ll also have to factor in price appreciation or depreciation. Calculate your potential profit and loss by including additional costs like gas fees, marketplace listing fees, and royalties paid to the original owner. These fees will ultimately reduce your final take-home amount.
Once you’ve got your wallet set up and funded, there’s no shortage of NFT sites to shop. Currently, the largest NFT marketplaces are:
• OpenSea.io: This peer-to-peer platform bills itself a purveyor of “rare digital items and collectibles.” To get started, all you need to do is create an account to browse NFT collections. You can also sort pieces by sales volume to discover new artists.
• Rarible: Similar to OpenSea, Rarible is a democratic, open marketplace that allows artists and creators to issue and sell NFTs. RARI tokens issued on the platform enable holders to weigh in on features like fees and community rules.
• Foundation: Here, artists must receive “upvotes” or an invitation from fellow creators to post their art. The community’s exclusivity and cost of entry—artists must also purchase “gas” to mint NFTs—means it may boast higher-caliber artwork. For instance, Nyan Cat creator Chris Torres sold the NFT on the Foundation platform. It may also mean higher prices — not necessarily a bad thing for artists and collectors seeking to capitalize, assuming the demand for NFTs remains at current levels, or even increases over time.
Although these platforms and others are host to thousands of NFT creators and collectors, be sure you do your research carefully before buying. Some artists have fallen victim to impersonators who have listed and sold their work without their permission.
In addition, the verification processes for creators and NFT listings aren’t consistent across platforms — some are more stringent than others. OpenSea and Rarible, for example, do not require owner verification for NFT listings. Buyer protections appear to be sparse at best, so when shopping for NFTs, it may be best to keep the old adage “caveat emptor” (let the buyer beware) in mind.
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