Making money from NFTs is never a guarantee, though there are several ways you can try.
If you’re an artist, photographer, or musician, you can turn your work into NFTs and try to find an audience for them. Minting your work as an NFT can also allow you to earn royalties on secondary sales, which can become a form of passive income.
If you’re an NFT collector, there’s three main methods to try and make money:
- Trading NFTs. Whether as a short-term or long-term investment, NFT trading is a very risky endeavour with no proven science or method. The best advice we can give is to be as active in the NFT industry as possible, garner as much information as you can, and never buy an NFT that you cannot afford.
- Utilise your NFT. If you already own an NFT, you can utilise it to create an income. For example, you can loan a highly-desirable NFT to a third-party (common in blockchain games, such as Axie Infinity), or use it as collateral for loans or other financial instruments.
- Create a fractional NFT. If you own a high-value NFT, you can split it into a high number of tokens – known as fractionalising. This can allow many collectors to own a part of a larger NFT, should the demand be sufficient. The legality of this varies between counties – if you are unsure, always look up the laws in your jurisdiction, and seek independent legal advice.