3 Ways You Can Make Money From NFTs In 2022
What are NFTs?
Our friends over at CNN define them as “… pieces of digital content linked to the blockchain, the digital database underpinning cryptocurrencies such as Bitcoin and Ethereum.”
Based on this definition it may be safe to assume a few things about NFTs. Firstly, their connection with blockchain makes them unhackable as a digital asset, and secondly, they’ll be valuable for a long time.
However, these assumptions are cemented by their non-fungibility.
What does non-fungibility mean?
Something is rendered non-fungible when it cannot be replicated. It is one-of-one. There are digital markers that separate NFTs from each other and replicating one is impossible.
For context, think of a Babe Ruth trading card. A 1916 version is currently on sale for $2.46 million. Its scarcity and the baseball legend it represents are what lend to its high value.
In March 2021, Mike Winkelmann (known as Beeple) sold an NFT art piece for $69 million. Later that month, Twitter CEO Jack Dorsey sold his first tweet as an NFT for roughly $2.9 million.
People are making money from NFTs. Here are three ways you can do the same.
1. Buy and Sell NFTs
While some NFTs are ridiculously expensive, some are quite affordable. Research reveals that NFT prices range from $0 to $69.3 million.
All you need to do is find a high-value one for a low price, and with the recent NFT boom, that shouldn’t be hard.
If you can get a great pair of shoes for a low price, why can’t you find an NFT for cheap?
2. Trade NFTs
In the same way that you can trade stocks on the market, you can do the same for NFTs.
Recent reports show that approximately 250,000 people trade NFTs monthly. If that many people are doing it so often, something must be happening, right?
With OpenSea being the biggest NFT marketplace, taking a visit might be the most lucrative thing you can do in 2022.
3. Mint Your NFT
While this may not be the fastest way to make money with NFTs, it is the most cost-effective way.
It doesn’t cost a lot to mint an NFT, and if you can convince people that it’s worth spending money on, you could be rich.
As hard as that may sound, the highest-paid NFT creators leveraged their fame to get people interested in buying.
There must be a group of people that you have influence over. If you mint an NFT for $3, make sure it’s something that you can convince someone to buy for $10.
While that’s a small profit, it’s still a profit.
In the marketplace, innovation is what drives pricing. The more innovative you can be as a business owner or entrepreneur, the more money you’ll make.
If you ask people like Kwasi Asare, they’ll tell you that it’s true!
Disclaimer: The information provided on this page does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is the opinion of a third party and this site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is high risk, with high-risk and unproven projects. Readers should do their own research and consult a professional financial advisor before making any investment decisions.