Have you ever wondered how people earn a living with NFTs? Early last year, NFTs shot above the $12billion mark right from $162.4million. Presently, both individuals and companies are venturing into the NFT space to join the new trend.
Now, let’s take a look at the various ways which have proven effective and through which people make money with NFTs.
Renting out your NFTs
One of the various ways people generate passive income is by renting out their NFTs and this approach is particularly used for common and popular NFTs.
A lot of people rent out their NFTs via a platform known as reNFT. This platform allows for people to lend and rent NFTs and also enables the lenders to establish borrowing duration limits. reNFT also allows lenders to have daily rates of wrapped Ethereum (WETH) which averagely range from 0.002 to 2.
After an NFT has been developed, the developer can make extra income through royalty costs. That is, earning a percentage of the sales price every time your NFT creation is sold in the marketplace. This entire process is automatic, so the developers do not have to request payments or keep track of payments as they get rewarded automatically.
Flipping of NFTs
This is another way people generate income in the NFT market space. More so, it is one of the most beneficial ways to earn even though it comes with its risks. To flip an NFT simply means to buy an NFT at a lower price and resell it at a more inflated price within the same market space.
To do this, you must carry out your research to be able to find trending NFT projects from the various NFT platforms while also discovering your niche. Generally, there are two popularly known platforms where NFTs are created and launched, and these include the SuperRare and NFTically.
Staking your NFTs
This simply means to lock up your NFTs in a platform to earn the staking compensations of the nonfungible token. That is, you retain ownership of the token yet, you earn passively from it. One thing to note is that there are some NFTs that cannot be staked, therefore you can not earn on them via staking. Examples of platforms that enable users to stake their NFTs are, NFYX, Only1, Kira Network.
Play to Earn NFT Games is another means to generate income. It is also a well-known means, especially in low-income countries. There are several games such as Axie infinity, Sorare, Evolution land, etc. Here, the player plays and is compensated with tokens, and sometimes NFTs drop.
Tokens are earned regularly in the course of the game. The more you play, the more you earn. You cash out by selling to other users who rate NFTs or cryptocurrencies in the market space. However, some factors determine how a player earns, these are the gaming technique and the demand of the market. A player can also lose money while playing NFT games and might lose their NFT if not cautious.