Did you know the best way to invest in NFTs is to find products that you enjoy and know you’ll keep forever?
But that’s easier said than done.
In this quick guide we’ll give you 3 ways to make money with NFTs and we’ll lead off with two methods you may not have thought of.
Renting NFTs
Many NFTs come with a particular utility. As such, renting them out can be a profitable passive income for the NFT owner. Renting an NFT differs from project to project but the concept is the same. For example, you may own digital space in Decentraland that you could rent out for concerts or events. This method is perfect for artists and average folks alike as it can provide lifetime royalties. To rent an NFT, one must first verify that it is legitimate.
In this system, the NFT owner enlists the digital asset on a marketplace. Interested parties search for the NFT and initiate the renting process. A smart contract is created detailing the rental terms and conditions. This contract contains details of the rental period and collateral requirements. Once both parties agree, the smart contract becomes operational. The borrower can then use the NFT to generate a passive income.
Staking NFTs
Staking NFTs to earn money from them is one of the best ways to maximize your earnings from this digital asset. In R-Planet, players can stake NFTs to earn the platform native token Aether, which is used to create the four basic elements of the game. These elements are necessary for further advancement, and they can be used to create new items and materials. The longer you hold NFTs, the more reward you will receive.
The first step in staking your NFTs is to find an exchange that supports this practice. The exchange will usually have a large NFTs exchange to offer, but if you want to stake your NFTs in your own exchange, you need to open a wallet with a reputable wallet provider. The stake requirement varies per project, but it will vary between 10 and 50,000.
Buying NFTs at a discount
Another, and most obvious way to make money from NFTs is to buy them at a discount and sell them at a higher price. The idea is to make as much profit as possible, but you should buy at a discounted price, which should be at least ten percent below your original purchase price.
Then, reinvest your profits and do not spend them on non-income-generating items. Another way to make money from NFTs is to get involved in the NFT community and participate in discussions about different aspects of the market. This will spark new ideas, friendships, and potentially help you make money from NFTs.
As long as you are aware of transaction (gas) fees, you should buy your NFT at a discount. However, keep in mind that buying them at a discount is not always profitable because transaction fees are high. For example, you might have to pay $50 or more for a transaction, which will eat into your profit.
Final thoughts
As with any investment NFTs require research and vetting. With so many projects launching every day it is hard to keep track and weed out the stars from the junk. NFT Tools like Rarity Sniper can help you refine your research and build a strategy for success.
Jay Speakman is a technology writer based in San Francisco, California. He writes on the topics of blockchain, cryptocurrency, DeFi and other disruptive technologies. Clients include Avalanche, Be[in]Crypto, Trust Machines and several blogs devoted to blockchain gaming. He will not rest until fiat currency is defeated.
