In the wake of the digital art sector’s 2021 explosion, sparked by a series of jaw-dropping NFT sales, interest in profiting from NFTs has reached an all-time high. It’s a tantalizing prospect, but the blockchain’s complexity and the intricate world of NFTs can be daunting. Moreover, NFTs are often linked to cryptocurrency, a realm associated with scams and overnight riches. However, this perception is far from the truth.
The reality is, there are myriad ways to profit from NFTs if you’re willing to invest your time, resources, and research into this exciting space. Your choice of strategy will depend on your experience, skills, and available time. In this article, we’ve curated a list of both active and passive methods to help you unlock the earning potential of NFTs.
So, can you truly make money with NFTs? Let’s delve in:
Active income means putting in effort to reap rewards. Here are some ways to actively make money with NFTs:
Minting and selling NFTs you’ve created is one of the most lucrative paths in the NFT industry. The market has witnessed multimillion-dollar NFT sales since early 2021, and as the NFT space gains momentum, more investors are eager to acquire NFT art at premium prices. The good news is that becoming an NFT artist is more accessible than you might think.
NFT trading and investing are popular active income methods. Just like traditional trading, you can take either a short-term (scalping, day trading, or swing trading) or long-term approach. Short-term strategies demand more time and come with a learning curve, especially for beginners. However, there are ample profit opportunities. Understanding the NFT market, staying informed about project trends, and seizing opportunities are key to success.
Surprisingly, you can now earn cryptocurrency by playing games thanks to blockchain technology and NFTs. These games function similarly to traditional ones, but the items, assets, and in-game currency you acquire can be traded and sold for real money. Remarkably, some individuals in the Global South have replaced full-time jobs with earnings from NFT games.
Passive income allows you to make money without continuous active involvement. However, many passive income options require an initial investment of capital or time before you can start earning passively. Here are three such strategies:
Staking your NFTs on DeFi platforms offers a straightforward and relatively low-risk way to generate passive income. It involves locking your assets to earn rewards without selling your NFT collection. The more you stake, the more you can earn based on the Annual Percentage Yield (APY) and the number of NFTs staked.
NFT renting is another way to profit from the growing world of play-to-earn games. Many of these games require substantial upfront investments, which not everyone can afford. You can purchase the required NFTs for these games and rent them out to players who want to participate but lack the assets. This often involves in-game tools, characters, skins, or land plots, and you receive a portion of their cryptocurrency earnings in return.
NFT royalties are akin to royalties in the music and art industries. They grant creators a percentage of future sales or profits whenever their NFTs are sold or traded. Unlike traditional sectors, NFT artists have full control over their royalty conditions, and payments are made automatically through smart contracts. While this offers a passive income stream for artists, the actual income can vary based on factors like buyer interest and market conditions, with the average NFT royalty ranging from 5% to 10%.
Making money with NFTs offers a spectrum of opportunities, each with its own level of time and effort investment. Whether you’re interested in active methods such as trading or creating NFTs, or prefer a more hands-off approach through staking, renting, or royalties, NFT Stars is your gateway to NFT insights and opportunities. Explore the NFT world and unleash your earning potential today! 🚀
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