CryptoPunks. Bored Apes. Meebits. Azukis.
You might have already heard of these top-tier NFT projects leading the non-fungible token revolution in the crypto world.
You may have also heard or read about how content creators, digital artists, and investors have since created life-changing fortunes through creating and investing in NFT projects.
For instance, digital artist Beeple’s “Everydays: the First 5000 Days” NFT art sold for $69 million at Christie’s in March 2021.
On the other hand, early investors in blue-chip NFT projects like CryptoPunks and Bored Ape Yacht Club have seen their investors’ digital asset portfolios skyrocket.
Top brands, celebrities, businesses, and both upcoming and established artists are getting into the act, launching their own NFT collections, entering ventures such as NFT gaming, and diving headfirst into the NFT market.
If you want to get on the ground floor of how to make money with NFTs, you’re in luck. We’ll teach you how to get started with NFTs!
- NFT industry’s growing scope, influence, and rapid development will reverberate across business, finance, art, and technology for years to come.
- Trading is the most accessible way to make money with NFTs, and SendingMe will have all the discovery, negotiation, trade, and management features in one place!
- Smart contracts and NFTs are in their earliest stages of development, and so are the platforms we have mentioned in this article.
- The most important thing before diving into making money with NFTs is to do your homework and understand the pros and cons of each income-generating strategy.
- There are plenty of ways to earn a consistent stream of passive income, but it’s not without its risks – do your own research, keep your head on the ground, and start creating.
What Is an NFT?
Non-fungible tokens refer to a piece of digital content that cannot be altered or replaced with something else.
NFTs can be any piece of content – such as digital art, music, social media content, virtual real estate, and digital fashion, just to name a few.
You can then make money with NFTs by selling your collection for cryptocurrencies or stake them to earn passive crypto income.
You can also make some coin with NFTs through revenue sharing, royalties, or yield farming, which we will discuss below. Let’s get to it!
One of the most popular ways to make money with NFTs is to trade them.
If you’re new to the world of NFTs, you might be wondering why anyone would want to trade them in the first place. After all, most NFTs are digital items that don’t have any intrinsic value.
Trading NFTs is very similar to trading collectibles, like baseball cards. The price of an NFT is mostly driven by the “hype” around it and the value if brings to its communities and holders.
Let’s say you purchased a lesser-known NFT. With time, the project became popular and more people would like to buy that NFT. But you already bought it before it became mainstream, so the price increased, and now you can make a profit.
You can trade NFTs on different marketplaces, like OpenSea or Rarible. But you would be paying quite a hefty fee for each trade. Alternatively, you could trade C2C (by tediously looking for Discords and Telegrams of NFT holders and NFT groups), but now there is a risk of a fraudulent counterparty.
SendingMe is the answer. You can discover NFT projects, negotiate directly with the owner, verify their reputation and trade the NFT – all through one platform!
How to find promising NFT projects?
As the popularity of non-fungible tokens continues to grow, more and more projects are emerging in this space. With so many options available, it can be difficult to know which ones are worth investing in.
There is one common denominator in successful investments – being early.
To find profitable NFT projects, it is important to stay up-to-date on industry news and developments. Twitter is a good place to start, as well as dedicated NFT forums and websites.
When you discover a new project – the next step is to start engaging on their Discord. Your goal is to get on the white list, which is a list of people who will get the NFT mints as the first ones.
But to give you this upper hand on the NFT project you are interested in, you will first have to do something for that project. You can help with promotion, give a hand with graphic creation, or maybe even help with coding. There are always tasks that can establish you as a valuable community member and help you get on the whitelist.
In some rare cases, you can actually get a placement for a free mint, which can skyrocket in value just a few days after its public release.
The bottom line is – to keep your eyes open at all times and do your own research. Gather intel from every source that you will stumble upon, have a deeper look at the project, and see if you can get ahead of other investors.
Mint And Sell NFTs
Minting is the act of publishing a digital asset on the blockchain to trade NFTs or sell them on an NFT marketplace.
You can create NFTs out of anything. NFTs can be a digital file, artwork, original music or audio samples, videos, memes, or social media posts, to name a few.
But most of the hype revolves around digital art and profile pictures (PFPs).
