How To Make Money with NFTs in 2022
After taking the globe by storm, everybody has an opinion on non-fungible tokens or NFTs. Some call it a scam, some say it is revolutionary, and others are curious as to what it really is.
However you feel about NFTs, even if you do not know what they are, you should know that you can make money with NFT. And if you're interested in knowing how then keep reading further.
Before learning how to make money with NFT, you must first comprehend what it entails.
NFTs are collectibles or digital assets which are stored on the blockchain. Blockchain is a database where you're allowed to store collectibles, objects, or assets with sustainable ownership.
These digital assets stored on the blockchain as NFTs can be anything starting from a video, an artwork, a picture, a song, etc. Every NFT is distinctive and the ownership of it can be authenticated on the blockchain. Nobody can tamper with the history of activities or transactions.
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How To Make Money From NFT?
There are several ways to make money using this technology. They are as follows:
- Renting Your NFT - Just as in the real world, it is also possible to make money with NFT by renting your digital assets. For instance, in the gaming world where people are constantly playing and creating, people owning in-game every asset and object in the virtual realm can be accounted as NFTs. If you're unable to play games for some time, why not consider renting it to someone for them to utilize?
To do so, all you need is to create a smart contract with a lock and collect the rent. Once the rent period is up, your NFT will automatically return under your ownership and the transaction will be completed.
- Staking Your NFT - It is crucial to secure any network from malicious activities so that the network runs safely. Staking is the mechanism of updating your current network's state to its latest version.
As a user of the network, you can update your NFTs and lock them for a given time to earn passive income.
- Flipping Your NFT - Flipping NFTs is one of the profitable ways to make money. The process of buying something and reselling it in mint condition at a higher marketplace is called flipping. However, not every NFT can be flipped. You also need to wait until the NFT project is high on demand until you sell it.
To make a huge profit, you need to do proper research and analyze the collectible.
- Earning Royalties With NFTs - If you want to know how to make money from NFT, you can also do it as a creative individual. With the help of blockchain technology, artists can earn from their art's secondary sales. The smart contract helps in keeping track of how well the artwork is performing.
Blockchain technology can be used as a platform more than just for selling and buying pictures. We've barely scratched the surface and the possibilities are limitless. All you need to do until then is keep learning and make the best of the situation.
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