FxBrokerReviews.org – Whether you are an artist, a crypto investor, or simply browsing the Internet, you certainly have come across the craze of NFTs. Everyone is talking about NFTs: the future of digital art, digital money, investments, and more.
NFT is a form of cryptographic token that is developed on a blockchain and is unique and cannot be traded or swapped like bitcoins. NFT token has caught the interest of an increasingly large number of people. These digital assets are very popular in the trading world and everyone, from well-known corporations to celebrities to a layman, is considering minting their own NFTs
NFTs can be used in several ways to make money and earn extra. While it is not a quick way to earn money some understanding of how they work, the better off you are. However, remember not all NFTs are the same. They can range from paintings, artworks, virtual clothes real estate, and more and also have a huge difference in terms of value. Therefore, if you apply the correct strategy and have a proper skillset you can earn well in the NFT marketplace.
How to buy NFTs on the marketplace?
Buying an NFT token on the marketplace is quite similar to buying an asset from a physical marketplace. However, unlike common marketplaces, the purchase is not paid with dollars or euros but with crypto coins. When you find a digital asset (like music, sports, or more) on the marketplace like Opensea or Binance. You will be required to have a crypto wallet to store and buy the NFT token. NFTs are traded using cryptos and there are several digital currencies you can use to pay for your NFTs. The currency depends on the marketplace and the blockchain that the platform supports For example, if the marketplace is based on the Ethereum blockchain, you’ll pay with the Ether coin.
How to buy NFT on Binance
To explain better, let us see how you can buy an NFT token in the Binance marketplace :
Step 1: Top Up Your Wallet With Crypto
In the first step, you’ll need to create a Binance account to top up your wallet with crypto: BNB, BUSD, or ETH. You can easily buy crypto or top up your Binance wallet on the same platform.
Step 2: Access Binance NFT Marketplace on the App or Browser.
Once your crypto wallet has sufficient funds to trade an NFT, you are required to go to the Binance NFT marketplace either through the App or web browser and log in with your details.
Step 3: Find The Right NFT
To find the right kind of NFT you can use the filter functions on the secondary market or the Mystery Box Market and search for NFTs according to different categories/ collections. Or you can even select from the handpicked recommended collections of the marketplace.
Step 4: Buy The NFT token
The marketplace allows you to buy an NFT in four different ways. It depends on how the creator/ seller has set the format of the sale. The four sale formats are :
- Auction,
- Fixed Price,
- Make an Offer &
- Mystery Box.
How to sell NFTs?
NFT marketplaces are the place for both buying as well as selling NFTs. The process to sell NFTs is usually very simple. You just need to log in to the marketplace, go to its selling page, and put your NFT on sale.
However, you need to keep in mind that every operation requires a small transaction fee i.e. when you put an NFT on sale, you need to pay a fee. The fee depends on the marketplace and the blockchain it is operating on. If the marketplace runs on Ethereum, fees will be very high as Ethereum is one of the most expensive blockchains but, if you pick other blockchains, you can spend less on fees.
How to make money with NFTs?
Now that you have learned how to sell and buy NFT tokens, let us find out how to earn money while trading with NFTs. Earning money with NFT is quite rewarding if own an NFT once, you can keep earning money on that NFT for every transaction. An investor could buy an NFT wait for the NFT price to rise, and then finally sell it This is how you can make profits with NFTs.
Read below some strategies that will help you earn money with NFTs
Rent NFTs to Others
Some NFTs have a role in other platforms like video games or sports in the form of trading cards. This allows you to rent or lend your NFT to someone to use in a game or other specialized platform for a fee. It is a profitable situation for both parties as it allows another person to use the NFT without having to buy it and you can earn extra by renting it out. These rental agreements are governed by software programs on a blockchain called smart contracts.
Play-to-Earn Games
Play-to-earn (P2E) games are another top NFT trend that offers players the opportunity to win real-world rewards. These games have some aspect of cryptocurrency in their gameplay and allow players to earn crypto for playing the game or crossing a level or achieving any objective., The players can either earn the crypto token supported by the game itself. For example, when playing Battle Infinity games, players will earn IBAT. Second, these P2E games also enable players to earn NFTs. these NFT tokens can act as an in-game asset, such as a weapon or vehicle.
Invest in New NFTs Early
One of the most effective methods to get profits in the NFT marketplace is investing in a newly minted project or NFT collection. In doing so, it offers the most viable entry price. For example, the Bored Ape Yacht Club – one of the most successful NFT collections was launched in April 2021. The club made available 10,000 NFTs to the public for the ETH equivalent of under $200. The NFT collection became a hit and several celebrities made a purchase. And today, the Bored Ape Yacht Club NFT tokens have sold for over a million dollars.
Trade NFTs
Trading NFTs is similar to trading stocks. You have to look for an NFT at a low price which you can speculate will become more popular and increase in price later. When the NFT’s value goes up you can sell it and gain profits. The value of most of the NFTs is determined in terms of their popularity and how trending they are. As a trader, you have to be able to quickly spot trends in the popularity of various NFT collections.
