How to earn money with Non-Fungible Tokens?

NFT, or non-fungible tokens, is the most important investment topic in blockchain technology right now. The trend of digital collectible tokens has already hit the headlines. People’s interest is also fueled by celebrities, headed by Elon Musk, who adds steam on social media.

How to earn money on NFT knowing that the topic has the potential to revolutionize the collecting, art and gaming industry? One thing is for sure, you have to hurry. Many people research the topic intensively and develop their skills in the newly emerging industry.

What exactly is NFT?

NFT are non-convertible tokens. What can’t they be exchanged for? For other tokens alike, because they are inherently unique. NFT are like files stored in a blockchain. Until now, we have mainly dealt with tokens that were fungible.

For example, 1 ETH could be exchanged with another 1 ETH, still retaining the properties and value of the previous one. If you bought 1 ETH, sold it and then bought it back, you still have one ETH unit, even though your “new” ETH may be from a different block and have a different history. With non-fungible tokens, this won’t work anymore because there is only the first, unique one.

An important aspect is that we are still operating in the “permissionless” mode. This means that anyone can create an NFT. You can make it with Banksy’s work today (although you probably won’t hold any rights to the artwork, though). It depends on the market which NFT will be priced adequately to the “proof of work” connected to it.

How will NFT change the world?

As with the general revolution that blockchain is bringing, unforgeable tokens will change many industries. The most important consequence of the thriving of this innovation will be connecting artists directly to fans and buyers of art.

Currently, there are many intermediaries between the artist and their followers. The chain means that artists receive less money for their work, and buyers pay higher prices. The NFT has a chance to change this by introducing transparency, accessibility and creating a new, democratized market.

For collectors, this means experiencing art along with the ability to purchase digital ownership attribution. Then it will be announced on the Internet (also in ways that are still being developed) that this person is the owner of this particular work.

What does it mean for artists such as photographers, graphic designers, painters, video makers, or even creators of a new category, such as virtual world designers or influencers? A great new outlet for their creation.

Moreover, the NFT value appears to correlate with the number of shares, likes, views, and other social proof of value. It is probably an ideal representation of values ​​in social media and a global, connected world where viral content rules.

How do NFTs work?

It simply is a blockchain record that we control with a private key. Due to the high cost of placing such records, it is most often a hash that leads to another place on the network. It is often a link to a file or smart contract.

An example of a place to store files in the blockchain technology is the ArWeave. There are also other projects or methods for saving files permanently.

How to sell and buy NFTs?

How to invest in NFTs?

There are several options for taking your place in the race for profits in this innovative industry. Let’s check them one by one:

  • purchase of a cryptocurrency closely related to the token creation technology,
  • simply purchase some digital artwork or its representation,
  • creating art, converting it to NFT and selling it,
  • creation of the non-fungible token and its sale,
  • construction of a technological solution or application related to NFT,
  • participation in a project based on this innovation, especially in the gaming industry.

As you can see, there are many options. Let’s start with the simplest one, i.e. buying and holding an N-FT-related cryptocurrency.

What cryptocurrencies are related to the NFTs?

Dedicated cryptocurrencies are the already mentioned by us ENJIN, Decentraland and their MANA. New projects, the ALICE gaming project recently issued on Binance.

Other projects by capitalization include Flow, Sand, WAX and Axie. Which one is worth your attention?

It’s worth starting with their financial results. The NFT market related tokens have experienced similar price increases to the broad cryptocurrency market. This means that the prices are many times higher than a year ago. In the long term, it may make sense to make a small purchase, but a sane trader will wait for a bigger correction.

How and where to buy Non-Fungible Tokens?

If you believe that buying NFT is the best way to invest, it is worth targeting the largest token exchanges. The largest are OpenSea and Rarible.

OpenSea

OpenSea.io is the largest marketplace where you can buy and sell NFT. Currently, the largest website where you can buy various types of tokens.

Arts NFTs so far is dominated by CryptoPunks and other “unique” graphics, gifs and animations. However, you can also get tokens from Beeple Special Edition, the rival Rarible exchange, and various groups that select the best tokens with the greatest potential.

