What is NFT?
How to Make Money From it.
A handful of people missed the trend of DeFi in 2020 then into 2021. The trend of NFT is here, and instead of ignoring the trend, the best we can do is figure out how to make money from the trend.
It is essential that you understand a trend before you jump into it, else you will jump into a bandwagon, and your story will be like, “crypto is not for everyone; I wouldn’t advise you to participate in it.” Meanwhile, you could have done better.
But I assume that you have not sinned and stained your white on the street of FOMO (Fear of Missing Out) into trends before reading this, even if you have……..….. well, I forgive you, but there will be no next time.
What Does NFT Mean?
NFT is an acronym for Non-Fungible Token. Just as the name implies Non-Fungible, it is one of its kind.
Imagine I give you an NFT; if you lose or sell it, you will never get that kind of NFT anywhere, else you buy back from the person you sold it to. If I give you Cryptopunk #6545 you will never see any NFT that is exactly Cryptopunk #6545 — Cryptopunk is a kind of NFT.
Unlike Ethereum, It is fungible. If I give you one Ethereum and you sell it, you can buy the exact type of Ethereum from an exchange, and both will be the same.
History of NFT.
The first NFT on the Ethereum blockchain was Terra Nullius, launched in August 2015. Like every new thing, it is either too early, or there are several shortcomings that users have to ignore using it.
It wasn’t until Cryptopunk was introduced in 2017 by Matt Hall and John Watkinson that similar NFTs like Cryptokitties, Art Blocks, Bored Apes Yacht Club, etc., started springing up. Cryptopunk introduced a different kind of NFT that projects started imitating and adding to their invention.
Many people argue that Cryptopunk was the first NFT on the Ethereum blockchain because it represents NFT. There are various concepts and meanings attached to NFTs.
Cryptopunk started as an experiment by Matt Hall and John Watkinson in 2017 in their mobile-focused company, Larvalabs. When John Watkinson was a teenager, he collected a lot of Hockey cards and magic cards, but creating the digital equivalent without it being copied was a challenge he didn’t know how to solve.
It wasn’t until early 2017 when John and Matt came across Blockchain and uniquely generated 8-bit collectible simple pixel-like characters on the Ethereum blockchain. Each Cryptopunk was unique and could not be copied.
They created 10,000 unique Cryptopunks and gave them out FREE to their community to claim. You just had to have an Ethereum address and about $0.11 to cover transaction fees.
Some individuals claimed more than 1 Cryptopunks. Larvalabs kept 1,000 Cryptopunks to themselves, just in case it becomes valuable in the future.
The cheapest Cryptopunk was 66 Ethereum ($171,652.80) when I was writing this.
Types of NFTs?
Collectibles: The likes of Cryptopunk and Bored Apes Yacht Club are collectibles. They are currently traded in Opensea(NFT Marketplace). People trade them or buy and keep them to sell later when the price appreciates or keeps them because of their uniqueness.
Artwork: In the traditional system, artists draw and sell their artworks in auction houses, market them themselves, or put them in museums. In Blockchain, you need creativity and programmable skill to create an artwork.
Many artists are exploring this opportunity to sell their artworks online. Those with no programmable skills partner with programmers. Artworks created on the Blockchain are unique and cannot be duplicated. This type of NFT is the most popular.
Event tickets: Musicians, Artists, and Entertainers now use NFTs as the ticket to their events, thereby removing the middlemen and maximizing their profits. NFT tickets allow artists to connect directly with their customers as each purchase is documented on the Blockchain and the recipient and creator are clear.
Gaming — Some gaming projects require users to use NFTs to access their games. To play Axie Infinity games, you need to have an Axie Infinity token. If you enjoy playing games and have the time, you can monetize your skills and earn free money. Maybe you don’t have money; YGG (Yield Games Guild) will teach you how to access these platforms and play-to-earn for free.
Virtual items: This may sound ridiculous, but people spend a lot of money on virtual items they won’t be able to wear in real life. Remember, someone bought a Doge Meme for $4 million. Why can’t people buy virtual items?
Virtual items like shoes, houses, necklaces, wristwatches, glasses, cigarettes, clothes, etc., are sold on the NFT market. Some people buy them to dress online avatars.
It sounds crazy, right?
Music: Recently, Musicians and DJs started selling their music as NFT instead of allowing record labels to sell them for them. Due to streaming platforms and record label cutbacks, musicians only receive a small portion of the revenue generated by their work. NFTs allow musicians to keep about 100% of their earnings, which is why so many musicians are gravitating to this model.
