How to make money with nft

04.11.2021 11 2286
How to make money with nft

An NFT: What is it?

Getting all the Ducks in the row, or the way NFTs work

Who can be Interested in NFTs and why?

How to Make Money from NFTs

Places Where you can Purchase Non-Fungible Tokens

Weaknesses of NFT Technology

Requirements to be Allowed into the NFT Platform: are there any?

A Bit of Inspiration for You

Frequently Asked Questions— FAQ

 

The cryptocurrency was big news a few years ago, but it kind of got forgotten as time passed by. However, the crypto world did not stop evolving and made an opportunity for digital platforms to create a place where people can share their art creations - NFT.

 

Some of you may not even know what NFTs mean but believe us, they have made quite a splash in the world of digital art and video games. The whole crypto community was drastically changed when NFTs appeared!

 

We might even say that the phenomenon of a Non-Fungible Token and its platforms became a new crypto trend where both traditionalist fine art supporters and crypto-enthusiasts could find a place to enjoy and buy artworks that are in correspondence with their tastes.

 

When simple GIF files are getting sold for millions of dollars in total sales, you can no longer ignore the fact that NFTs are our future!

 

In order for you to get acquainted with what is an NFT, how you can make it, and, at the same time, get some real money out of selling it, this article was created. Stay tuned whether you want to make an NFT collection or are just interested in finding out what it means!

 

An NFT: What is it?

NFT deciphers as a Non-Fungible Token, which can be understood as a collectible digital asset that you can sell or buy. NFTs are pieces of fully digital artwork: just as if you created a more traditional physical piece of art, the NFT collection differs only in the fact that it can be seen and sold online.

 

In addition, NFTs, as they are non-fungible pieces, cannot be exchanged for something of the same or similar value, as they are unique and one-of-a-kind creations. For example, bitcoins are all the same, and one of them can be exchanged for another one: there is no difference in which of them will be yours.

 

But if you would want to trade NFTs, this would not work. You still can do it, but what you will gain in return definitely would not be of the same value, as no digital equivalent exists. Selling NFTs is always better for an original owner than trading them: the last choice is logical only if an artist has some sentimental value in regard to another person's piece of work.

 

Basically, almost anything can be considered as NFTs: be it a digital painting or music file, it does not matter. If the piece that the artist is selling holds some value to the creator and drags the attention of some potential buyers, then it could be viewed as an NFT.  When creating or considering to make a Non-Fungible Token, you can let your imagination go as far as you want to and create something that previously would not even be thought of as art.

 

Someone even created digital pet rocks, and they are quite popular: digital pictures of unique rocks that cannot be used in any other way than being resold and traded.

 

Getting all the Ducks in the row, or the way NFTs work

Generally speaking, Non-Fungible Tokens are a part of some blockchain, for example, an Ethereum one, that holds some specific to the digital asset information. And, as we have mentioned before, all of the tokens have their own value that is represented in the form of cryptocurrency, which means that most NFTs can be bought.

 

Furthermore, NFT tokens can be bought as an original piece or as a copy. And only the original will hold important to the digital art information, which means that they cannot be sold or bought as the original.

 

And, of course, you probably can download a beautiful picture from an Ethereum blockchain, for example, without paying for it, just making a simple right-click on the digital art. But the tricky part is that NFTs are sort of a value-holding investment: when simply downloading the work of another person without paying to get the original, you cannot place it for an auction and become a millionaire, as some people did.

 

The way the value of the NFT tokens appears can be compared to one of the trading cards: the rarest your work, the more suitable is the platform that you have chosen for your art, the bigger would be the value. And with the constant growth of the NFT popularity, you will have more chances to get the best offer for your piece of art.

 

Hope that now you can understand the basic function of NFTs and how they work.

 

Who can be Interested in NFTs and why?

The general NFTs audience includes artists, creative industry brands, and gamers, but that does not mean that if you do not belong to these categories that you would not find anything interested there for yourself. You still can buy some digital asset or even become a digital artist, as this market can allow you to sell a great variety of different things that would not be considered as art anywhere else!

 

Not all NFTs are equal in popularity and pricing, but all can find their place in this NFT world!

 

1. For Artists

NFT marketplaces are another great place to spread artists' work, get some feedback and receive additional money. In addition, you can receive some percentages out of every resell of your own original NFTs. It can be a simple Photoshop-made picture or a GIF, as well as a more serious piece of art: anyone can find him or herself a place to get noticed!