Mint your own NFTs
The most direct and easy way to make money with NFTs is to create your own NFTs and sell them. The process of creating an NFT is called ‘minting’. Various NFT marketplaces allow you to create your own NFTs and sell them. To make your NFT eligible for sale you need to list it on the marketplace. Once you have listed your NFTs on a marketplace, you wait until someone buys them. You need to create hype and make your NFT desirable to increase your sales. This is usually done through social media marketing. If you manage to sell an NFT, crypto from the buyer is transferred to your wallet, and the NFT is transferred to the buyer’s wallet.
NFT Royalties
The NFT tokens are software developed on blockchain technology called smart contracts. Now, some creators include a code in an NFT smart contract that pays some crypto to them every time it gets sold. This is known as a royalty. Many NFT marketplaces cap the royalty at 10%. You can benefit from NFT Royalties, only on the assets which are traded several times as you get a royalty only when NFT changes ownership.
NFT Flipping
Another strategy to earn good money with NFTs is flipping. In this, the investor will buy an NFT from an online marketplace and then will sell it to another person, at a profit.
This is a short-term strategy that only works if the investor can trade an NFT that has less value in the marketplace.
To buy an NFT token that is suitable for this strategy, filter your options well with the help of your marketplace. Consider sorting each collection by its popularity and trading volume. Then, compare the floor price of the NFT collection with another marketplace. If the NFT is available on the chosen marketplace at a lower value, this could be a great flipping opportunity.
NFT HODLing
It is one of the best strategies to use if you are considering making good money with an NFT. For those who are unaware of the term, HODL stands for ‘Hold On for Dear Life’ and was made famous by retail traders during the GameStop short squeeze of 2021. Since then, the term has been used to describe the investment strategy which means that you do not sell, unless your asset experiences the uptake necessary to generate price momentum. Therefore, HODLing can be a great way to make money with NFTs.
Also read: A Beginner’s Guide To NFTs: How To Generate And Sell NFTs?
Best NFT marketplaces to earn money
We have listed the most popular NFTs marketplaces that offer you the best tokens to make money. Take a look :
1. OpenSea
It is the largest NFT marketplace in terms of the trading volume. The marketplace has a huge range of assets and allows excellent offerings to create and mint NFTs. Most traders consider it to leading the way in NFT sales.
It is also a good choice for beginners as it supports more than 150 cryptocurrencies. It was built on the Ethereum blockchain and also supports other blockchains like polygon and Klatyn. It allows users to buy, sell and mint NFTs in various categories like music, Art, Digital collectibles, Domain names, Sports, Photography, Trading Cards, and Virtual Worlds.
Also read: What Is NFT Art? A Detailed Guide on How To Create And Buy NFT Art in The Marketplace
2. Binance
Binance is a well-known platform for offering a low-cost cryptocurrency exchange, and its NFT marketplace also offers low-cost NFT creation and selling. Binance allows you to purchase NFTs with only a 1% transaction fee using the Binance Smart Chain or the Ethereum blockchain.
The Binance NFT Marketplace has a wide range of NFTs in several categories, including, Art Sports, Entertainment, Gaming Collectables, Esports, and Mystery Box. the marketplace is well accessible and has a well-laid-out and easy-to-navigate platform. For people who already have a Binance crypto account, the NFT platform is available without the need to create a new account. Binance also offers a ‘Mystery Box’ feature in which users can purchase a box that has an undisclosed NFT which could be of some value.
3. NBA top shot Marketplace
Focusing exclusively on basketball NBA Top Shot offers limited edition video clips, play highlights, and NBA art, that one can trade, sell, and purchase. This NFT marketplace was built by the NBA using the Flow blockchain. The NBA manages this NFT marketplace and has exclusive rights to these video clips.
Users can purchase Moment NFTs with credit/debit cards or select cryptocurrencies, such as Bitcoin, Ethereum, Bitcoin Cash, DAI, or USDC. you have to pay a selling fee and a transactional fee to purchase these assets, whether you’re buying with a credit card or cryptocurrency.
Final thoughts
Like any other marketplace, trading in the NFT marketplace does not always guarantee you high profits. However, if you apply the correct skill set, use the above-mentioned strategies and look for the best NFT marketplace, then it is not difficult to earn good money through NFTs.
If you are new to the marketplace and do not know how to buy or create NFTs then read the forex broker reviews guide on how to buy NFTs on coinbase marketplace and other popular marketplaces.
FAQ’s
Q1. Can you make money with NFTs?
Ans: Yes, it is possible to make money with NFTs Make sure you conduct plenty of research before investing in an NFT and apply a strategy while buying an NFT. Also, When looking for the best NFT to make money, be sure to look across multiple projects.
Q2. How to buy NFT on OpenSea?
Ans: To buy NFT on OpenSea, connect with a crypto wallet and add some funds to it to trade NFT. Then, log in to your OpenSea account either through the website or app, look and filter for the trending NFTs and make your buy.
Q3. Can NFTs make you rich?
Ans: NFTs have undoubtedly made people rich in the past. For example CryptoPunks So there’s a possibility for opportunities that can make someone rich by NFT tokens
