How to Make Money with NFTs in 2023-Top 8 Methods

The NFT space has shown exceptional growth over the last two years. Digital arts, collections, and even social media posts and tweets have been sold for millions of dollars. Given this popularity and growth, many investors are trying to figure out different high-return opportunities in the space. These cryptographic assets are based on complex blockchain technology, however, that can be very confusing and overwhelming, especially for new investors.

Popularity of NFTs

NFTs got mainstream momentum in 2017, and since then, The NFT market generated around $24.7 billion worth of organic trading volume in 2022 across blockchain platforms and marketplaces. The popularity of NFTs has exploded in recent times and there are over 1 billion NFTs across different marketplaces.
A recent survey by Beat has revealed that women are also taking interest in NFTs: NFT ownership among women has increased from 24% in the first quarter to 34% in the last quarter of 2022 and women own crypto widely.

Top 8 methods to make money with NFTs

In this guide, we will discuss different methods to make you understand how to make profit using NFTs

1. Understanding NFTs

NFT are Non-Fungible Tokens. These tokens are non-fungible — they cannot be changed or duplicated. An NFT is like a piece of art that can be sold for cryptocurrency or fiat currency and this trade is recorded on the blockchain.

2. Making and selling of NFTs

This is the most basic and common way of making money in the NFT space. If you are an artist, musician, or celebrity, you can create your own NFTs and trade them on online NFT marketplaces where you can create, list, and exchange your cryptographic assets. Some popular NFT marketplaces include:

I. Blur

Launched in October 2022, Blur is an NFT marketplace and aggregator. This NFT marketplace has already claimed the top position among all marketplaces.

II. Opensea

The world's first and largest NFT marketplace, Opensea is a platform where users can buy, sell or create NFTs. It’s a non-custodial platform: users have full control over their wallets, and they directly interact with each other to make trades or exchanges.

III. Rarible

Rarible is also a popular NFT marketplace with different NFT collections. It is easy for beginners to use, and it has advanced tools and features for experienced NFT traders.

IV. Magic Eden

Launched in September 2021, Magic Eden is already among the top NFT marketplaces. Initially developed for the Solana blockchain only, it has expanded since then and supports Ethereum and Polygon.

3. Royalties

Artists and creators can enjoy lifelong royalties on their NFTs even after selling an NFT to someone else (only if the creator imposes those terms). Royalties are a specific amount or percentage that is paid to the original creator on every secondary sale of these digital assets. The royalty payment rules are coded on Smart contracts and royalties are a great source of passive income for the original creators.

4. NFT (Play-to-earn) games

Play-to-earn games are becoming a feasible source of income for many people. Many new NFT games have play-to-earn features which allow players to earn different rewards while playing games.

Players are usually incentivized in the native token of the game. These tokens can be used to purchase in-game items like guns, and amour or converted to fiat currency.

5. NFT Renting

We already know that NFTs are non-fungible — they can't be changed or duplicated. But did you know that you can rent them out like any physical asset like real estate? Yes, you read that right. Renting out NFTs is another source of passive income for NFT owners. They can simply rent these NFTs out in exchange for money for a specific period without losing ownership.

6. Staking NFTs

With the emergence of DeFi (decentralized finance) and its integration with non-fungible tokens, NFT holders can now create a yield by locking or staking their NFTs in a DeFi protocol smart contract. This provides an opportunity for NFT holders to gain rewards using their idle digital assets.
All you need to do is to connect your web3 wallet with a NFT staking platform; however, not all NFTs can be staked. Some platforms allow staking only when you buy their native token.
The platforms that facilitate the NFT staking feature include:
• Quint is an NFT marketplace with super exciting NFT staking features.
• Mobox is a metaverse gaming and NFT staking platform allowing users to “crate” their NFTs for yielding.
• NFTX is an all-in-one liquidity protocol where users can buy, sell, exchange or stake their valuable NFTs.
• Mutant cats. When you buy Mutant Cats NFTs, you have the option to stake these NFTs to earn rewards in the form of its native token “$FISH”. You can earn 10 $FISH per day by staking just one Mutant Cat NFT.

7. NFT HODLing

NFT HODLing is also one of the best strategies to make money out of NFTs. The term” HODL,” often used on social media and other crypto platforms, stands for “Holding on for dear life”. It means that you should stick to your investment for the long term no matter what the conditions are.
There may be potential risks associated with this strategy; however, when carried out strategically and effectively, it might be an excellent way to generate money with NFTs.

8. Invest in new promising NFT projects

Buying promising new NFTs in the early stage is an excellent way to make money. These projects are initially coined at a low price, but they gain value as time passes. Usually, NFT flipping has a short period, and investors can make a quick profit by the NFT flipping method.
Cryptopunks is an excellent example of investing in new NFT projects. In 2017, their price ranged between $ 1 and $ 34. Due to their immutability and historical significance, they became extremely valuable as time passed, with a punk even selling for $24 million.

Future of NFTs

The future of NFTs is uncertain just like cryptocurrency. While NFTs have gained significant adoption and are being used in several play-to-earn games, there are some concerns about their regulations. However, they are not going away any time soon.

With more and more innovations and growing scope, it can be predicted that they will be a crucial part of the upcoming digital world

Conclusion

There are plenty of ways to make money with NFTs. As the NFT space is continuously evolving and growing, the future will offer easier ways to make a fortune out of NFTs. However, it is necessary to choose the best platform and do your research before making any investment decision.