Non-Fungible Tokens (NFTs) have exploded in popularity over the last 24 months. Much like the early days of the internet, overall adoption continues to rapidly increase each year. In fact, according to BlueWeave Consulting, the NFT market size is estimated to reach 19.57 Billion (USD) by the end of 2028.
You may have read stories about how NFT creators and savvy investors earn huge sums of money through launching, buying and selling these digital assets. In this guide, we’ll break down the 10 best ways to make money with NFTs. Many of these are beginner-friendly strategies that can be used instantly. Whereas others are more complex and take more time to master.
- Free NFT Mints
- Trade NFTs
- Spot Future Blue Chip NFTs Early
- Flip NFTs
- Use NFTs As Collateral
- NFT Yield Farming
- Mint Your Own NFT Collection
- NFT Gaming
- Network With Other NFT Hodlers
- Participate in NFT Bounties and Airdrops
What Does It Mean To “Mint” An NFT?
Simply put – minting is the process of creating an NFT. The metadata from the digital file gets added to the blockchain. Unlike ERC-20 tokens, which are fungible, NFTs follow the ERC-721 standard which means that they are unique digital assets. While projects will often provide a front-end option such as a website to mint from, you’re still interacting with the underlying smart contract to mint your unique NFT.
1. Free NFT Mints
Did you know that some of the most successful and popular NFTs to date were released for free? That’s right! Free mints have become a legitimate tactic used by projects to instantly build hype and develop a strong community. One of the most famous free mint examples is goblintown.wtf. 10,000 NFTs were released for free in May 2022 and at one point, increased all the way in value to 7.6 ETH (approximately $15,200 at the time). The key here is to spot these free mints early and then sell as FOMO increases and the floor price rises.
A variety of free and paid tools exist to help users monitor for new collections that drop. Nansen for example provides an NFT Paradise section where you can specifically keep an eye out for new mints (Mint Master shown below). You only need to find one free mint such as goblintown.wtf for this strategy to become extremely lucrative.
2. Trade NFTs
Many people choose to accumulate NFTs with the sole intention of later selling for a profit. However, when taking this approach there are many important factors to consider. For example, how much liquidity is there currently in a collection? In other words, are people actually buying the collection and at what rate? Just because the floor price is a certain price, it doesn’t necessarily mean that’s what your NFT is currently worth. You have to consider the top bid, or what people are actually willing to pay at that moment in time. It is a common mistake for beginners to see a high floor price for a collection and then get stuck with an NFT that no one else wants to buy. There’s nothing worse than needing to sell an NFT urgently but there being little buying interest to do so.
Another factor to consider when trading NFTs is deciding what collection to buy. Blue-chip NFTs will likely serve you well over time but naturally, they are priced to reflect this premium in quality. If you can identify trends that are happening in the market, you can get ahead of others by buying early and then “selling the news” later. Trading NFTs can be an extremely profitable way to make money but in general, requires an edge and knowledge of the market for this to be effective.
3. Spot Future ‘Blue Chip’ NFTs Early
One way to potentially make money with NFTs is to identify and invest in NFTs that have the potential to become valuable in the future. These NFTs are often referred to as “blue chip” NFTs, as they have the potential to be stable and long-term investments. To spot these potential NFTs early, you can keep an eye on emerging artists and projects, as well as trends in the NFT market. It can also be helpful to do research on the artist or project behind the NFT, as well as the technology being used to create and sell the NFT.
By investing in NFTs that have a strong foundation and potential for growth, you may be able to sell them for a profit in the future. Keep in mind, however, that investing in NFTs carries some level of risk, and it is important to do your due diligence before making any investment decisions.
4. Flip NFTs
Flipping NFTs involves buying NFTs at a lower price and then selling them for a higher price, similar to the way that real estate or stock investors flip properties or stocks. To be successful at flipping NFTs, you will need to have a good understanding of the NFT market and be able to identify NFTs that have the potential to increase in value. It can also be helpful to have access to resources that can help you stay up-to-date on market trends and new NFT releases.
One way to find NFTs to flip is to keep an eye on free NFT mints, as well as NFTs that are being sold at a discounted price. You can then resell these NFTs for a profit once the demand for them increases. However, it is important to keep in mind that flipping NFTs carries some level of risk, as the value of NFTs can fluctuate rapidly and there is no guarantee that you will be able to sell them for a profit. It is also important to be aware of any fees or commissions that may be associated with buying and selling NFTs.
5. Use NFTs As Collateral
Some NFTs can be used as collateral to secure loans or other financial products. This can be an effective way to make money with NFTs if you have valuable NFTs that you are willing to use as collateral. To use NFTs as collateral, you will need to find a lender or financial institution that is willing to accept NFTs as collateral. It is important to carefully consider the terms of any loan or financial product that you take out using NFTs as collateral, as you may be at risk of losing your NFTs if you are unable to repay the loan.
6. NFT Yield Farming
NFT yield farming involves using NFTs to earn passive income through staking or holding them. Some NFT projects offer rewards to users who hold or stake their NFTs for a certain period of time. These rewards can be in the form of additional NFTs, cryptocurrency, or other types of assets. To participate in NFT yield farming, you will need to find NFT projects that offer rewards for staking or holding NFTs, and then acquire and hold the NFTs for the required period of time to earn the rewards.
7. Mint Your Own NFT Collection
If you have artistic talent or unique ideas, creating your own NFT collection can be a lucrative way to make money with NFTs. This strategy requires more effort and time upfront, as you will need to come up with an idea for an NFT collection, create the artwork or digital assets, and then market and sell them. It can also be helpful to familiarize yourself with the technology and platforms used to create and sell NFTs, such as Ethereum and OpenSea. To make the most out of this strategy, it is important to create high-quality NFTs that people will want to buy and collect. This can involve finding a unique niche or theme, as well as incorporating elements that make your NFTs stand out from others on the market. Additionally, it can be helpful to build a following and establish yourself as an artist or creator before launching your NFT collection, as this can help increase interest and demand for your work.
8. NFT Gaming
NFTs are being used in a variety of gaming applications, such as in-game items, collectibles, and even entire virtual worlds. If you are interested in gaming and have an understanding of the NFT market, you may be able to make money by buying and selling NFTs related to gaming. This can involve buying NFTs that are being sold at a discounted price and reselling them for a profit once the demand for them increases. It can also be helpful to keep an eye on new NFT releases in the gaming industry and identify potential opportunities to buy and sell NFTs.
9. Network With Other NFT Hodlers
Networking with other NFT holders and industry professionals can be a useful way to stay informed about new NFT projects and trends in the market. By building relationships with other NFT enthusiasts, you may be able to learn about new opportunities to buy and sell NFTs, as well as get insights and advice from others who have experience in the NFT market. To network with other NFT holders, you can join online communities and forums, attend NFT-related events, or join social media groups related to NFTs.
10. Participate in NFT Airdrops and Bounties
Some NFT projects offer airdrops or bounties to users who help promote or contribute to the project. An airdrop is when a project gives away free NFTs to a group of users, often as a way to build awareness and community around the project. A bounty is a reward offered to users who complete certain tasks or contribute to a project in some way. Participating in NFT airdrops and bounties can be a way to acquire free NFTs that have the potential to increase in value over time. To find NFT airdrops and bounties, you can keep an eye on social media and online communities related to NFTs, or check the websites of NFT projects for information about any current airdrops or bounties being offered.