Memes: Then we have the memes. Someone can create a digital copy of themselves and sell them as NFTs. Some popular memes like Nyan Cat, Disaster Girl, and others are racking in between $30,000 and $770,000. Memes are usually used to send resistant messages or pass a message you don’t want to say yourself; they are sold and bought for fun.
Domain names: The spread of the NFT craze isn’t limited to domain names. You may register a domain name and then sell it on the NFT marketplace, which has its own set of advantages. The majority of the time, you’ll have to pay a third-party business to handle your domain name. If you buy one on the NFT marketplace, you will be able to claim exclusive ownership of the name, cutting out the middleman.
Real Estate: Fraud happens in the real estate industry as often as you can imagine. People sell fake properties, fake transfer of ownership, issue fake certificates and contracts. Maybe, if real estate events were as traceable as they would on the Blockchain, the 2008 market crash wouldn’t have happened.
These certificates, contracts, and properties will be created as NFTs on the Blockchain. This will enable quick verification, impossible to alter and permanently store information. Before you buy a property, you can check if it has been sold or not.
Properties created on the Blockchain allow users to see real-time prices and valuation of a property before buying or selling them off. Just like the stock market, you can buy and sell stocks in real-time.
How You Can Make Money With Them
The crypto space is filled with opportunities; it is left for you to figure out one and milk it as long as the chance remains. Many people have made a lot of money in the NFT space, and if you position yourself well, you can make money too.
1. You can trade NFTs in NFT marketplaces like OpenSea, Axie Marketplace, Rarible, SuperRare, and Mintable.
2. Rent NFTs. YGG enables users to rent out their Axie Infinity to them. You can buy and rent out your NFT instead of keeping it in your wallet without earning.
3. NFT Royalties. If you are an artist, you can sell your artworks as NFT and earn royalty each time your NFT is sold to another buyer.
If you don’t know how to create an NFT on Ethereum blockchain or any blockchain, you can pay or partner with blockchain developers to create and list it on any NFT marketplaces.
4. Stake Your NFT. DeFi (Decentralized Finance) protocols now offer users the options to stake their NFTs. You can stake your NFTs and earn passive income. You can stake your NFT in any of these platforms, Splinterlands, Kira Network, etc.
5. Research like your next meal depends on it. Research helps you build your guts. Information from your research results will help you make a sound investment decision.
Now you may have a few people you rely on for information, and they’ve been delivering. What happens if they are no longer there and you’ve spent 2–3 years following them?
You will probably look for another person or begin to do the research yourself.
6. Provide NFT Liquidity to platforms. You can use your NFT to provide liquidity on DeFi protocols.
7. Never take any project for granted. No matter how humble the beginning of a project is, grab it if they give free NFTs. What do you lose after all?
8. Discord Whitelist: You can engage in Whitelisting your Discord account for NFT projects then sell the spot to clients who need the whitelisted account.
This is how it works.
Projects give out a limited spot of their project to their members who are whitelisted. Imagine a project that wants to conduct a token sale, and it is only whitelisted members will be eligible to participate. Some clients do not have time to do those tasks, so they would require someone to do them, get whitelisted, and get paid for them.
This is where you come in.
This is what the job description looks like.
Join this project using the link below, get verified, and ask about how their discord whitelisting works in the general chat. They will be more than willing to help you.
9. Patience is truly a virtue. The crypto space needs a lot of patience for projects to mature. Two things are involved; either they make you rich or scam exit. Aside from these, what is the worse that would happen?
If you are starting with no money, maybe you are risking your feeding money, rent, school fees, etc., to try your luck; I wouldn’t suggest that. I would recommend you join any gaming guild. YGG gives its users free access to play-to-earn games.
I wrote an article on making money in crypto without investing your money, and if you have money and feel overwhelmed with the opportunities the crypto space is offering, pick a niche here and go all in.
If you think you are late for the party, you are not. You should be more worried about positioning yourself to take advantage of the enormous money coming into NFTs, which I have mentioned above.
We are still on the surface level of NFTs. Companies like;
Coinbase is developing an NFT marketplace.
Nike is engaged in NFT shoe verification.
Facebook is investing in the creation of a metaverse.
Warner Bros. has already released Space Jam NFTs and wants to release music NFTs.
Twitter is integrating NFTs. You can currently use NFT as your profile picture on Twitter, and more advancement is yet to come.
These are opportunities.