Making Money with NFTs: Beginner's Guide & Tips
Written by  Daisie Team
Published on 7 min read

Contents

  1. What are NFTs?
  2. How do NFTs work?
  3. How to buy NFTs
  4. How to sell NFTs
  5. How to create NFTs
  6. NFT Marketplaces to Explore
  7. Key tips for making money with NFTs

As the digital world continues to evolve, so too does the opportunity for making money online. One of the newest and most exciting trends making waves is NFTs. If you've ever thought about making money with NFTs, this introductory guide is perfect for you. As we journey through the world of NFTs together, we'll cover everything from what NFTs are, how they work, to buying, selling, and even creating your own. So, let's get started!

What are NFTs?

Let's simplify things first. NFT stands for Non-Fungible Token. In the simplest terms, they are unique digital assets stored on a blockchain. While we're used to thinking of digital files as easy to duplicate, NFTs break that mold. Each one is unique and can't just be swapped for another. Think of it like a autographed baseball card, but in the digital world.

Here are a few things that make NFTs stand out:

  • Uniqueness: Each NFT has distinct information or attributes that set them apart from any other, hence non-fungible. It's like owning a one-of-a-kind piece of art.
  • Ownership: Owning an NFT means you have a blockchain entry proving you're the rightful owner. It's like having a certificate of authenticity.
  • Indestructible: Thanks to blockchain technology, NFTs can't be destroyed, removed, or replicated. Ownership is also securely stored, meaning you can sell and trade NFTs much like you would a physical asset.

Are you starting to picture the potential? Well, buckle up! This is just the beginning. As we delve deeper into making money with NFTs in this introductory guide, you'll find that the possibilities are as limitless as the digital world itself.

How do NFTs work?

Now that we know what NFTs are, let's dive into how they work. The mechanics of NFTs are pretty fascinating, especially when you realize they're part of the same technology family as cryptocurrencies like Bitcoin and Ethereum. But, there's a twist: while cryptocurrencies are fungible (you can trade one Bitcoin for another Bitcoin and there's no difference), NFTs are, as we now know, non-fungible. Each one is special in its own way.

So, how do NFTs work? Let's break it down:

  • Based on Blockchain: NFTs are built on a type of blockchain called Ethereum, which supports the creation of NFTs. The Ethereum blockchain is public, which means anyone can view the details of any NFT transactions.
  • Smart Contracts: These are lines of code that are stored on the blockchain and automatically execute when certain conditions are met. In the world of NFTs, smart contracts allow for things like complex royalty arrangements. For example, artists can receive a percentage every time their art NFT is sold to a new person.
  • Proof of Ownership: The blockchain records every transaction. This means that NFTs have a clear line of ownership. If you buy an NFT, your ownership is recorded and can't be disputed.

So, in the quest of making money with NFTs, understanding how they work lays a strong foundation. Embrace the technology, it's on our side. And remember, we're just getting warmed up. There's still a lot more to uncover in this introductory guide!

How to buy NFTs

Maybe you've seen an NFT that's caught your eye, or you're just eager to dip your toes in the digital asset pool. Either way, you're probably wondering how to buy NFTs. No worries, we've got you covered. Here's a simple step-by-step guide to get you started:

  1. Set Up a Digital Wallet: Just like physical money, digital assets need a place to be stored. Wallets like MetaMask or Trust Wallet can securely hold your cryptocurrencies and NFTs.
  2. Buy Some Ethereum: Most NFTs are bought and sold with Ethereum. You can buy Ethereum through your digital wallet or on a cryptocurrency exchange.
  3. Choose an NFT Marketplace: This is where NFTs are bought and sold. Each marketplace can have different NFTs, and some are more specialized than others. OpenSea, Rarible, and Foundation are popular choices.
  4. Start Shopping: Browse the marketplace, find an NFT you like, and click 'buy'. Just like that, you're an NFT owner!

As simple as it sounds, remember to do your due diligence before making a purchase. Keep this guide handy and make sure you're making informed decisions. After all, the goal here is making money with NFTs, not losing it.

