Ways to make revenue from NFT
The non-fungible token is a digital asset that may be sold and traded, resulting in creating a new market and revenue stream. In this post, we'll go through three revenue-generating tactics for NFTs.
If you're craving to dive into this new field, we've put up a simple list of titles to explore before making investment decisions.
Creating Your Own NFTs
If you're an artist with the vibes and a desire to express your artworks, this is precisely what you should do to make a new revenue stream to encounter.
Some basic steps to create your projects:
Define your concepts
In NFT, concepts can be anything such as an artwork, an article, music, or even a meme like Nyan Cat, which sold for 300 ETH. A hundred dollars in income was generated in the music NFT, which included artists such as Jacques Greene, 3LAU, Grimes, Steve Aoki, and others.
Beeble's "The First 5000 Days" began with him posting his work on Instagram on a daily basis. When his firm became stuck, he looked at cryptocurrencies, blockchains, and non-fungible tokens. As a result, the 'everyday collection' concept was born, and his artwork sold for $69,346,250 (1).
Do you have ideas but are unable to sketch or express them in different concepts? Hiring art directors or artists could be a good way to keep your ambition alive. However, in-depth knowledge of cryptocurrencies, blockchain, and NFT is required, as well as defined strategies.
Trading platform
NFT trading platforms are digital platforms that allow creating, buying, and selling NFT. Users can mint, sell, and buy NFTs on the marketplace or sell in the NFT storefront for those who want to buy NFTs. As a consequence of the NFT boom, several of these new trading platforms have developed. We've previously written an article outlining the benefits and drawbacks of some must-know NFT marketplaces that you should be aware of. Platforms have different gas settings and service rates, so customers must choose the most cost-reasonable option.
Building community
The project's community may be considered a crucial factor in the project's success. A strong community may help to raise the project's visibility and even get support from the big sharks. Successful NFT communities have a cheerful Discord (or Telegram, WhatsApp, etc.) user base that interacts with one another, shares their enthusiasm on social media, and contributes to the project's success. On the other hand, lack of communication, inability to engage, and sharing among construction stakeholders and the community will make marketing and expressing project ideas difficult.
Despite the fact that community is an important component, it is not the only one way to success. For example, Goblintown has had substantial growth despite the lack of a community platform other than Twitter. However, we'll need more time to evaluate whether Goblintown can be sustained or if it's simply a craze.
Smart contract
All NFT collections are built on the basis of a smart contract. This contract may be used to validate the validity of an NFT or your complete NFT collection. Suppose you have minted "trait-sniper-is-awesome.jpeg," and someone uploads this .jpeg to their website. There is no way to validate the file's legitimacy. Using the smart contract, creators may sign a unique token for their NFT. So the NFT asset's evidence of validity is complete.
Launching
Choose a day randomly or make a potential strategy to brighten your launching project day. Public price and mint price are important to catch your audience. It must be aligned with your business objectives. For entry market projects, you can read ‘How TS can support the NFT project launching’ to see more.
Pros
Own your business.
Huge profit if the project is successful.
Cons
Take time and high cost.
High risk.
NFT Trading
NFT trading is basically buying an NFT with an early bird price and selling it for a better price via an online marketplace. Trading can consider the most common ways to make revenue from NFT.
So why do people invest in NFT? The basic investment principle of buying cheap and selling high also applies to NFTs. Market players may buy low NFTs early and sell them later for a profit. NFTs might be seen as a risky investment that could go to zero. On the other hand, many users purchase NFTs for amusement or to bring them joy, rather than as investments. For example, you acquire an NFT such as a concert or sports event ticket for enjoyment.
Once you decided on suitable projects to invest in, traders have two ways: minting during pre-sale/public sale or buying in the secondary markets such as Opensea.io, Trait Sniper, etc. Both methodologies are detailed instructions in ‘How to make money buying and flipping NFTs’.
Pros
Easily to access: Tokenized assets can be purchased by anyone. Asset ownership that has been tokenized into an NFT can be transferred more simply and effectively all over the globe.
With the right strategies and investment, you can make a lot of money.
Cons
The hype and general misunderstanding around NFTs might lead tokenized asset prices to be inflated and volatile.
We have already published an article highlighting the advantages and disadvantages of some essential NFT marketplaces that you can research for trading NFT.
Play-to-Earn (P2E) NFT Games
“Play-to-earn” is a popular keyword at a time. GameFi creates in-game assets which can trade on the marketplaces. NFT game items can be characters, weapons, pets, houses, etc. - depending on the game platforms. Players are required to charge for entry into the game. Then, they will upgrade their assets, complete tasks, or combat with other players (2).
P2E developed during the Covid-19 pandemic period when people were unable to work outside and get bored. Connecting game economics to real-world money, as well as making digital assets ownable and transferable, has altered conventional dynamics, attracting a large audience. As a result, the P2E has onboarded a whole new class of players, different from traditional gaming.
Some best P2E Games: Axie Infinity axs, The Sandbox sand, Decentraland mana, etc.
Pros
Enables more access to blockchain technology.
The balance between hobby and finance.
Cons
The high price of entry.
Potential for financial loss: P2E requires many hours of playing before getting the returns. You can lose the investment if you do not have depth insight into the game's rules well before starting.
NFT has used the full potential of Blockchain in a way that has never been done before. By establishing digital assets that can be traded and new investment opportunities, it has the potential to disrupt the collectibles, art, design, sports, and fashion industries. Ways to earn from NFT are wide. However, careful research and analytics will open new opportunities.
DISCLAIMER: This is NOT FINANCIAL ADVICE; we only evaluate NFT information based on the data given by the community and based on our perspective to help collectors and snipers find the best suitable projects to jump in. Remember to do your own research!