Within the last year alone, the market for non-fungible tokens has grown from mere million-dollar sales into billion-dollar sales, crossing over $25 billion in 2021. If you are eager to learn how one can make money using NFTs, this guide gives insight into eight effective methods of profiting within this unique digital asset space.
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- Invest early in promising new NFT projects.
Probably the most effective way of making money with NFTs is investing in new projects at their launch. You will be able to buy NFTs at a much cheaper price compared to what their worth will be, sometimes significantly higher, if the project goes well. A perfect example could be the highly popular Bored Ape Yacht Club launched in April 2021; early adopters earned huge returns on investment when the collection’s popularity soared. Example Opportunity: For example, new projects such as Tamadoge and Battle Infinity have tremendous potential. Tamadoge allows the ability for digital pets to be minted as NFTs and rewards can be earned through simply playing with them. It can be used to gain access to a fantasy sports game where NFTs are involved, and simultaneously, allow trading in its marketplace.
- Participate in Investment Funds Focused on NFTs The investment-focused funds in NFTs provide a structured approach in the pooling of resources to gain on high-growth opportunities. Uncharted links NFT sales to a High-Frequency Trading fund through the issuance of quarterly profit-distribution precepts to its holders. You can receive passive income by investing in NFTs affiliated with well-managed funds, without dealing in their management for single assets.
Key Feature The Uncharted high-frequency trading fund utilizes leading-edge algorithms to achieve returns of up to 400% per year, paid quarterly to the NFT holders over a period of 36 months.
- Play-to-Earn (P2E) Games
Rewards for participation and achievement in P2E games come in the form of in-game NFTs, ranging from characters and weapons to virtual property, each carrying some sort of real-world value. In the case of Battle Infinity, there’s a chance to win IBAT tokens and NFTs that can be utilized within its sports games or traded. Advantages: P2E games attract those who would like to make profits through NFTs, themselves requiring no capital investment in the first instance. That is a source of access to the greater audience.
- Create Passive Income with Reward-Paying NFTs Sometimes, passive income and other valuable perks come to the holders of certain NFT projects. A fair example is Lucky Block, where holding an NFT in their collection gives a chance to a person to win prizes either in cryptocurrency, real estate, or luxury cars. The ability to generate a regular passive income can be created through regular token rewards, with exclusive access to prize draws.
This is the highlight of Lucky Block’s Platinum Rollers Club NFTs: they give lifetime entry into prize draws, which means ongoing potential returns for the NFT holders.
- Flip NFTs for Quick Profits
NFT flipping usually goes this way: one buys an NFT at a low price, sells it later on with a higher price to take advantage of the market demand. Keen awareness of the market is needed to achieve success in flipping, as it should be able to present a chance of spotting undervalued assets. On platforms, such as OpenSea and Launchpad.XYZ, investors can browse by collections sorted in price trend, popularity, and trading volume that may help in discovering potential flips. Pro Tip: Diversify and spread your investments across several low-cost NFTs to increase the chances of profitably flipping while at the same time minimizing the risk tied to any one asset.
- HODL NFTs for Long-Term Gains HODLing-NFTs can be considered a long-term alternative to the ups and downs of short-term trading. Rewards can be achieved in this manner, if an NFT collection gains value over time. The same approach works when the investor is willing to wait for a particular NFT to become more desirable. During bear markets, a lot of NFTs are cheaper and can be purchased with much upside. Example: The majority of collections are currently well below their highs and represent a good time to invest in quality NFTs that will gain value as the market recovers.
- NFT Staking for Income
NFT staking refers to the process by which investors “lock up” their NFTs in return for periodic rewards, normally in the form of that project’s native cryptocurrency. For example, Quint offers super staking that prizes a luxury yacht or a valuable NFT. This way, investors can create a passive stream of revenues without selling the NFT. Hence, much flexibility would be added to their investment approach.
The benefit is that the possibility of asset appreciation, coupled with periodic income, makes staking ideal for investors who would want to achieve consistent returns without necessarily active trading.
- Mint and Sell Your Own NFTs
Minting refers to the creation and launching of new NFTs on the marketplaces for sale. Artists, musicians, and creators can monetize their digital works by minting NFTs that correspond in their unique content. The fees to mint an NFT vary based on the cost of blockchain transactions but recent updates to Ethereum’s proof-of-stake model have made the process a bit more affordable.
Pro Tip: Launchpad.XYZ is one such platform that makes minting and listing of your NFTs easy as pie. In this way, all the power for pricing and timing remains in the hands of you, the creator. Best Platforms for NFT Trading and Investment One would look to Launchpad.XYZ for ease in accessing a number of NFT collections and tools. The whole change comes with an interface that is so easy to navigate, even for beginners, filters that refine the search, and a wide variety within the NFTs. It does support a decentralized experience, connected with your wallets, to make sure that you have full control over all of your assets. The perks of the platform are that Launchpad.XYZ offers instant and auction-style listings, from digital art up to game assets, which literally fit the needs of any investor. Conclusion NFT investments can be very lucrative, provided one does their research and puts together a real strategy. In certain cases, that’s about getting into early investments; sometimes, it is about P2E games and just flipping for quick gains. There is no single way to invest in NFTs; investments into NFTs are very diverse with varied strategies. The best entry point for new investors to these platforms could perhaps be newly launched collections like Tamadoge or Battle Infinity. With the proper approach and various strategies, NFTs have many exciting opportunities for profit in store.
