NFTs Mania: How to Cash in on the NFT Hype Train

The technology behind non-fungible tokens (NFTs) might be complex to grasp for most, but making money from NFTs doesn’t have to be as difficult.

With a $7 billion NFT marketplace that’s growing day-by-day, NFTs have proved to be somewhat of a gold mine — and one that everyone wants to claim.

In this post, we discuss 3 ways you too can trade your art, create NFTs, and cash in on this latest crypto trend. Without wasting too much time, let’s dive in.

1. Create an original digital work of art

Now, digital art pieces can take any form — a picture, video, graphic, audio file, GIF — indeed any item that can be tokenized. The key here is that you must own the copyright of the piece of media and it must be the original copy.

Next, you’ll want to list this digital art piece on an NFT marketplace like Rarible.com. Other notable listing sites to consider include OpenSea, Axie Marketplace, SuperRare, and Nifty Gateway.

2. Rent Out Your NFTs

What if you’re a digital creator or NFT investor and don’t want to sell your collectibles? That’s fine too. You can still make money by renting out your NFTs.

This is particularly true in the case of card trading games where players have the option to borrow NFT cards. Smart contracts are entered upon and set out the respective terms and conditions of these NFTs renting situations.

Typical platforms that would-be borrowers can find NFTs to borrow include reNFT and NFTfi. On their website, the reNFT team encourages potential lenders to generate passive revenue by temporarily renting out their NFTs. NFTfi, on the other hand, touts itself as a “marketplace for NFT collaterised loans.”

3. Establish recurring NFT royalty payments

Nearly every NFT marketplace has put measures in place that allow the original creators to make recurring passive income each time their NFT is sold on the secondary market.

Plaftorms like Rarible.com provide you with an optional function where you can determine how much you wish to make in royalty fees during the mining process.

Owing to smart contract technology that forms the basis for NFTs transactions, original creators will be automatically accorded their royalties. As a digital artist, this means you won’t have to keep tabs and chase up your royalty payments.

The Bottom Line

NFTs are still regarded with skepticism by conservative investors. Consequently, the average NFT marketplace is often viewed as high risk and unregulated.

If you’re keen however to get your feet wet trading NFTs, it is advisable to do thorough due diligence.

Try to obtain as much information as you can and discuss your investment options with qualified and seasoned experts before making major buying decisions. The possibilities of NFTs are immense but so are the dangers.

This is the fourth post in a series on NFTs.