The crypto internet domains for sale are ENS (Ethereum Name Services). There are also domains from Unstoppable Domains and unique names with great potential from Decentraland.

Virtual worlds are markets not only for items and collections, but also for virtual real estate. The aforementioned Decentraland is the largest market, but there is also The Sandbox and smaller projects like Mega Crypto Polis and CryptoVoxels.

NFT trading cards have a large section of their own. There are no famous series like Magic The Gathering out there yet. Card game fans will find many interesting offers there. Recently, the Binance exchange and its service have signaled that they want a share in this market.

Collector’s NFT is probably the most interesting section. There you can find various gifs, animations, images or links to unique content.

NFT-based computer games are a blast, completely omitted in the mainstream media. The most popular AlienWorlds, Koloboks, Upland and its virtual real estate are just the beginning of the list, which also includes the mentioned Decentraland. Subsequent projects arise like mushrooms after rain. Check out our long summary with lots of ideas on how to make money playing computer games.

The collector’s NFT sports cannons are also included. The biggest project is Sorare, which is a soccer manager where you earn real money. Among them, the most popular are the NBA dunks already known from the press, American Football, Formula 1 and many other disciplines. Recently, collector cards with NFT players from Binance have come to them.

Finally, Utilities, which is probably everything else that does not fit into the previous categories.

There is also a technical aspect. You can use DeFi service, Uniswap and locate liquidity there. Your financial position will be represented as NFT.

Is the market at a stage where everyone can find something for themselves? Probably not yet, but the number of NFTs exhibited at OpenSea is growing day by day. So is the sales volume and the amount of cryptocurrencies that change hands.

NFT Rarible

Rarible is the second largest NFT exchange. It houses a multitude of works of modern art. Well, and even more creations of computer graphics and people who just created their NFT. Sifting valuable items with the potential for increasing value may seem like a Sisyphean job, but remember that we are in the industry very early.

What distinguishes the Rarible exchange from the competition is the RARI token, which is used to manage the platform (probably like tokens managing DeFi protocols). How to get it? Apart from other scenarios, it is received by everyone who trades on the exchange.

Making NFT is not as difficult as it seems. It is harder to have a really creative idea first.

How to make a NFT?

Do you think that creating an NFT and selling it is the best way to earn? So let’s check how to make an NFT for free. First, let’s choose a platform. Currently, the creation of NFT tokens supports several of the largest cryptocurrency projects.

  • Ethereum and ERC-721 and ERC1155 standards
  • Binance Smart Chain and the BEP-712 and BEP-1155 standards
  • Kusama + Polkadot and their KodaDot environments
  • Solana and it’s standard

What factors do you need to consider? High charges for using the network seem to be the most important at present. There is no point in creating a series of cheap NFTs if the fee for a smart contract in Ethereum generating one NFT is several hundred dollars. This situation works to the advantage of Binance Smart Chain and KodaDot. OpenSea also has a solution here, as the NFT is only generated during the sale.

The size of the market is also important as it will help you find a buyer quickly. It is worth remembering that the NFT must be stored somewhere. We must take into account the availability of wallets and the ease of their use by potential recipients.

If you want to know more about how to make your own NFT to BSC check out this article first.

I’m an artist. How to transform a creative work into an NFT?

If you are an artist and already know about NFT, you have a huge advantage over many others. How to use it? The easiest way to transform your work into a form that can be published on the most popular NFT exchanges: OpenSea or Rarible.

Are Non-fungible Tokens worth investing in?

Non-fungible tokens are the future of digital distribution of unique items. One of the scenarios that will accelerate adaptation and expand the market by billions of potential customers is development of “the economy of experience“.

Anyone who is able to provide customers with a unique experience will win. Regardless of whether it will be something from a virtual world that more and more closely intertwines with the “real” or providing confirmation of high social status resulting from having a prestigious item. There will be applications that will operate in billion-dollar markets, which are currently being designed, created and will grow rapidly.

You can take part in this revolution from the technological side and, as an entrepreneur, make a contribution to development. Also, you can claim unique NFTs early enough and enjoy seeing their value goes up.

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