Stories from artists and personalities who have made millions of dollars from NFTs have been a regular feature of the cryptosphere throughout the past year. They contributed to the explosion of a market which today represents more than 40 billion dollars. As a result, many retail investors are desperate to profit from NFTs without really knowing how to do it. We present to you in this article the two options available to you to earn money from NFTs.
Create your own NFT and sell it
NFTs are generally sold on marketplaces with different processes depending on the platform. For this purpose, there are dozens of sales platforms, including OpenSea, Axie Marketplace, Rarible, SuperRare or Mintable. Once you have selected a marketplace, you will need to link it to your cryptocurrency wallet. It will then be necessary download the digital file you want to convert to NFT and follow the conversion process indicated on the marketplace you have chosen.
Each platform will have different processes and will allow you either sell your NFT in a single transaction or earn royalties on subsequent sales. Once you’ve filled in the information and your file is uploaded and converted, you can now sell it. At this stage, the marketplace will naturally charge you gas fees which are related to the execution and recording of transactions on Ethereum. These fees vary depending on network activity.
Use the trading NFTs
Some entrepreneurs and investors use NFTs like stocks and make a profit by buying and selling them. If you have already purchased a collection of NFTs and no longer need them, you can easily sell them the same way as if you had created them yourself. The right time to sell an NFT depends on its nature, why you bought it and the interest it arouses. A quick internet and market research can help you determine this.
In addition, you will need to calculate the potential profit and loss including some additional costs. These include transaction fees, marketplace listing fees, and royalties paid to the original owner. These fees will ultimately reduce the final amount of your winnings. For more complex NFT transactions that require in-depth knowledge of the cryptocurrency industry, you may want to consider consulting a professional.
It is important to remember that while the process of selling NFTs is straightforward, it is not as easy as it sounds. There will be costs associated with converting your digital content to NFT and selling it, which can be significantly high depending on when you list it for sale. the trading NFTs can be associated with uncertainties, given the volatility of this young market.
Source: Small Business Trends
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