How to sell NFTs

So you've bought an NFT, watched its value go up, and now you're ready to cash in. Excellent! Here's a straightforward guide on how to sell your NFTs:

  1. List Your NFT on a Marketplace: You can sell your NFT on the same marketplace where you bought it, or you can explore others. Remember, different marketplaces attract different kinds of buyers.
  2. Set a Price: This might be the trickiest part. You'll want to set a price that's attractive to buyers but also gives you a good return. A lot of factors can influence an NFT's price, such as the artist, rarity, and current market trends.
  3. Wait for a Buyer: Once you've listed your NFT, it's time to wait. Just like in a physical auction, potential buyers can place bids on your NFT. If you're not in a hurry, you can wait for the highest bid. Otherwise, you can accept a bid that meets your desired price.
  4. Complete the Transaction: Once you and a buyer agree on a price, the marketplace will handle the rest. They will transfer the NFT to the buyer's digital wallet and the agreed Ethereum to yours. It's as simple as that!

Remember, making money with NFTs isn't just about buying low and selling high. It's also about understanding the market, knowing your NFT's worth, and being patient. So, keep learning, keep exploring, and keep having fun with it!

How to Create NFTs

Ever thought about turning your digital art into an NFT? It's not as complicated as you might think. Here's a simple guide to help you navigate the process:

  1. Choose Your Artwork: An NFT can be any digital asset — a photograph, a drawing, a song, a tweet, even a meme. The only requirement is that it must be a file that can be uploaded to the internet.
  2. Choose a Marketplace: The next step is to choose a marketplace to mint your NFT. Some popular choices include OpenSea, Rarible, and Mintable. Look for one that suits your needs in terms of fees, ease of use, and audience.
  3. Mint Your NFT: To create an NFT, you need to "mint" it. This process involves uploading your artwork to the marketplace and creating a new token on the blockchain. There might be a fee involved, but once it's done, your artwork is officially an NFT!
  4. List Your NFT for Sale: Now, it's time to list your NFT for sale. Decide on a price, write a captivating description, and wait for the offers to roll in. Remember: making money with NFTs isn't just about creating them; it's about selling them too!

Creating NFTs can be a fun and rewarding experience, especially if your work ends up selling for a good price. So, why not give it a try? Who knows, you might be the next Beeple!

NFT Marketplaces to Explore

Ready to dive into the world of NFTs? The first thing you'll need is a marketplace. Here's a quick look at some popular NFT platforms you should consider:

  1. OpenSea: OpenSea is one of the largest NFT marketplaces. It's easy to use, supports a wide range of digital assets, and it has a large user base. This is a great place to start your NFT journey.
  2. Rarible: Rarible is another popular marketplace. It's user-friendly and it allows you to not only buy and sell NFTs, but also to create them. Rarible also has a unique feature that lets you earn a native cryptocurrency for buying and selling on the platform.
  3. Mintable: If you're looking to create your own NFTs, Mintable is a great choice. It's easy to mint your own NFTs, and they even offer gas-less minting which can save you money.
  4. Foundation: Foundation is a platform that focuses on digital art. It's a curated platform, meaning each artist needs to be invited by another artist on the platform. This can be a great place to find high-quality NFT art.

Each of these platforms has its own unique features, so consider your specific needs before making a choice. Remember, the key to making money with NFTs is understanding the market, so don't be afraid to explore different platforms and see which one works best for you.

Key tips for making money with NFTs

Now that you're a bit more familiar with NFTs and some of the top marketplaces, let's talk about some key tips and strategies for making money with NFTs. But remember, this is just an introductory guide to making money with NFTs. It's a complex world and there's always more to learn.

  1. Do your research: Just like any other investment, it's important to do your research before spending any money. Look at what types of NFTs are popular, which artists are in demand, and what's selling on different platforms. The more you know, the better decisions you can make.
  2. Buy what you love: This might sound like strange advice for making money, but hear me out. The NFT market can be volatile and unpredictable, so it's always a good idea to invest in art or assets that you genuinely appreciate. That way, even if the market dips, you still own something you love.
  3. Consider the fees: Most NFT marketplaces charge fees for buying, selling, and sometimes even browsing. Make sure you understand what these fees are before you make a purchase or list an NFT for sale.
  4. Think long-term: It's easy to get caught up in the hype and excitement of the NFT world, but making money with NFTs isn't always about quick flips. Think about the long-term potential of the NFTs you're buying. Some NFTs might increase in value over time, so patience can be key.

Remember, the world of NFTs can be exciting and rewarding, but it's not without risks. Always do your homework, stay informed, and make decisions that align with your personal goals and risk tolerance.

If you're ready to dive into the world of NFTs and start making money with your digital art, don't miss the workshop 'Intro to NFTs' by Andrea Orejarena. This workshop will give you a comprehensive understanding of NFTs, how they work, and how you can use them to monetize your creative work. Don't miss this opportunity to stay ahead of the curve and learn the ins and outs of the NFT market.