In less than a year, NFT’s total sales value went from $ 250 million to $ 2.5 billion, and in the last months of 2021 la frase “how to make money with Nft” was among the most popular search keywords on Google worldwide.
Many factors contributed to the explosion of the Non Fungible Token phenomenon: the driving force of the art world, in particular with the auction sale of the tokenized work of Beeple for over $ 69 million; the spread of token collections, such as CryptoPunks, whose avatars, based on randomly generated pixels, they were sold for millions of dollars, and the role acquired as a new status symbol. The latest example is that of actress Gwyneth Paltrow, who replaced her profile photo on social media with one of the NFTs from the BoredApeYachtClub collection.
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Returning to the most typed question on Google, that is “how to make money with Nft?”, One would say that there are mainly two ways: create the Nft and put them up for sale, or fare trading.
However, the first step in trying to make money with NFTs is to understand them. As evidenced by Marco Montemagno, which on February 2nd brings Monty Lab to its debut, the first Italian project of Utility Nft, “there is a rather high barrier to entry. With social media it was easier, just register. Here you need to have a wallet; acquire cryptocurrencies, among which Ethereum is the dominant one; do minting, that is to coin an Nft. In short, even language can be an obstacle “.
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Choosing the right platform
After a study phase, necessary to enter the mechanism, you can choose your own strategy. For content creators (digital artists, musicians, creatives), the best way is to coin the NFT and put it up for sale on one of the available markets. To juggle the different platforms it is important to take into consideration the main features (here we will limit ourselves to analyzing some of the main ones). OpenSea is used by logging in with a wallet like MetaMask, it supports Nft based on the Ethereum blockchain and payments are made using Eth; the sale takes place on an auction basis, with increases of 5%. SuperRare includes an initial interview, in order to start selling works on the platform, here too the standard is payments in Eth and the platform retains 15% of sales on the primary market and 10% on the secondary market. There Mintable main difference is that the standard is also the Ziliqa blockchain and therefore it is possible to pay in Zil as well, while on Nifty Gateway, purchases can be made using a normal credit card. Once the market is selected, the product is put on sale which, as the art world teaches, will be all the more palatable, the more famous the creator is.
Trading with NFTs
The other option to make money with Nft is to buy and resell them. The procedure is the same, but the minting phase is replaced by the purchase. Like in the stock market, the trick to trading is choosing the right time to sell.
The most mature market is that of Digital Art, pioneer of the sector. The value of works of art and digital collections is constantly growing, and at the moment it is seen as a fairly safe investment. You go to a marketplace, buy a token, monitor its change in value and resell it when the profit margin is judged satisfactory.
Another rapidly growing sector is that of Nft Games: the concept of playing to earn has revolutionized the way people play. In this case you can choose to play and win objects such as Nft, which can be weapons, land, characters, which can eventually be resold (two examples are Axie Infinity or the virtual world of Decentraland, where you can buy and resell properties). If you don’t want to play, you can make money by buying NFT items and renting them on the various platforms. This is a relatively recent trend, but one that should not be overlooked.
Another investment method is to purchase, at very competitive prices, some tokens in the presale rounds, still under development, betting on the success of the video game. In this case, it may be interesting to resort to the staking mechanism, which consists in binding the tokens for a certain period of time, obtaining in exchange for rewards in cryptocurrency of reference. The advantage for the developers is to protect themselves from any sell-offs, which could jeopardize the project.
Another sector that promises rapid expansion is that of real estate investments. By converting legal documents into NFT, ownership of the asset is ensured by simplifying procedures and reducing the number of intermediaries. For this reason it is seen as a particularly attractive investment, which is for high-level investors it could translate into a big deal, as well as investing directly in Nft marketplaces, the central hub of the ongoing revolution.
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For his part, Montemagno explained to us that he is looking at the NFT revolution trying to go beyond the speculative approach: “What I find interesting is the change taking place, the move towards a decentralized Internet, where there will not only be space for big players, but for many projects, and where ownership returns to users’ hands. Infinite potentials open up: NFTs can become unique digital objects that allow you to access what you want. For example, a Nft ticket for a concert could become the channel through which the singer creates a community with the public, through which he gives access to privileged content and at the same time, that ticket becomes an investment, because it can be resold, both as a collector’s item and for the content it gives access. Staying in the musical field, it could be support an artist buying part of the royalties of the song he is creating, in a sort of evolution of crowdfunding “.
Monty Lab was born with this in mind: 10 thousand Crazy Fury, puppets in the shape of rackets from ping pong, which on the one hand represent an NFT to be collected and on the other become keys to access privileged content, from participation in an annual event reserved for moments of online or face-to-face discussion. “I see it as a way to strengthen my community, it is a project with a long-term vision – concluded Montemagno – On the one hand, the goal is to convert an entire business ecosystem to the paradigms of the blockchain (events, contents, editorial projects); on the other hand, to contribute to spreading crypto tools and culture, currently the prerogative of a niche of experts and enthusiasts “. Also offering an investment opportunity.