NFT: an electronic "tag" or a way to make money?
NFT is an electronic "tag" that records the current owner in the blockchain. In theory, it should represent the sole owner of the asset to the world, but it is quite an exciting technology with many ways to make money.
NFT in a nutshell
All technicalities aside, NFT is an electronic "tag" that records the current owner in a complex system called the blockchain. In theory, this "tag" should represent the sole owner of the asset to the world, but it is quite an exciting technology with many ways to make money.
NFTs are traded on specialized marketplaces such as OpenSea or Magic Eden. The purchase requires a decentralized wallet.
Ways to make money on NFTs
- Trading. Buying and selling NFTs is the main way for the crypto community to make money. Buy low and sell high. If you accurately analyze and select a project for purchase, you can earn x2-x1000 from the initial investment.
- Create and sell your NFT. This method is suitable for solo artists and a team of people alike. An essential component of earning is creating and supporting an active audience that will buy these NFTs from you in the future. First, we generate hype around the project and then sell it.
- NFT games. Not so long ago, there was a project called STEPN, a typical NFT game with Move2Earn elements. It was necessary to purchase NFT sneakers to earn money by covering distances.
- Earning without investments. With this method, it is necessary to actively participate in the project's development. Owners of NFT collections are interested in word of mouth, so they are ready to give away prizes and NFTs for positive PR on social media and the crypto community.
So what to choose?
Each method is self-sufficient, but you can combine them. For example, the last method perfectly complements the first since active participation in the project's development allows you to better understand the mood of its community, which will help you invest in the right way.
