You have probably heard about NFTs and how some people have profited from them.
NFTs are the most recent cryptocurrency craze to hit the mainstream. If you are an entrepreneur
or a small firm that develops digital content, it makes sense to learn how to make money using NFTs.
You have probably heard of the 12 year old artist who made over $400,000 selling her art as NFTs
or Robowski selling NFTs of his best super bowl moments with this news spreading on social media.
It is no surprise that NFT surge to prominence rapidly with more people jumping on the bandwagon,
understanding NFTs is the first step toward making money with them. And in, if you truly
want to understand what NFTs are and how to make money from them, watch this video till the end.
Disclaimer, I'm not a financial advisor. The video is for informational and educational
purposes only. Hey everyone, welcome to crypto trends in today's video,
we'll talk about NFTs and how you can make my any from them. So make sure to subscribe to
the channels so you don't miss out on any of our videos. So without further ado, let's get into it.
What are NFTs NFTs basically stands for non fungible tokens. They are cryptographic token
that are stored on a blockchain. In a nutshell, an NFT is a record of a transaction on a blockchain.
What's the use of storing data on a blockchain. If it's not necessary taking a step back,
let's describe a blockchain without going into the complexities of mathematics. Let's use a
bank. As an example, you can erase certain transactions and write new ones on a single
piece of paper that a bank uses to record all of its transactions. For example, with a pencil,
if someone gets hold of that notebook, they can do the same thing.
Of course, it's not done with a pencil, but it serves as an explanation. So what exactly is a
blockchain rather than a single person, having a notebook and a piece paper with a pencil,
everyone has a notebook and the identical transactions written down.
So if you want to hack someone steal or change information, you have to wipe everyone's notebook,
which is physically impossible. That is why blockchain is so crucial. Let's get back to
the NFTs part. NFTs are actually utilized in a capacity for real world commodities,
such as artwork, music, art, and even real estate NFTs. Unlike cryptocurrencies cannot be traded or
swapped because they're not similar. Consider a baseball card collection or a rare coin collection
NFTs established scarcity among otherwise infinitely available assets.
They are commonly used to purchase and sell digital commodities, such as tweets, artwork,
game skins and virtual real estate. NFT sales reached 2.5 billion in the first half of 2021
marking a year of growth for the industry. The total NFT market is currently worth more than
23 billion as of 28th, January and is likely to 10 X this year. What gives an NFT value?
Consumer interest drives the value of an NFT in the same way that it drives the value of
items in our hypothetical art collection, similar to trading cards, the rarity and
number of prospective buyers affect their value. While an image can be transformed into an NFT,
the image can still be freely shared. It does however unambiguously demonstrate who
owns the asset through the blockchain types of NFTs. If you have been wondering what the most
well known source of NFTs are, you'll be relieved to know that there are plenty.
Here are four of the most well known types of NFTs. Number one, digital artworks individual NFT
artworks are among the most profitable and popular non fungible tokens created to date on March 11th,
2021, an auction house, old artwork, every days, the first 5,000 days for an astounding 69 million
forever changing the history of blockchain and art. This was the auction house's first time
auctioning a completely digital piece of art NFTs provide the artist, the right of ownership so that
when you develop a digital asset, you can demonst proof of authenticity and earn from your work.
If you are the inventor of a meme, you will benefit when it spreads from that vantage point.
NFTs are a game changing technology for artists. Number two, fashion NFTs, NFTs like artwork,
address, authenticity issues, and eliminate the potential of counterfeits clothing and
fashion manufacturers are increasingly reaping the benefits of the NFT trend by creating a digital
limited edition of their clothing, featuring a collection of classic celebrity items or design
signatures, furthermore clothing and fashion manufacturers can benefit from NFT development
by creating an NFT marketplace for their and accessories. This enables them to produce an
endless amount of revenue from NFTs in a secure and robust environment. Number three, licensed
collectibles tokenizing valuables is one of the most effective specialized applications of NFTs.
And it appears to be the most apparent solution to deal with people who work in the physical
collectibles industry, such as trinkets, mementos, trading cards and other goods.
Now simply have to sell the same as digital assets because of NFTs capacity to verify rarity.
The value of collectibles can be substantially higher than their physical counterparts.
Sports cards have proven to be the most popular or collectibles thus far
the sports card initiative initially only allowed the exchange of licensed footballer cards.
The national basketball association or NBA has now released its own set of NFT cards. Other sports
are likely to follow suit and collections will have a greater range of sport NFTs to choose from
this isn't to say that other types of collectibles aren't doing well as previously indicated tangible
items can be converted into tokenized assets and purchased, exchanged, or sold as such while
physical trading and handling can degrade the quality of collectibles NFTs never lose
their value because they only exist in digital form and are safely recorded on the blockchain.
