According to Statista, the total NFT sales value in the art segment worldwide has reached 162 million US dollars as of November 2021. Though the total value of sales has fluctuated in 2021, it has increased significantly from April 2021, where the total NFT sales value was just 64 million US dollars. It is essential to know how to be a part of this fast-paced digital world to generate passive income with digital assets.
How to Make Money With NFT
As the latest cryptocurrency and blockchain space trend, NFTs are all over the internet these days. They are continuing to be a part of the news headlines in different parts of the world because of the unbelievable prices at which some NFTs are sold. Want to take advantage of this trend? Keep reading and find out how to make money with NFT.
What Is an NFT?
NFT stands for a non-fungible token which means unique and non-interchangeable. An NFT cannot be replaced with another. For instance, you can substitute 1 US dollar with 100 cents or one Bitcoin with another, but you can never replace one NFT with another NFT.
The NFTs have come a long way from colored coins, crypto punks, crypto kitties, to present digital works of art. Any real or intangible item can be represented virtually and turned into an NFT. Artworks, music files, virtual lands, video clips, digital trading cards, GIFs, virtual items in video games like weapons, avatars, virtual currency, and tokenized real-world assets can be minted as NFTs on distributed ledger technology.
The digital artwork by famous American artist Mike Winkelmann, known as Beeple, is the most expensive NFT to date. Named “Everydays: The First 5000 days”, it was sold for 69 million dollars on Christie’s auction house.
Any digital thing can be turned into an NFT like famous tweets, Facebook posts, Instagram pictures. Similar to cryptocurrencies, you can buy, sell and store NFTs in digital wallets. The only difference is, NFTs are irreplaceable.
How to Make and Sell an NFT?
You do not need to be an expert like Gary Vaynerchuck or a founder like Jack Dorsey to create and sell an NFT. The process of making money with NFTs is quite simple. The step-by-step guide below will teach you how to make an NFT and sell it on any marketplace.
Step 1: Set Up a Digital Wallet
The first step in your NFT journey is to create a digital wallet. This will help you to buy, sell, and create NFTs. You can store your cryptocurrency securely in a digital wallet, and it also allows you to create accounts on NFT marketplaces.
MetaMask is one of the best software wallets for both NFT creators and NFT collectors. Ethereum blockchain and ERC 20 tokens are widely used to create NFTs and make any NFT-related transactions, respectively. MetaMask supports Ethereum, which helps you to make NFT transactions. It simplifies purchasing crypto and connects easily with other crypto platforms and NFT marketplaces.
Step 2: Purchase Ethereum and Store It in the Digital Wallet
As a part of the next step, you need to purchase a small amount of Ether and store it in your digital wallet. On most digital art marketplaces, you would have to pay fees in the form of Ether to turn your digital content into an NFT.
You can purchase Ether (ETH) on almost any platform and transfer it to your wallet. You can use our comparison tool to find the best crypto exchange to buy the ETH.
Step 3: Connect Your Wallet to an NFT Marketplace
Once you have set up a digital wallet and purchased ETH, it is time to choose an NFT marketplace that helps you create an NFT and list your work. Some of the best NFT marketplaces are OpenSea, Mintable, Rarible, SuperRare, Nifty Gateway, etc. One of the largest crypto exchanges in the world, Binance, also allows users to sell NFTs on the platform. Crypto.com is another exchange where you can trade NFTs.
After creating the digital wallet, adding funds to it, and selecting a marketplace, the next step is to connect your digital wallet to the marketplace. Linking the wallet to the marketplace makes it easier to pay fees for converting your work into an NFT. It also helps you to collect payments from selling NFT.
Step 4: Create and Sell NFT on the Marketplace
Make Digital Art File
As we have mentioned before, any digital thing can become an NFT. However, digital art, either moving or static, is gaining more popularity these days as NFT.
There is no one particular way for creating a piece of art to turn it into an NFT. If the format of the file you have created is supported by the marketplace you’ve chosen, it will work as an NFT. This opens up a completely new world of possibilities for the content that you can monetize. Any image, txt, jpeg, mp3, mp4, png, or gif can be an NFT.
Price Your Art and List It on the Marketplace
After creating your digital art, you need to upload it on the marketplace. On most of the marketplaces, you will find two options to turn your work into an NFT: one-of-a-kind piece or as a collection of multiple items.
After uploading the digital art file, you need to give it a name, description, and other details about the art, along with the price. You can give it an instant sale price or sell it at the auction.
While converting your digital art file into an NFT, you have to pay the fees in the form of Ether from your digital wallet.
Once that is done, you are ready to sell your first NFT!
Promote Your NFTs and Wait for Bids
Promoting your NFT collection is essential so that the audience knows that your NFTs exist. Social media marketing is the best way to promote your NFTs. Twitter, Instagram, Discord, and Medium are popular platforms to showcase your artwork.
As we discussed, you can give a certain price to your NFTs or sell them at the auction. If you’ve selected to sell them at the auction, you need to wait for the bids. Sometimes, you would have to go back to the platform and check for bids because you may not get notifications all the time when someone placed a bid. You can finally sell your NFTs for a preferred price and make money.
NFT is one of the ground-breaking ideas after creating cryptocurrencies and blockchain technology. Though skeptics do not find them interesting, NFTs are here to stay. Creating and selling NFTs is one of the best and easiest ways to make a lot of money. You can start making money with NFTs by following this guide.