FinTech and Banking

How to Make Money with NFTs Part-01

27 April 2022

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3 min read

Buy and sell NFTs

Because an NFT’s value isn’t static, you can earn by buying an NFT and selling it for profit when it appreciates. Flipping NFTs is a common earning method: Buy low, sell high. A close eye on the market, access to exclusive NFT drops and scooping out rare NFTs increases your odds of earning a profit. This can include following NFT marketplaces on social media, joining Discord servers for upcoming projects and staying up to date on trends.

What you need: A crypto wallet, an account with an NFT marketplace/s and cryptocurrency. May require a large investment up front if you intend on collecting valuable NFTs to sell later.

How to start: Once you’ve done your research, log into the marketplace of your choice, connect your wallet and purchase an NFT in a collection. Most NFTs are bought with Ethereum (ETH), but some marketplaces allow for NFTs to be purchased with fiat currencies. List the NFT for sale as the collection’s value peaks on a secondary marketplace.

How much can I make? It’s difficult to estimate how much you can earn from flipping NFTs, since values fluctuate by the second. However, paying attention to trends, following NFT creators on social media and participating in exclusive NFT drops to obtain rare NFTs may help increase your chances of earning.

Invest and rent out NFTs

Renting out NFTs is referred to as scholarships. This tactic is popular with gaming NFTs, where users rent out valuable NFT characters or items to players and earn a cut of the profits earned. People may also rent an NFT to use as a profile picture or to enter an exclusive event in a metaverse or blockchain game. And, if you own an NFT parcel in a virtual reality metaverse, such as Decentraland, you could rent out your land for events.

Create NFTs and earn royalties

NFTs have smart contracts that are built into blockchains. These contracts allow for the original creator of an NFT to automatically earn a percentage of the NFT’s price on subsequent sales in perpetuity. The ownership history and smart contract on an NFT can never be altered.

P2E games

A crypto play-to-earn (P2E) game allows players to earn cryptocurrency or NFTs by playing the game. How you earn in a P2E game depends on the game, and getting started often requires an initial investment — buying the NFTs required to play.

NFT Staking

Staking is when you lock up your token or coin for a set amount of time — called a vesting period — in a staking pool, in exchange for rewards or interest every cycle. When you stake an NFT you’re investing in a project for possible reward

Staking an NFT means you can withdraw only once the vesting period is up — if you withdraw early, you miss out on rewards. However, while it’s locked, you still maintain ownership.

The locked assets help with a blockchain’s consensus mechanism. In return, the owners of the tokens earn rewards, which vary.

A pool is a collection of assets that are secured by a smart contract. Rewards from the pool can be divided between the participants, managed by a blockchain. Users add their tokens to the pool for a chance to add a new block to the blockchain for rewards.

Staking is a passive earning and long-term strategy. It’s similar to placing assets in a savings account and earning interest. However, if the value of the staked assets depreciates, the earned interest may not outweigh the loss. The rewards you can earn vary by project.

Before staking, read the blockchain game or platform’s rules and lock cycles, as they widely vary. Platforms that support staking may also have staking guidelines and how-to’s on their site or Discord server.

What you need: Crypto wallet, NFT to stake and a platform that allows you to stake.

How to start: Staking NFTs is primarily done in play-to-earn games at the time of writing, often called “farming.”

How much can I make? The platform you use largely determines the amount you earn from stking. It’s often expressed as a percentage per cycle, like an annual percentage yield (APY). You may earn anywhere between 5% to 20% APY, depending on the pool. In some cases, you may be compensated with exclusive access to airdrops or in-game rewards.

NFT liquidity pool

A liquidity pool is a collection of coins or tokens that are locked in by a smart contract that controls the exchange and price. It’s a pool of paired crypto assets that lets users swap assets for the other without needing a market order trade. Users pool the paired assets together so they’re available to swap.

Users that invest the paired tokens are called liquidity providers (LPs). LPs can participate in decision-making protocol, using their tokens to vote.The funds in these pools can be used for NFT trading and crypto lending. LPs can earn from yield farming (lending assets to earn rewards), and liquidity mining (lending or staking and earning rewards in the form of transaction fees). Earnings stay in the pool, which allow them to compound.

Putting your assets in a liquidity pool can earn rewards, though it’s not entirely risk-free. There’s a chance you could lose money if assets in the pool yield less income than holding the assets normally, this is called impermanent loss.

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Comments (3)

Ralph Edwards

December 2, 2021

The staff at Cushman & Wakefield come from unusually diverse demographic backgrounds. The company is 42.3% female and 42.4% ethnic minorities. The diversity in Cushman & Wakefield employees extends to employee political beliefs. Its employees are politically diverse and represent a balanced blend of political orientations, with 49.5% Democrats and 49.5% Republicans. Despite their political differences, employees at Cushman & Wakefield seem to be happy.

Savannah Nguyen

December 2, 2021

The diversity in Cushman & Wakefield employees extends to employee political beliefs. Its employees are politically diverse and represent a balanced blend of political orientations, with 49.5% Democrats and 49.5% Republicans. Despite their political differences, employees at Cushman & Wakefield seem to be happy.

Robert Fox

December 2, 2021

The staff at Cushman & Wakefield come from unusually diverse demographic backgrounds. The company is 42.3% female and 42.4% ethnic minorities. The diversity in Cushman & Wakefield employees extends to employee political beliefs. Its employees are politically diverse and represent a balanced blend of political orientations, with 49.5% Democrats and 49.5% Republicans. Despite their political differences, employees at Cushman & Wakefield seem to be happy.

Comments (3)

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