Many people aspire to become millionaires in their lifetime. But, every living person must understand that the only way to become rich is to become wiser financially.
In the times when digital currencies are being developed, and cryptocurrencies are being exchanged, one must learn how these things work. A sound trader does not have huge investments but knows places that utilize their money most profoundly.
Today, the most interesting avenue for making investments and earning a passive income is the NFT. NFTs are digitally created works linked to a blockchain network that can be sold for cryptocurrency.
NFTs are visually appealing pieces of artwork, music, copyrights, metaverse projects, PFPs, and anything that can be made digitally available for purchase. NFTs are non-fungible, meaning they cannot be exchanged for another NFT.
Each NFT is unique and rare in its way. Acquiring a good NFT requires an organized, strategic, and perceptive approach.
Every expert was once a beginner. This article will act as a guide for beginners who want to make a profit in NFTs. Following are six ways through which beginners can start their journey to becoming pros in NFT trading:
- Minting one’s own NFT: The most effortless way for beginners to understand how to earn from NFT is to create one. Many platforms provide pocket-friendly NFT creation along with minting and trading facilities. Platforms like Solana, Polygon, and OpenSea are some examples.
Minting is the process of creating digital work on a blockchain platform and trading the work on that blockchain for its native currency or token. People who want to showcase their artistic and visual talents can create and sell their NFTs to earn a passive income.
- Invest in developing projects: Beginners who have basic knowledge of NFT and blockchain technology must look out for developing projects. As many crypto, NFT, and blockchain projects provide access to pre-sales to first movers, it becomes an advantage.
When new rare collections are launched, always look out for their initial price as they will have cheaper costs then. Once it becomes clear that the collection is gaining popularity, slowly start selling your purchased collection for higher prices, making a profit.
- Generating income from royalties: Creators who want to earn through selling their own NFTs should embed a creator’s fee in their collection. This creator’s fee is called royalty. Royalties are a great source of generating passive income, as whenever a person sells an NFT in the secondary market, a part of the income goes to the creator.
Moreover, platforms like OpenSea encourage charging royalty as this will motivate creators to produce good quality work.
- Earning from play-to-earn games: Another interesting method to earn money in NFT is to play play-to-earn games. These games allow users to acquire in-game NFTs, which can be bought and sold in the game and secondary markets.
Play-to-earn games are intuitive platforms that enable gamers to put their money into the game, which will give them rare NFT collectibles. Games like AxisInfinity, Star Atlas, Splinterlands, and Gods Unchained are some examples that provide monetary incentives in their NFT-build ecosystems.
- Flipping the NFTs: Flipping the NFTs means that the curator should buy the NFT collection at low prices and should wait for the prices to increase. It is the easiest way to generate profit. But reality can be harsh sometimes as many NFT collections don’t gain popularity and price momentum over time. That’s the thing beginners should look out for before putting all of their money into a single collection. A detailed study should be carried out before flipping NFTs.
- Staking NFT: Staking means locking up your digital assets on a blockchain platform and earning incentives in return. This way, the network encourages investors who support them in their development.
Through staking, beginners can understand deeply how NFTs and blockchain support each other and how an inclusive ecosystem is built. This way, beginners can immerse themselves in the blockchain network and become part of larger-than-life projects, communities, and global advancements.
Final Thoughts
These are some methods through which a beginner can learn about NFT and begin their trading journey. NFTs are revolutionizing the modern world, and making smart moves in this sphere will surely benefit your pockets in the coming years.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/06/12/build-your-riches-through-nfts-in-6-ways-a-beginners-guide/