 

Widely known artists can use NFT space to gain some extra money out of their NFT sales: as they are already famous, they can put pricing that is on average higher than others. Also, digital platforms let artists become more known, as the information can be spread much quicker. With this fact in mind, now it can be easier for digital artists to gain popularity and increase the prices.

 

However, we cannot say that this is an always present tendency: there were cases when digital artists made a huge profit from their first NFT sales.

Talking a bit more about the opportunity to make more money out of every resell of your artwork, with which the NFT market and its smart contracts provide you, here is a more specified explanation of how it works: when an artist is selling his or her piece of work, it later could go on the secondary market, where the art would be sold for the second or more time.

 

In order for the artist to receive some profit percentage out of it, a smart contract is needed!

 

2. For Gamers

To top off all of the previous stuff mentioned by us, a great change was made for game players and artists related to this sphere: in the past, gamers could only make in-game purchases that still belonged to the company that created the game and could not be used anywhere outside this platform.

 

Now, when NFT tokens have stepped into the digital market, artists can create and sell digital art that is game-related, and they will constantly belong only to the players. Gamers can also notice how the market has been changing with NFTs: now, many games are created based on in-game NFTs.

 

Moreover, some moves are starting to appear in regard to creating TV shows related to NFT! There is one TV show that is still in the making process, and another one called the Stoner Cats, with only one episode available at the moment. This last TV show stars some quite popular actors, such as Mila Kunis, and requires you to obtain an NFT token in order to watch it.

 

3. For Brands

The non-Fungible Token platform is also a great opportunity for different brands to gain additional money selling your work, as well as attract more customers.

 

For example, Taco Bell company created their own GIFs on one of the NFT marketplaces that were sold within the first 20 minutes after their publication. And now, these same cards are being resold on the secondary market for the price of 3,500 dollars!

 

First and historically important online events can also be sold now, as it was done with the first Tweet of the co-founder of the Twitter social media, Jack Dorsey, for almost 3 million dollars!

 

NBA also has its own NFTs products, such as NFT cards with important for the fans' events. These sports cards are very popular within the basketball circle!

 

As you can see, NFT space can be a wonderful additional source for gaining a profit, and not only for the art creators and musicians but for the already existing brands and companies too.

 

4. For Buyers

And, of course, we could not forget about our buyers - the people that support their favorite artists and help the platforms stay alive!

When purchasing an original piece, you are able to do whatever you want with it:

 

  • Resell it,
  • Simply keep it to yourself and enjoy this "possessing" feeling,
  • Post it online without having to worry about copywriting rights,
  • Or anything else that your soul desires: even destroying it!

 

As we have mentioned earlier, buying an original gives you certain privileges, like actually obtaining the rights of ownership that can be proved by the information from the Ethereum blockchain, for example, in which the artwork was registered.

 

Some might want to collect certain digital assets in the hope that later they will become more valuable and could be sold for a big amount of money. Or simply keep the collection to themselves, as many collectors of physical art do.

 

How to Make Money from NFTs

In correspondence with the previous section, here we will talk about different types of NFTs that you can create and gain money from. They can overlap with different categories of people that we have discussed above so that you could obtain a better understanding of what can be done and by whom.

 

1. Digital Artworks

The most popular type of works that is always in high demand and that can be created by any digital artist is digital artwork. Before this year's March, no one really understood digital works, their value, and the possibility to become an investment, but after this month, when a simple digital artwork was sold at an auction for 69 million dollars - everything changed!

 

After that, people started to hear more about NFTs, a bigger variety of works was published, and the prices became really high! We would say that creating a digital asset is the simplest and fastest way of creating an NFT so as to sell a digital art of yours later, and with a big probability of high demand for your piece.

 

2. Collectibles

Quite a logical idea for the exploitation of the Non-Fungible Tokens' platforms is licensed collectibles. As with some collections of physical art, the same can be done in a digital form.

 

And as NFTs ensure us that their items are one of a kind, it may be even interesting now for people to collect digital assets instead of physical ones. These days the most popular form of collectibles is sports cards, as in the case with NBA publishing cards with the most important and fascinating moment in basketball history, and we believe that this trend will be followed by other sports.

 

Another advantage of digital collectibles is that they will not lose their quality: when physical artworks can be damaged in transportation, they lose their colorfulness, but digital assets are always the same.

With digital assets, NFT collectors do not have to worry about their property getting damaged, as people with physical collectibles do.

