NFTs, also known as non-fungible tokens, have now overtaken the world in 2022. As NFTs live on the blockchain and cannot be exchanged 1:1 with one another, they have altered the basis for online transactions, and the authentication and ownership of digital assets altogether. The success of Beeple, along with many others like Grimes, NBA, Kings of Leon, inevitably alludes to the power of NFTs in this future-facing world and web3.0. Today, it is the all-encompassing term for the emerging digital collectible market and is considered an asset class all on its own.
Everyone knows the record-smashing work of Beeple, Everydays: The First 5000 Days, that sold $69 million dollars at a Christie’s auction has been the most talked about. But what was lesser known about the artist was that before October 2020, and before he became a multi-million dollar crypto artist, Beeple used to sell his prints for $100.
How are people making money from NFTs?
Mark Cuban, one of Mintable’s investors, made 5 NFTs for his basketball team, The Dallas Mavericks, featuring a promo video of an upcoming game. At $750 each, the NFTs sold out. Today, Mark Cuban’s Maverick NFTs are being resold and traded as collectibles on secondary markets for more than 5 times their original price. If you’ve read our royalties article, you’ll know that that means Mark Cuban gets paid a percentage of the profit that the secondary sellers are making as well – a good way for establishing passive recurring revenue if you are a creator.
How can I make money off NFTs?
Mintable has helped thousands of NFT creators, artists, brands, athletes, games, and corporations start and grow their businesses with NFTs. NFTs have not only given artists the opportunity to turn their hobbies into careers but have also allowed for traders, collectors, and many others alike an avenue for making money off digital items too.
There are 2 main ways you can make money from NFTs: minting and trading
By minting an NFT, you’re taking a file, be it an image file of the artwork, video, gif, or otherwise, and turning it into an item you can then sell on the blockchain. Minting is something fairly simple and low-cost that you can start with if you’re looking to make some money from NFTs.
- Mintable’s gasless feature helps new creators get started with zero cost at all, meaning more profit when your NFT gets sold!
- There are also several tools you can use to promote your NFTs, and the chances of selling are even higher if you’re a creator with an established following, fanbase, or community.
- As an NFT creator, several platforms including Mintable allow you to attach a royalty fee to your NFT, making secondary sales yet another stream for putting money in your pocket!
Follow our NFT creators 101 guides for tips to start minting!
Trading has become a way for many users to make money very quickly. Buying an NFT and re-selling it for a higher price is called flipping. Flipping can potentially be profitable, however does come with its risks. If you’re not knowledgeable about the digital collectible market, an investment can quickly turn into a loss.
Here are some beginner collector tips for how to determine which NFTs to invest your money in:
- Who is the creator? If the creator has a big following e.g. Mark Cuban and The Dallas Mavericks, the likelihood of hype being generated from the community later is higher.
- Look for when the NFT dropped, new NFTs go for a lower price.
- Scarcity is key and creates demand. The fewer there are on the market, the more likely it will fetch a higher price at a later time.
- Once you have bought your NFT, remember to market it for when you sell it again.
For more collector tips, read our NFT collectors 101 guide!
There is no sure way to make money from NFTs, especially not in the short term. Whether you’re looking to be a creator who mints and sells their art on a marketplace or a trader who is looking to invest to reap profits from resales later, as with any new avenue for profit, there are still many other contingent and unpredictable elements to doubling or tripling your investment. What works for someone else might not work for you. Knowing where you’d like to start out is a good base for entering the market, everything after that is a matter of just trying different things out!
Find it, buy it, flip it at mintable.app