It’s simple to mint your own NFTs: all you need is a digital wallet, access to a blockchain, and an NFT marketplace like OpenSea or Rarible.
Once you’ve funded your cryptocurrency wallet, created your NFT art, minted it on-chain, and put it on an NFT marketplace.s.
But, arguably, the hardest part is yet to come! NFT market is full of new releases. In order to stand out, you must create a lively community around your project. Through community-building tools, guerilla marketing, or leveraging your social media accounts – you must make sure that your NFTs are being talked about!
It’s important to market your NFT collection because most investors won’t buy into them without promotion and a notable following, establishing the market authority of your NFT.
The competition between NFT creators is tight, considering the sheer number of NFT projects launched daily. Therefore, you need to show how and why your NFT project is a cut above the rest!
Once you sell your NFTs, you will receive the sale proceeds minus the marketplace’s cut, which you can then withdraw to your crypto wallet of choice. In comparison to other platforms, SendingMe will offer much cheaper pricing – allowing you to keep more of your profits!
To make the presentation and discovery process easier for our users, SendingMe will have features like minishop (where you can showcase your collections) or social feeds (where you can discover the NFTs of other holders).
SendingMe will also offer trading and crowdfunding to make bigger NFT purchases – all that seamlessly integrated into our instant messenger (so no more switching between 3 platforms)!
In combination with other features that SendingMe has to offer – we are a perfect place to launch your next campaign!
On the buyers’ side, there will be various discovery tools to find a promising NFT (like yours) easily! Here are some of the ways the buyers will be able to find your project:
- Through SendingMe social feeds;
- Recommendations from people they are interested in (buyers can see what their followed influencers are buying);
- Buying from a reputable sellers minishop (making an offer on someone’s stuff on their minishop).
- Through NFT filter settings.
Another way to make money with NFTs is by staking them for yield. Staking refers to the act of “depositing” or “locking up” digital assets into a decentralized finance (DeFi) platform in return for cryptocurrency rewards.
But since NFT staking is still in its early days, there aren’t many NFT staking platforms available yet. DeFi staking platforms such as Kira Network, NFTX, Splinterlands, and Only1 allow staking NFTs for yield.
DeFi platforms offer various APYs depending on the NFT you hold or stake. For instance, Kira Network bases its rewards on how much value such digital NFT assets would contribute to the platform.
This includes the increase they generate in network activity based on their circulation. You will then get paid in the platform’s native digital currency, which you can cash out or reinvest in other protocols in most cases.
If you wish to make passive income from NFTs, NFT staking might be the right approach for you. As the NFT industry matures, more DeFi and NFT platforms will offer more staking opportunities.
NFT in Gaming
NFT-based video gaming offers a way to make money by participating in and creating content for video games. These games allow you to create, buy, and sell NFTs as in-game items and trade them for NFTs or cryptocurrency.
While NFTs in gaming are still in their infancy, the possibilities are tantalizing.
For instance, the blockchain game CryptoKitties stands out from other NFT games due to how expensive their in-game NFTs and accessories can cost. One CryptoKitties NFT sold for 600 ETH in 2020, or $390,000 at the time.
However, not all NFT-based video games will cost you an arm and a leg to participate. More and more blockchain games with more affordable NFTs have been released. Some NFT game developers even offer free NFTs as an incentive for people to sign up and play.
SendingMe mini-shops is a great way to show off your gamefi NFTs. In addition to that, our low fees and the possibility to crowdfund purchases – will make it easier for potential investors to buy from you!
With all these advances in blockchain technology, you can expect game NFTs to pick up interest in the coming years – and so will making money from NFTs. All it takes is doing your own research to find the next big NFT-based video game.
Play-to-Earn NFT Games
Now that we’re on the subject of gaming, play-to-earn (P2E) games can be another way to make money with NFTs.
P2E NFT games allow players to generate cryptocurrency rewards through incentivized gameplay.
Often, these are denominated in the gaming platform’s native token. You can exchange these tokens for stablecoins, other cryptos, or fiat. Otherwise, you can spend them on in-game NFTs and accessories.
Play-to-earn NFT gaming has boomed recently when millions of players earned steady incomes during the pandemic.