 

3. NFTs and Fashion: Who Would Have Thought?

Yes, Non-Fungible tokens made their impact even in the fashion sphere, as their blockchain-based NFT marketplace ensures that no forgery would appear.

 

NFTs became an additional income source for fashion companies and brands, as they now have an opportunity to sell limited editions or famous celebrity pieces on the market that can provide them with the highest bits and make sure that no counterfeiting would appear.

 

NFT collectors love everything that is even more unique and valuable than the usual NFT items are, and limited editions are just what is needed.

 

Moreover, fashions brands now have an opportunity to create their own blockchain and NFT based platforms, where they could sell their clothing in a secure manner so that no one could steal their designs and be left unpunished.

 

If you are in the fashion business, consider the NFT marketplace for upgrading your working process, it might be worth it!

 

4. Videogames

Yes, we already talked about them above, but let us give you a bit more details on how you can make money from them.

 

Before we told you about an opportunity to create in-game NFT items that can be used by players and, at the same time, be a property to belong not to the game developers but to the gamer itself.

 

But as with an example about TV shows that now can be created around Non-Fungible Tokens, NFT video game developers also can create Ethereum blockchain-based games with digital assets being the prime focus of the game. This is quite an uncovered sphere in which you can prosper!

 

Places Where you can Purchase Non-Fungible Tokens

There is quite a big variety of platforms with blockchain technology that you can consider as the place for you to find some NFT art or make NFT sales, but they may differ in the type of NFTs that are allowed in there and in the way new members can access the platform.

 

In general, we would recommend you to start with some of the most popular platforms that cover the biggest amount of different types of NFTs and let almost anyone visit them. Also, do not forget that different platforms may demand different types of digital wallets and cryptocurrencies, so be ready for that when a marketplace is already chosen by you.

 

In addition, you may see that many platforms allow creators to publish NFTs in drops, which is done in order to control the level of demand that can be constantly present in the marketplace. So when you have found some interesting piece of art, make sure to get everything ready: from creating a crypto wallet and making a platform registration to purchasing a decent amount of cryptocurrency. Otherwise, you may lose your chance.

 

Here you can find a list of some quite popular platforms with a user-friendly interface and different types of Non-Fungible Tokens allowed:

 

  • BakerySwap
  • OpenSea
  • Nifty Gateway
  • Foundation
  • SuperRare
  • Rarible
  • Axie Marketplace
  • NFT ShowRoom

 

Right now, making money with NFTs is the easiest way that ever existed; who knows what rules will be implemented later? Use your chance!

 

Weaknesses of NFT Technology

One of the main disadvantages that NFT Technology has is its impact on the environment and climate change.

 

As it takes a lot of energy and resources to create a constant source of exchanging real money for the cryptocurrency, and then, for the art piece itself, NFT art can spend as much energy as some country in Europe does within two weeks. And we are not talking about some huge digital art piece; no, a simple picture or a GIF can make the same impact.

 

And of course, many platforms, together with artists, are now trying to create a more eco-friendly environment for all of the NFTs admirers to connect in, but there is not so much that we can do about the mechanism underlying the work of our cryptocurrency systems: this proof-of-work mechanism ensures the safety of all the transactions made on the platforms so that NFTs would be securely stored and nothing would get stolen, but, at the same time, it takes up a huge amount of energy to do so.

 

All that we can do about this fact now is simply try to come up with a better version for the NFTs to work and wait until it goes out into the world. In the meantime, making money through NFTs will impact our ecology.

 

Another important limitation that was developed within the work of NFT platforms is their pricing.

 

The initial idea behind creating NFTs and platforms for them is to give the artists back control over their work and the choice of customers. However, with time, as a lot of Non-Fungible Tokens started to gain enormous amounts of money, some elitist tendencies became clear.

 

In line with this tendency, high buy-in fees do not help the artists, as well as the buyers, to create a balanced mutual platform. These costs can stop many potentially great digital artists from getting into the market and finding their fanbase.

 

At this point, opinions have divided: some actually go into the NFT world with the thought that this is a platform for future fine art collecting, and for them, the cost of participation in the NFTs buying process is not a problem. But others think about NFT marketplaces as a mutual to everybody place where both rich and poor can find something inspiring to purchase.

 

Requirements to be Allowed into the NFT Platform: are there any?

Generally speaking, there are no overarching terms for you to be able to buy or sell an NFT art. Some platforms may let anyone in, and others will require an invitation from an already existing member or some form to be filled out before you can get accepted. It all depends on the marketplace, even the type of crypto wallet.

