Cryptocurrencies have exploded in recent years with an estimated 10,000 currencies in circulation as of 2021. NTFs, or non-fungible tokens, are one form of cryptocurrency that has recently started to catch fire due to the individuality of the tokens and how they can be used. For those interested in entering the crypto market and purchasing crypto like Polkadot, here are 10 ways to make money with NFTs:
1) Find a promising new NFT and invest early before the token takes off. Many of the most valuable NTFs were initially offered at a low price, just like a new stock offering, and their value rapidly increased in a few weeks or months.
2) P2E, or play-to-earn, NFT games let players generate rewards usually denominated in the game’s own currency and can be kept, invested and exchanged for other NFTs or fiat money.
3) Earning interest on NFT gaming rewards is an indirect way to make money on the rewards that are earned in a P2E game. Like fiat currency, rewards are deposited into a crypto savings account to earn an annual yield that is typically higher than what can be earned in traditional banks.
4) HODL, standing for “Hold On for Dear Life,” is an investment strategy that came into the spotlight during the 2021 GameStop short squeeze of 2021. Succinctly put, HODL is simply a strategy of not selling regardless of what happens. If you can take the pain, this can be a great way to make money with NFTs.
5) “Flipping” is a term coined by real estate investors and refers to buying low and then selling high after rehabbing the property. While there in noting to “rehab” with NFTs, the idea is to buy and sell in the short term and it is the token’s digital art appeal that will increase its short term value.
6) Trading NFT like stocks is similar to HODL and flipping, but the process is geared toward making incremental gains between the short and long term.
7) Staking is using a mechanism to tie up someone’s digital asset, usually on PoS blockchains that will provide you with a payout. Staking is a rather difficult concept to master and takes a bit of research to pull off, but it works to validate transactions similar to the way crypto holders stake their tokens.
8) Mint your own unique NFT in the form of digital art or music and place it on the blockchain where it can be traded. However, because of the tremendous growth in the crypto market, competition among NFT creators is strong so you will need to have a really good idea to succeed here.
9) Creating royalties are tied to minting your own NFT. Many of the most expensive, and sought after, NFTs have an embedded royalty percentage that provides the creator with a passive revenue stream from the token being resold. Most NFT royalty levels are set at less that 10 percent, but can go higher.
10) Investing in companies that have exposure to NFTs is similar to investing in gold by investing in a mining company. By buying stock in companies that have exposure to the NFT market, you will benefit from the company’s long-term growth.