The Non-fungible Token (NFT) market continues to grow exponentially, especially in the last two years. In 2021, the market grew and surpassed $15 billion from a mere $160 million at the beginning of the year. With its growth, it has provided investors with many ways to earn from it. The market is beneficial to individuals and brands alike, with top companies and celebrities rallying to join in and share in the benefits of NFTs.
And while this market’s growth does not show signs of stopping, some people still are unsure how to get started or if they should get into NFTs at all. And this hesitation is valid. Not all NFTs have done well in the market, and you need to understand what you’re getting into before getting started. This article is a simple guide on the ways you can get started and make money with NFTs in 2022 and beyond.
Understanding NFTs and how to create them
NFTs simply mean physical or digital assets that can be interchanged or replaced with something else. They are a digital equivalent of an asset, with each asset generating its value from demand. They come as units of data stored in a blockchain that certifies an asset as original, unique, and consequently that you can’t replace with another asset.
You can create NFTs on various blockchain platforms, including Ethereum, Solana, Flow, and Binance, among others. You need to have a crypto wallet as NFT transactions are carried out through cryptocurrencies. Smart contracts enable transactions, and you can trade and exchange NFTs for fiat or cryptocurrency.
Making money with NFTs
There are various ways you can get into the NFT market and earn. However, you need to carry out research into the viability and suitability of each method for you. It’s also essential to note that all NFTs are not the same, and learning the market is crucial as you do with other types of investments. Here are practical ways to get started.
Evaluate and invest in promising NFTs
Making money in the NFT market begins with your choice. A good way is to look for and evaluate new collections that have the potential to grow in value. You can do this by looking at the following key indicators.
- Rarity: The uniqueness of an NFT is its core quality, and the law of supply and demand dictates the rarity of an asset. A creatively unique asset on demand can potentially attract high value quickly, making it an excellent way to evaluate an NFT.
- Utility: An NFT must have an actual application; without that, it won’t be helpful or attract any demand. Consider the utility strength of an asset before investing to ensure that it will attract high demand to build value.
- Community size: This generally refers to the market size of a particular NFT, and determines the number of potential buyers for that asset. A small community means low demand while a larger community creates high demand.
Consulting a reputable NFT company can help you learn all the key indicators that point to a promising NFT and when are the best times to invest. Notably, some best-selling NFTs started at low prices and grew into market-disrupting assets.
Creating and minting your own NFTs
One of the best and most common ways to make money with NFTs is by minting your own. This is the process of creating and putting digital assets on the blockchain, such as music, art, or collectibles. When this asset is minted on the blockchain, you can now trade it in the various NFT marketplaces, making money in the process.
Fortunately, NFT minting is a pretty straightforward process, and you can opt to build a marketplace for your asset or launch it on the existing ones. However, it’s good to note that the growth in the popularity of NFTs means that there is fierce competition among creators. Therefore, if you find this approach appealing, you need to find a way to ensure your creation stands out and beats the competition.
One of the smartest ways to invest in any market and make money easily is often through trading. The same case applies to the NFT market. You can choose to buy NFTs at lower prices and sell them higher, making profits in the process. But selling NFTs can be challenging, and you must know when to make a sale.
The best recommendation is, again, to pick your NFT collection wisely to ensure they have a good enough community behind them or have the potential to grow. This ensures that you’re buying a collection that generates interest and can quickly sell in marketplaces when needed.
Keep in mind that some NFTs are worth millions while others fail to attract any demand at all in the market. Always do your research thoroughly and wisely to ensure that you only take on the collections that can make good sales in the future. Choosing and sticking to a specific niche such as NFT clothing or fashion would also be wise.
As you can see, there are various ways you can earn from the NFT market and share in the gains most people have already experienced. However, you may need to consult with blockchain and NFT experts before getting started to ensure you stay on track and avoid making losses. With the NFT market not showing any signs of slowing down, there’s still a chance for you to get in and earn.