Are you asking yourself: Can you make money with NFTs?
Or perhaps you recently had a debate with a friend of yours who told you about how he’s making tons of money with NFTs?
Well, don’t look further because we’ve got all the answers to your questions right here.
In this guide, you’ll not only realize that you can indeed make money with NFTs, but you’ll also learn about how people are making money from NFTs in various ways.
Some of the ways an NFT can make you money will seem trivial but others will most likely blow your mind.
Anyway, let’s not waste time and dive right into the various way to make money from NFTs in 2022.
Key Points (tl;dr)
You can definitely make money from NFTs. Some require work and skill, others do not. Here are 8 ways you can make money with NFTs.
- Create Art to Sell as NFTS
- Build a Community Project With NFTS
- Earn Royalties on NFTS
- Invest and Trade NFTS
- License Out the Ip of Your NFT
- Stake Your NFTS for Yield
- Provide Liquidity to Earn Yield
- Rent Out Your NFTS
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The Truth: Can You Make Money With NFTs?www.tokenizedhq.com
Here’s the answer. Great article by @ChrisHeidorn right here: https://tokenizedhq.com/can-you-make-money-with-nfts/
Can You Make Money with NFTs?
Yes, you absolutely can make money from NFTs. The simplest way to make money is to invest in NFTs and trade them for a profit. If you’re an artist you can also create your own NFTs and sell them. But the most interesting ways to make money with NFTs involve using the asset to earn rental income, licensing fees, the yield from staking, or fees from providing liquidity.
It’s normal for people to be skeptical of something that’s entirely new and somewhat foreign to them.
Especially when so many people out there are claiming that it’s just a new trend and one big NFT pyramid scheme.
Your friend comes up to you and tells you about how he or she has been making a killing with this new thing called “NFTs”.
Chances are you don’t know that NFT stands for “non-fungible token” and you definitely don’t understand what that even means.
However, what if we told you that NFTs are a revolutionary new concept that will not only change the way we define and verify ownership?
What if NFTs unlocked completely new ways of earning income using digital assets which previously only sat idle in some wallet?
Once you understand exactly how NFTs work, you’ll also begin to understand why making money with NFTs isn’t just some pipedream or Ponzi scheme.
You can make money off your NFTs without even creating or selling them.
In these next few paraphs, we’ll tell you all about these new ways of making money with digital assets.
8 Ways to Make Money With NFTs
We currently know of 8 tried and tested ways of making money with NFTs. Some of them require active work, while others fall into the category of passive income stream. However, note that not all of them are free of risk. Always do your own research.
NFTs have paved the way for the creation of many new innovative business models.
So before we even get into the nitty-gritty details, in case you’re asking yourself “Can you make money with NFTs?”, the answer is a resounding “Yes!”.
Being able to tokenize assets in a digital form not only reduces the friction of moving these assets from one owner to the next.
It also allows us to use these assets as collateral or to break them up into even more pieces which are more affordable for many people.
In a day and age where the interest you earn on your money is edging closer and closer to 0%, finding new ways to monetize assets is crucial in building your own wealth.
We’ve put together a quick overview of 8 different ways you can make money from NFTs.
For more information on how to make money with NFTs via any of these strategies, click on any of the links below and you’ll be taken straight to the chosen strategy:
- Create Art to Sell as NFTs
If you’re an artist, you’ve surely asked yourself: Can you make money selling NFT art? The answer is yes, you can create art and turn it into an NFT that you can sell on various NFT websites.
- Build a Community Project With NFTs
Teams of founders who have a shared vision can use an NFT-based PFP project to get initial funding by selling tokens to a loyal community of early supporters. These supporters can show off their profile pics by using the Twitter NFT verification feature. Nowadays it’s quite easy to create 10k projects by using one of the many NFT generators that are available.
- Earn Royalties on NFTs
Creators of an NFT can set a royalty. That means every time the token is sold to another person, the original creator gets percentage-based royalty of the sale.
- Invest and Trade NFTs
Similar to investing in stocks or cryptocurrency, you can invest in or trade tokens in order to make a profit off of price fluctuations or value appreciation. So in this context, the question “Can you make money selling NFTs?” is relatively easy to answer. Yes, you can. Just make sure you know what makes a good NFT project and consider investing in a good NFT analytics tool for more informed decisions. And please make sure you educate yourself on OpenSea taxes.
- License Out the Intellectual Property of Your NFT
If your NFT comes with commercial usage rights, you can license out those rights to anyone who thinks they can create another valuable product based on intellectual property. Imagine the character on your NFT becomes the next Micky Mouse.
- Stake Your NFTs for Yield
Staking your NFTs involves you locking up your tokens in a DeFi protocol such as on NFTX. You earn yield in the platform’s native token for as long as you stake. If somebody asked me “Can you make money from NFTs?”, then staking would be the prime example I would use.
- Provide Liquidity to Earn Yield
Similar to staking, you can also add your NFTs to a liquidity pool and earn yield based on the trading fees collected by the automated market maker protocol. Make sure you only add floor NFTs to the pool because there’s no guarantee you’ll get back the same NFT when you exit the pool. Alternatively, you can also have a look at NFT loans, which are essentially peer-to-peer loans with NFTs as collateral.
- Rent Out Your NFTs
Many NFTs now also come with real-life or in-game utility. Someone may want temporary access to the token’s utility and the holder may not always need it. This opens up new passive income opportunities via NFT renting websites such as reNFT. Those wondering can you make money off NFTs should definitely be convinced by now.
Frequently Asked Questions (FAQ)
Before we wrap up, let’s quickly address a few frequently asked questions that many people have in relation to the question: Can you make money with NFTs?
Can NFTs make you money?
If you’re a fairly successful digital artist, then NFTs will have a revolutionary impact on how you can monetize your work and cut out many of the middlemen who dominate the art industry. Also, those who know how to build the future infrastructure of the NFT industry will be able to seize opportunities that most people cannot even think of right now.
What is the best way to make money with NFTs?
The best way to make money in any growing tech-based industry is to simply focus on building products and services that people need and love to use. Being early to revolutionary movements such as NFTs is a critical advantage in today’s fast-paced economy.
Yes, despite the skepticism of many doubters, you can indeed make money with NFTs.
Anyone who bothers to search Google for “can you make money with NFTs” should see this article come up and be convinced in no time.
If you’re an artist, then the list of the most expensive NFT sold should be enough of an incentive to at least be a little curious.
And as you’ve learned from this guide, there’s quite a variety of things you can do that don’t just involve buying and selling tokens.
So go ahead and get started. Pick the right model for you and start making money off these new digital assets that we all call NFTs!
Here at Tokenized, we want to help you learn as much as possible about the coming NFT revolution. We help you navigate this fascinating new world of non-fungible tokens and show you how you can integrate tokenization into your own business.