Investing in NFTs is a promising area of work. But why do some people earn vast sums of money, while others get nothing? Let's have a closer look at what you need to know to invest effectively in NFTs.
Firstly, it is worth understanding that NFTs are not just pictures. They are photos, videos, GIFs, or images that are linked to the blockchain. These artworks have a certain price, which is reflected in the blockchain. Therefore, it cannot be faked. Another interesting feature of NFT is that it has a history. You can always find out who created the artwork, bought or sold it, and what happened next. Therefore, NFTs can be collected, sold, and, of course, created, even played with, as it is done on Chainers.
What is the best way to sell your work?
Having a ready-made NFT, its author is faced with a choice of how to value it. There are two options:
- sale through an auction;
- sale at a fixed price.
The first option is certainly preferable because the cost of an NFT can vary. Besides, authors themselves may not know the true price of their works.
Marketing helps to increase the value of NFTs. For example, you can give away some of the work for free to your followers on messengers and social media. To receive NFTs, for example, they have to like and share the information with their followers. You can also contact a well-known blogger or order advertising on Google.
How to make money on NFT?
If you are not an artist and cannot create visual content, it does not mean that there is no opportunity for you to earn money on NFT. For example, you can use the following methods.
1. Airdrop is a free giveaway. The goal is to draw attention to the author. That is, you give something away for free to sell something else. In this case, both the author of the work and the person who received it for free will benefit. After all, over time, the price of the NFT you received can increase significantly.
2. Speculation. We buy cheaper and sell more expensively. However, to do this, you need to follow the market and have a flair for promising works of art, the value of which can grow.
3. Play-to-earn, that is, the creation of NFTs through a game, during which the player receives cards, properties, armor, etc. They can be leased or sold on the secondary market.
4. Drop is the first sale. This method can be profitable if you are well-versed in the market. In this case, you should be the first to buy the NFT directly from the author and sell it more profitably over time.
5. The supply of liquidity using NFTs is actually a set of digital assets that are locked in a smart contract. The liquidity pool has many functions, but the main one is lending.
6. Farming. This method involves the use of several decentralized financial services protocols. For example, income can be taken from one platform and invested in another.
7. Staking. This is a new type of earnings on NFTs. The income is passive. You receive a percentage of the use of the works you own.
NFT allows you to monetize your creative ideas and social capital. This way, you can sell, produce, collect, and even crowdfund NFTs at the development stage. There are really a lot of opportunities even for people who do not create artwork on the Internet.
