There are two main ways to make money on NFT: mint and sell your own collection, or just purchase the existing one and resell it when the price gets higher. Today, we will explore the second way, which requires less technical skills and better suits beginners.
How to invest in NFTs
In this context, investing in NFTs means purchasing a token or an NFT collection with the aim to resell it later for a higher price.
To start investing in NFTs, you need 3 basic elements: an NFT marketplace, a crypto wallet and some amount of Ethereum. There are many NFT marketplaces: Binance NFT, Rarible, and OpenSea — the biggest one and the best for start.
1) Register a new account on OpenSea (or another platform, as you wish).
2) Create a crypto wallet and purchase some ETH: you will need it to pay gas fees.
3) Link your crypto wallet to your OpenSea account.
4) Purchase your first NFT on auction or for a flat fee. Note: the final price on auction may be much higher than the initial price.
Best investing strategies
If you don’t know how to start, try one of these most popular strategies:
Invest in NFT digital art
NFT artworks remain the most widespread tool for digital investments and making money. By investing in NFT digital art, you can sell them to earn profits when their value increases in the future.
Invest in NFT games
Play-to-earn games are rapidly gaining popularity among both gamers and investors. Gaming NFTs are represented as items such as skins, guns, collectibles, etc, which players are just chasing after. They can be traded on in-game marketplace or outside platforms, and rise in price as the game evolves.
Invest in NFT startups
There are a lot of promising NFTs startups in the crypto market. Most of them have low prices at the start, but have all chances to become to-the-moon projects, and make something revolutionary.
NFTs for investing
Of course, the best digital assets for investing are well-known and acknowledged collections such as Crypto Punks or Bored Apes. Even Justin Bieber has purchased an Ape…for $1.3 million!
So, the main issue for beginners is a pretty high cost of these NFTs. However, there are thousands of less famous but ambitious collections, which can also be a good investment.
Before choosing your first NFT, do some analytics: explore leaderboards of trending collections to find out which performs best, and which attracts the most investors’ attention. Check hashtags of these collections on Twitter to see what other people think about them. Try to find more information about the developers, and if they have already created other successful projects.
Making money on NFTs
When you have purchased your first NFT, the next thing you need to do is to select the most suitable way of earning profit. Let’s explore some.
Trading
NFTs can be treated just like stocks: purchased for a lower price, and then sold more expensively. However, trading may seem risky amidst the ongoing bear market. For this strategy, knowing when to sell is crucial.
Renting out
Renting out is an effective way to earn money from NFTs without losing ownership. You can just loan your NFT to someone for some time in exchange for money.
Staking
NFT staking is putting your tokens to work on the blockchain for a reward. We have already described this method in one of our previous articles.
Conclusion: Are NFTs a good investment?
Although digital assets are often thought of as a risky venture, we can witness how NFTs are conquering the world step by step. They appear in traditional games, in promo campaigns of popular brands, even celebrities create NFTs to hype. Such interest shows that the future of NFT will be very promising and exciting.
Today we are in the middle of another bear market, when the prices are low and everything seems hopeless. But each downtrend is followed by a new successful cycle. So, don’t miss your opportunity to catch this train!