There are hundreds of play-to-earn blockchain games out there – all you need is a browser, a crypto wallet, and some crypto to get started.
If you’re a digital artist or content creator, setting up royalties on your NFTs may be the perfect way to establish a source of lifetime passive income.
Through NFT royalties, you can earn a percentage on the sale price of your NFT each time it changes hands on the secondary market.
This means you will earn passive income long after selling your NFTs to other collectors.
For instance, if you introduce a 20% royalty on your NFTs, you will receive 20% of the NFT sale price each time your digital asset changes ownership.
Better still, since the royalties are governed by a smart contract, you don’t need to track your royalties payments or enforce them. They’re all governed by automated agreements within a smart contract.
It’s all a matter of setting the percentage you wish to receive as royalties from secondary NFT sales.
NFT marketplaces like SendingMe, OpenSea, and Rarible, for instance, allow you to set royalty fees in case an investor buys your NFT and uses it elsewhere.
Earning passive income from NFT royalties may seem like a daunting task for artists and creators wanting to make the leap into crypto.
But trust us – it’s well worth the effort. NFT royalties are one of the best use cases for artists to generate a passive income stream with NFTs.
Licensed NFT Apparel or NFT Collectibles
Are you a fashion designer? Why not launch your own line of physical-digital hybrid NFT apparel?
That’s literally what brands like Gucci and Dolce and Gabbana are doing.
You can create digital versions of your apparel, mint them on the blockchain as immutable proof of ownership, and sell their physical and virtual NFTs to the hip fashion crowd.
On the other hand, the NBA turned basketball cards into NFTs with its NBA Top Shot NFT project, to critical and commercial acclaim.
The NFL also launched a similar NFT project, selling highlights known as “Moments.”
These NFL Moments are digital collectibles licensed by the NFL and the NFLPA. They can be swapped or traded for cryptocurrencies.
More and more brands are expected to follow their lead in licensing NFT collections.
And given the increasing hype, it might be time for you to convert your physical creations into NFTs and put them up for sale on an NFT marketplace.
Yield farming has mushroomed in popularity since 2020, when Compound, a DeFi platform, first introduced the concept.
Since then, hundreds of yield farming protocols have been launched, enabling investors to earn impressive yields on their crypto assets.
Like staking, yield farming (or liquidity mining) is the process of earning rewards on digital assets locked up on a DeFi platform or decentralized exchange. These digital assets are then utilized as a liquidity provider along with cryptocurrencies.
Basically, NFT farming rewards you for staking NFTs for cryptocurrency rewards. However, NFTs come into play as a staked token or a reward.
In doing so, they create utility and liquidity from otherwise illiquid NFTs.
In yield farming, staking NFTs earns you rewards like the protocol’s native cryptocurrency or in the form of other NFTs for profit.
Think of NFT yield farming as another income stream built on a process that generates rewards on its own.
You can use various yield farming platforms to create a multi-layered passive income generation technique using your NFTs with little to no effort.
While that may sound complicated (and with some platforms, it really is, as you have to swap between various tools and currencies to make it work) it is very simple on SendingMe. Our platform has built-in features that will make this process seamless.
Investing In Companies Engaged In NFTs
Want to make money with NFTs without the hassle of buying and securing cryptocurrency and NFTs? Buy a portion of a company that services the NFT market.
There are three ways to go about it:
- Buy publicly traded shares in companies that either has some exposure to these digital assets or have some direct financial stake in the future of NFT and blockchain technology.
- Negotiate a private deal where you would be helping a startup Web3 company to build their NFT product.
- Look for DAOs that are planning to work in the NFT space.
This is a much harder strategy to implement, as the opportunities are usually not public. Be active in the SendingMe community, keep your eyes open, and when the right deal comes – you will know it!
SendingMe has all the features in one place to get you started on yout NFT trading journey.
Through our groups and communities, you can promote your minted NFTs and show them in your own mini-shop. While our built-in trading features will allow you to buy and sell NFTs without leaving SendingMe!
Buying NFTs may seem simple, but it is all but that. There is a learning curve, and it takes time to make all the right connections, get into lively Discord servers and just become a part of the community.
The best deals will come to you when you engage!