 

So yes, anyone can be considered as a digital artist, as anyone can create artwork, with the help of blockchain technology, go through the "minting" process to turn their digital art into an NFT, create a digital wallet, buy some cryptocurrency, and put a piece of art out on the platform of your choice.

 

But the general obstacle that may come between you and the platform is the cost and amount of different fees. The common one, so-called "gas-fee", has enormous pricing in every platform and is paid for every transaction, as it is the price covering all the energy that was put into making your deal.

 

Additional ones that you can meet with are related to the selling and buying process, the differences in the pricing of the fees that may differ on various days, and so on. After you have paid for all of the taxes, you may understand that as a result, this amount is equal to the one that you put for the price of your digital art or is even more than it.

 

The number of fees and their value can differ from one NFT marketplace to another, so you may want to do a little searching on most of them before sticking to some particular platform. However, some people may not be able to afford even the lowest prices for the fees, which may come in their way of joining a crypto community.

 

A Bit of Inspiration for You

We all know how easy it would be for already famous people like NBA players, musicians, and entrepreneurs to come into the market and sell something for a 6-figure amount of money.

 

Here we would like to talk about some of the digital artists that made lots of money by making NFTs so that you would not think that all that we discussed before is some crazy talk. These are real people with their own stories about going into NFTs and how it changed their lives!

 

If they believe that NFTs are our future, then you should too!

 

Meet the Coin Artist

Marguerite de Courcelle, also known as the Coin Artist, firstly came into the NFT business when she created digital puzzles out of her paintings, for which she became quite popular in the sphere. Her dream was to create a crypto-based game, but she did not have enough support and technologies to do that.

 

But with the development of the NFT market, she later made her dream come true, as she launched her first game in 2018. With the help of the blockchain, players can buy items inside the game. Coin Artist and her game have gotten more than 300,000 dollars of profit this year.

 

Marguerite could not find herself a purpose before NFTs were created, but now, she is an independent digital artist that is capable of making money with the help of Non-Fungible Tokens.

 

Meet Matt, an Oil Painter in the Past

As you can understand from the heading, Matt was a usual oil painter that was making his living out of his artistic capabilities. When he first found out about the NFT market and that you can sell NFTs there, he did not make much of a profit there, at least in comparison with his oil paintings.

 

But with time, as he became more and more popular on the NFT market, as his digital capabilities grew, he was able to make a living only out of his digital collectibles.

 

Moreover, as smart contracts with their royalty payments have entered the field, more profit opportunities were made for the artists, as now they can receive a percentage out of every resell of their work: make money from your artwork, and make it as much as you can, Matt says.

 

Meet Sarah

Sarah was selling her photographs at different fine art galleries before she found out about NFTs and decided to give it a go. She made a decent enough living out of her work, but not as pleasant as it would be later with the help of NFTs.

 

Sarah became a psychedelic digital artist that gained her popularity by trying to publish her work on different platforms at the same time. It took her less than a year to actually start making a great profit from her GIFs, but after that, she says that her life changed rapidly! She would never have thought that it would be possible to sell NFTs and gain great sums of money at the same time, but it happened.

 

Now, do you believe that NFTs are real, that they can help you make out of the impossible to imagine things something decent and worthy? We definitely do, and this crypto trend will not go away that easy.

 

Frequently Asked Questions— FAQ

 

How do NFT Creators Make Money?

We would say that there is nothing complicated about the way NFT creators gain profit: they simply make a piece of digital art, place it on the NFT platform of their choice together with the fixed pricing or in an auction form, and wait for the offers to come.

 

Nowadays, almost any crazy idea can find its followers that would want to purchase what they have liked, and Non-Fungible Token works the same way.

 

What can I Sell as an NFT?

Generally speaking, anything. What can put some restrictions onto you is the choice of your platform, as they can be in an all-allowed, theme-allowed, or choice-allowed form, which basically means that either there is the theme, types of art restrictions, or no restrictions at all present in the marketplace.

 

Other than that, if you are sure that your work will find its admirers, you can create anything you want and place it on the NFT marketplace. Otherwise, you might only spend some money on the fees and gain no profit at all.

 

How Much Does it Cost to Make an NFT?

There is no constant pricing of creating an NFT, as all will differ depending on current pricing, type of the platform, and the number of fees present in them.

 

But we would say that no less than 70 dollars will be spent just for creating NFTs on an Ethereum based platform - the most widespread one.

Yes, the prices are quite high, so you better consider all of the possible risks before spending that much money on the simple publishing of an art.

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