7 Best Ways to Make Money on NFT Tokens in 2022

The concept of NFT is becoming increasingly firmly established in the cryptocurrency industry since use cases for non-fungible tokens are constantly expanding. And of course, currently, there are many different opportunities for making money on NFT assets.

Today, we will consider key ways to make money on NFT tokens. Many of these earning methods can be called passive, and they also differ in the degree of risk. Let’s get started!

What Is NFT?

From a technological point of view, NFTs are cryptographic tokens, which, unlike ordinary ones, are unique: each token differs from the other and cannot be replaced by it. Accordingly, the cost of each token is determined individually, based on what it represents, who the author is, etc.

Objects that can be represented in the NFT format:

  • Digital paintings and animations;
  • Video and audio;
  • In-game items for blockchain games (weapons, skins, etc.);
  • Land plots in metaverses.

In addition, any real objects of the physical world can be tokenized, and then an NFT buyer gets the right to own a real object.

An important advantage of NFT is that users’ rights are fixed on the blockchain. Thus, the one who holds a token in a blockchain wallet is the sole owner of the linked object. At the same time, other people can freely copy and save pictures, but it will be the same as making reproductions of paintings by artists. The original copy is still considered to belong solely to an NFT owner.

7 Ways to Make Money on NFTs to Know

Let’s consider the main ways of making money on NFTs. Their list has been constantly updated in the last couple of years.

#1 Creation and Trading on NFT Marketplaces

NFT Creation on OpenSea

The first thing that usually comes to mind is to create your own NFT token and put it up for sale. It’s easy as A, B, C! True, there is no guarantee that the token will enjoy popularity.

Read next: Top 10 Best NFT Platforms to Buy, Sell and Create NFT Tokens

How to set a price for your first NFT? Actually, there is no specific formula or plan to solve this issue. Still, experts give two main tips:

  • Start with low prices, but carefully monitor the market situation and do not be afraid to increase the price if you are sure that the product you offer will be relevant in the near future.
  • Play around with price bonuses. You can attract customers in many ways, for example, by offering discount codes for future purchases or adding nice bonuses. It is possible to make tokens unlockable, that is, a user will be able to view part of the content only after its purchase.

If you are interested in a detailed guide on how to create your first NFT, make sure to check our blog article relating to this topic.

It is also common practice to resell other people’s NFTs, as they can increase in price over time. But still, there are no guarantees of this growth. However, many celebrities invest millions of dollars into digital art.

#2 Royalty

NFT Royalty Scheme

When creating an NFT, an author can set the conditions under which they receive royalties whenever their creation changes hands. This is a permanent passive income if the arts are in demand.

The duration of a royalty program is unlimited. If a deduction of 10% is set during creation, then an author always receives this 10%, no matter how many times the token is resold. The process is fully automated and is carried out using smart contracts. Original creators don’t need to track payouts manually or confirm them every time.

#3 Blockchain Games

Axie Infinity NFT Game

Most modern blockchain games with the Play-to-Earn concept allow you to make money on NFTs.

Read next: Top 15 Best NFT Games You Need to Know & Play in 2022

Non-fungible tokens feature pets, weapons, equipment, land plots, skins, and more. Users can sell these items on the built-in marketplace by obtaining them during the game. Also, some projects provide the opportunity to create your own in-game items using an integrated constructor and then sell the items on the marketplace (The Sandbox).

Examples of blockchain games with NFTs:

#4 Renting Land Plots or In-Game Items

The Sandbox Land Plots

Another interesting way to generate passive income is to rent out your NFTs. For example, in some blockchain collectible card games, you can rent out or rent some rare cards that will help increase your chances of winning.

Renting out digital land plots is also a common practice. This way, a renter can use land plots at their own discretion: place advertising structures or other commercial facilities.

Read next: How to Buy Land in the Metaverse: Best Digital Land Plots to Know 2022

#5 Liquidity Provision

Uniswap v3 Liquidity Provision

In September 2021, decentralized exchange Uniswap v3 came with some massive changes, including a new powerful tool for liquidity providers in the NFT format (ERC-721).

Thus, based on the pool and the parameters selected in the liquidity interface, a unique NFT is minted, representing a position in that particular pool. The NFT owner, in turn, can change or buy out the position or sell it on any marketplace on the Ethereum blockchain, for example, OpenSea.

#6 Staking

Splinterlands Staking

NFT staking allows users to earn in a relatively new way, made possible by the close connection between fiat tokens and the Decentralized Finance industry. Staking involves depositing or freezing digital assets in a DeFi protocol smart contract to generate passive income.

Examples of platforms that support this functionality:

The assets in which the rewards are paid may differ — for example, Ether or the platform’s own governance tokens. In addition, there is often an opportunity to reinvest coins earned from NFTs in different Yield Farming protocols.

#7 Investing in NFT Startups

Binance Launchpad

This method can be rather called an indirect way of making money on NFTs. Now new projects are regularly launched that use the concept of non-fungible tokens. These are apps of the most different industries, from games to data storage. Investments in the most promising projects can pay off many times over in the future.

Platforms such as Binance Launchpad or Bybit Launchpad will help you choose up-and-coming startups. Token sales on these platforms take place in a subscription format, ensuring a simple and fair allocation between users. In addition, exchanges conduct a thorough analysis of each startup, as they value their reputation. Still, make sure to do your own research to invest wisely.

Conclusion

NFT is much more than just another trend in the blockchain industry. New users and organizations are constantly joining the field. At the same time, the process of making money on NFTs is not as simple as it seems at first glance. Minting and selling entail network fees. And the volatility of the young market carries risks for investors. If you have free money, then you can buy a token that you think will be in growing demand in the future, but no one can guarantee this.

What is the best way to make money on NFTs? Feel free to share your thoughts in the comments below!

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