What is NFT & How to Make Money With it!
Fantastic NFTs and how to monetize them?
Everyone is talking about NFTs and minting them. However, where did these NFTs come from?
NFT is blockchain technology’s baby. And as you have heard, these are ‘unique’ to its kind, non-fungible tokens that can’t be replaced. NFT can be anything from an art piece on the internet to an element in a game. If it is built using blockchain technology, it can be called an NFT.
The value of each NFT is given by the owner, who has full control to either sell it or showcase it. The value of the NFT is also decided by the creator. If someone copies an NFT, they will only have what you call a ‘photograph’ of a painting, while the original exists with the owner.
These NFTs can be transferred and traded like any other asset on the market. Although, stocks and commodities are divisible and tradable unlimited times, whereas NFTs only once.
Types of NFTs
Artists Beeple and Pak’s NFTs have been sold for over $50 million dollars. Why?
Art NFTs are unique and one-of-a-kind digital art. They have potential to be linked to the metaverse and can be displayed in art spaces where people from all over the world can experience the beauty of the piece. These NFTs are also becoming a part of the economic bubble. This means that the asset was created to be sold and resold in the first place, increasing the price of the overall asset from when it was first created. This bubble usually occurs when a new technology appears in the market and everyone is trying to get a piece of it.
Meme NFTs are re-created digital blockchain technology versions of already trending or famous memes. These are mostly created with the permission of the person associated in the meme, if any. Even though the original memes weren’t worth much when they were designed in the form of NFT, their value keeps rising in cyrptocurrency.
Disaster girl meme NFT got sold for about $5000,000 in Ethereum. The success kid meme was sold for $15 which later was worth approximately $32,355.
Domain NFTs are blockchain domains. Earlier in web 2.0, the domain names were centralized and the data was owned by the domain providers. Now in the new Web 3.0, anyone can register a domain with .crypto or .nft and get a higher price for it.
We all have bought collectible cards and traded them with our friends. NFT trading cards are digital versions where users can exchange cards or collect as a hobby. The monetization value is not much.
It is as simple as it sounds. Brands and users can create their own avatars and fashion pieces which can be bought using cryptocurrency. The scope of design is wide because you can create a dress out of glass, fire or even look like a dinosaur if you want to. Brands like Gucci, Jordan, Nike, etc., are all tapping into virtual fashion market and already making millions.
Video Game Assets
Virtual accessories like Armours, weapons like bombs and guns, or even technical objects can be bought in video games. Players use them to upgrade their avatars and character roles. This enhances the level of the player and allows them to access the metaverse differently than regular or low-level players.
How to make money with NFTs?
We know you are eager and are looking to seeking answers for important questions like what to do once you have created or bought an NFT? How to make money with NFT? There are multiple ways to earn with NFTs. Either you are the creator or a trader, or both. Either way, some simple methods are:
P2E NFT Games
Earn rewards through gameplay. If you win, you collect that platform's native tokens which can be used for trading or spent on gaming accessories, collectibles, etc. Depending on the metaverse, the rules change.
Create an NFT and do not sell it, no matter what. Only when the prices truly skyrocket, do you decide to sell it for about 100x more money than you started off with. This method is called HODL (hold on for dear life). This method will only work on selected pieces whose prices are expected by experts to go up eventually.
If you have bought an NFT, sell it for a much higher price and do it only if you get a much higher revenue with a good profit margin. It is the opposite of the HODL method, as you sell if in shorter spans and keep doing this many times.
If you mint your own NFT, eventually it can be traded on the best NFT marketplaces. Even beginners can learn how to mint as it is a straightforward process. Although the competition is intense, and you can get a lot of money only if your NFT is out of the box or has high value.
Let's say you created an NFT and sold it. There is a provision which every digital asset creator can add, where you can earn lifetime royalties on the piece even after you received a lumpsum amount at first. If you are tech savvy, this is a great way to keep earning on every piece of NFT you ever sell. Just update your digital wallet, your terms & conditions, and you are good to go.
Staking NFTs is like investing in a luxury apartment with a view and then maintaining it to increase the investment value. You buy NFTs and stake them. Stakers also assign these stored digital NFTs to maintain their upkeep. In return, the owners give you a small reward. There are various sites like Rplanet who provides these services.
What is the future of NFTs?
The NFT craze shows amazing signs of growth and there is abundant potential in returns for investors. However, is it a viable alternative to traditional asset investments? Only time will tell! The future of NFTs is all about utility and value, and not just being a collectible investment. The metaverse has given cryptocurrency and NFTs a completely new platform, where the intangibles directly affect tangible economy. It will be used for businesses and improvement in security. The value of the NFT will be dependent on how it makes business efficient and secure.
If you are looking for opportunities to build the Indian Metaverse, join JioGlass Developer Network.Click Here