Number four video games NFTs for video games are also taking shape. As blockchain allows you to
switch from paying to win, to playing to NFT game creation. The way to go. If you want to engage
larger audiences and improve income prospects with high demand prizes, the games include features
that allow you to buy, sell, trade, or exchange your treasures. Although there haven't been
many games that have gained broad popularity. The potential is huge with games being well known for
being major spenders on virtual products, video games with NFTs sellable in game items have a good
chance of being a great hit. Notably NFT video game. Producers are also ambitious NFT designers,
which may propel NFT technology ahead in game NFTs are the most advanced when compared to other NFTs,
just artwork, fashion, and trade cards. This is due to the fact that they are complicated,
completely interactive and constantly changing with time by having to be upgraded or leveled
in accordance with changes in a player's character, how to make money with NFTs.
There are several ways to make money using NFTs. And the following four are most widely used
way. Number one, sell NFTs when it comes to making money with NFTs,
the most basic method is to create and sell NFTs. But how do you sell NFTs?
NFTs are typically sold in marketplaces with different processes, depending on the platform
simply said, you will post your stuff to the marketplace, convert it to NFT, and then wait
for it to sell. It's a lot like Amazon or Etsy. If you already have a digital content portfolio
that you hold, the rights to here is what you should do next. Step one, choose your marketplace,
mint, the NFT and connect your wallet. You have a plethora of marketplaces to pick from
open ay marketplace wearable, super rare, and minable are a few examples. Take a brief,
look over these marketplaces and choose the one that best fits your content.
The following step is to mint the NFT to put it simply minting. An NFT is the
process of converting a digital file into a crypto collectible or a asset on the Ethereum blockchain
though, this may appear to be complicated most, if not all, marketplaces will provide a step by
step guide on minting your NFT directly on their platform. After you've decided on a marketplace,
you'll need to connect your funded cryptocurrency wallet, then upload your digital file and proceed
with the process on your chosen marketplace. Each platform will have its own set of procedures,
and you'll be able to either sell the item as a one time, buy or receive royalties. Step two, list
NFT for sale. Once you've completed the process and your file has been uploaded and demented,
it's time to put it up for sale. After you put it for sale, the marketplace will calculate gas fees.
This is a cost charged by the Ethereum blockchain network to record transactions. This cost varies
according to how busy the network is, depending on the marketplace, the best strategy lower this
price is to list your product during non peak hours way. Number two, staking NFTs.
Staking is basically locking or depositing your NFTs in order to earn passive revenue.
The yield generated by staking is well recognized to be dispersed in the form of tokens.
Some defi platforms require users to buy NFTs for staking and award rewards in the form of
governance tokens that grant voting rights way. Number three, royalties from NFTs NFTs are one of
the most fundamental cornerstones of the creator led economy. That web 3.0 is aiming towards one
example is that NFT creators can earn royalties long after their art has been sold. Royalty fees
created passive income. Anytime the creator's NFT is exchanged in the secondary market.
These royalties are determined by the NFT inventor. What's the best part. The entire
process of receiving passive revenue from NFTs is automated. Since blockchain transactions
are governed smart contracts that have pre-filled royalty data from NFT developers,
way number four, renting out NFTs, several game PFI platforms enable NFT owners to earn passive
money by renting out their digital assets to NFT gamers in the ecosystem, smart contracts
manage these rental agreements. While NFT owners have the ability to select the loan rate and
length. Many platforms have a maximum for both. As you can see, this is a growing concept with
a lot of future possibilities. Future of NFT market. The NFT market is more efficient and
liquid than the traditional market. It is based on digital art and Ft marketplaces, and its fees
are significantly lower than the 5% or even 10% fees charged by traditional art brokers.
Tens of thousands of unique NFT wallet. Connections are counted each week by experts
like wearable and aggregators like open sea during the last five years of tremendous growth in the
market, the first cryptocurrency holders became millionaires and even billionaires.
This crypto rich generation is primarily made up of risk, taking young individuals who enjoy
experimenting and can afford to do so. Despite high price volatility research has indicated that
the general public is becoming more committed to the mainstream use of cryptocurrencies.
Their willingness to take risks expands the possibilities of crypto economics
while there are numerous incredibly promising technology applications in the luxury and gaming
industries that will gradually grow over the next three year. Some think that the NFT craze
will be shortlived particularly in the arts sector. The audience there is unmistakably
distinct from that of traditional markets. However, the NFT mania may be shortlived,
but it has the potential to make a significant shift in the direction of the digital economy.
What are your thoughts about NFTs will NFTs be as big as cryptocurrencies in the future,
or would the idea behind NFTs fail? Let us know your thoughts in the comment section down below.