The NFT market has experienced exponential growth in the last year and has offered investors several ways for them to make money. It’s an open secret that digital assets are an exciting and compelling means to diversify your investment portfolio. This trend is expected to continue and become even more popular in the coming years. This article highlights several ways to make money through NFTs from your home, even as a college student.
- NFT HODLing
This is one of the best strategies that you can use to make money with digital assets such as NFTs. HODL means “Hold On for Dear Life” and describes a situation in which investors simply don’t sell their assets irrespective of what happens.
Cryptocurrency investors can testify that this strategy has its pros and cons, but if you use it wisely, it’s an excellent way to make money with NFTs. For instance, in crypto trading, if an investor chooses not to sell when the price dips massively, they may end up reaping the gain years later when the price skyrockets.
It’s worth noting that this approach may not always work for NFTs because some NFT collections don’t experience the uptake needed to generate such price momentum. However, social media can give the necessary momentum to some projects on the NFT calendar, which may represent an investment opportunity for investors.
2. Flipping NFTs
Flipping is an effective means of making money with NFTs. It refers to buying an asset for a low price and selling at a high price to give a profitable return. The difference between this strategy and others is that it’s a short-term strategy that gives quick cash, unlike HODLing.
However, the challenge lies in finding the best NFT to flip for profit because of market competition. Similarly, it may be challenging for students to find the best writing essay service to provide essay help for them. However, it’s not impossible to consider some of the necessary factors.
For instance, the utility of the tokens is an important factor to consider since this is a factor that investors consider before purchasing it. You should also consider community backing alongside the team’s development team. Lastly, consider the NFT’s visual appeal since most investors would love to display this digital art on social media or in a digital art gallery.
3. Minting your own NFTs
This is another approach to making money with NFTs. Minting has to do with taking digital assets (such as music or digital art) and putting them on the blockchain. Once you’ve minted the asset to the blockchain, you’re able to trade them on the NFT marketplace and make money from it.
Minting NFTs is relatively straightforward, with top marketplaces such as NFT LaunchPad helping beginners with this process. Due to the rapid growth of the NFT market, there’s intense competition among creators, and new collections are coming up daily. Thus, if this is an approach you’re considering, you must ensure that you create something that stands out from the crowd.
Once you create your NFT and mint it to the blockchain, you have to wait and see if someone decides to buy it. Hence, marketing has an important role because, without proper promotion, most collections will be invisible to potential investors. Once you’re able to sell the NFT, you’ll get the proceeds from the sales (after the marketplace fee has been deducted) that you can withdraw to your wallet.
4. NFT Trading
NFT trading is similar to flipping and HODLing NFTs. It’s a process geared towards making more capital gains in the long term instead of getting in the market and out of it as soon as possible. If you’re interested in NFT trading, you’ll be buying and selling NFTs regularly for small profits, and you’ll do this continuously.
Ultimately to be successful with this process, you need more patience and broad knowledge of marketing than HODLing requires. This process relies on purchasing undervalued NFTs, which you sell when the time is right. However, this may also result in exponential profits in the longer term, which makes this approach popular among experienced NFT investors.
5. Staking NFTs
People who love crypto staking will be happy that the process is also applicable to NFTs. There are various forms of NFT staking, even though the primary mechanism used is to ‘lock up’ the digital asset on a Defi platform and get rewarded in return. This is quite common in Proof-of-Stake (PoS) blockchains, and the owner is rewarded in the native token of the network.
Ultimately, you can validate the transactions completed on the network with this process, similar to when crypto investors stake their tokens. However, it’s worth noting that this is still new to the market, so it’s still in its infancy, and there are very few platforms offering NFT staking, mainly within the P2E gaming sector. Some examples of these platforms are Zookeeper and MOBOX.
This process is one of the most effective ways to make money with NFTs passively. So it may be optimal for you as a student. APYs may vary across platforms and depending on the NFT you’re staking. However, as more NFT projects are starting to flourish in this market area, it’s expected that the process will become more popular going into the future.
There are several ways to make money with NFTs, even as a college student. This article discusses five ways that you can find straightforward.
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