In 2022, even those who do not like going to museums and confuse Monet with Manet became interested in art. It seems that something strange is really happening to the art market: either Banksy’s work will be burned, or a tweet will be put up for sale. Every day there is someone who is willing to shell out hundreds of thousands of dollars for a short video. It has something to do with NFTs, blockchain and cryptocurrency. It's actually not that complicated.
Is it possible to make money on NFT tokens and how?
Any digital art that is sold for NFT tokens. It is also often called crypto art. Everything is clear with art. As a rule, this is video, music or digital painting.
Let's move on to the second part of the definition. A token is one entry in the blockchain chain. But recently, a special type of token – NFT – has been used for transactions in the art industry. NFT stands for non fungible token, that is, “non-fungible token.” The fact is that by default, all tokens in the chain are fungible. One ruble can be replaced without loss by another - the same principle applies in the blockchain. This is not suitable for proving ownership, because in this case, what you bought can be easily replaced, and no one will notice the difference.
NFT technology has fundamentally changed the situation: each such token is unique. It cannot be secretly changed to another. This allows you to reliably protect the rights to anything - from a GIF to a house.
This is how it works in the art market. The artist or seller uploads the work to a special resource and splits it into one or more NFT tokens. By purchasing such a token, the buyer becomes the owner of the rights to the object (or part of it, if there are several tokens).
What are metaverses on the blockchain
The concept is a kind of hybrid that combines the virtual world, augmented reality, blockchain, and media components. The main goal is to organize the “life” of users in the digital space so that they can play and stay in touch with friends or colleagues through events ranging from talks and seminars to travel through digital worlds.
In addition, metaverses have an important component: the opportunity to generate income within the virtual world. NFTs greatly simplify the process of purchasing goods and services, helping to expand economic opportunity. More importantly, with NFTs, the user can not be limited to one world, but can move their items and other data between different metaverses.
Now let's look at the main ways to make money in this sector.
Scheme for making money on NFT tokens - how to promote and withdraw NFTs
Why is everyone talking about NFTs now? They represent the future of digital content. These are programmable, freely traded on-chain digital media Lego bricks. It’s one thing to have a long debate about how they will change the way content is distributed and consumed, but participating in this bubbling cauldron by adding NFTs to your portfolio is quite another. Where to even start?
How to take a winning position in the emerging and promising NFT market?
In this article, we'll look at how to build your own NFT portfolio in several ways, including buying NFTs directly, buying NFT platform tokens, or buying NFT indexes.
How to approach NFTs
There are several options for participating in this market and only you can decide which one is best for you and whether it is suitable at all.
The easiest way is to buy NFTs in a price range that suits you from creators you trust. They can be stored in the same way as ERC-20 tokens, on a cold wallet or MetaMask.
But there are other ways.
Buy individual NFTs
There are several NFT aggregator platforms on Ethereum, such as OpenSea and Rarible, which collect NFTs from across the ecosystem. Through their simple interface, you can purchase all kinds of NFTs.
There are also more specialized sites, such as SuperRare and Nifty Gateway, focused on digital art.
All transactions with digital items are carried out using ETH. Make sure you have Ether before you go shopping. ETH is money.
OpenSea allows you to buy and sell NFTs with different tokens, but the default currency is ETH.
Having crypto money in your wallet, you can start shopping. Determine the budget that you are willing to allocate for the purchase of NFTs. Don't worry if you can't afford something really cool. In this market, everyone can find items from their own price category.
There is no one right way to collect NFTs. Just keep in mind that NFTs are illiquid and there is no guarantee that you will get back the ETH you spend. The value of each item here is very subjective.
This market is inefficient and contains many arbitrage opportunities.
Therefore, the best strategy would be to buy something that you personally like and that you would not mind owning for many years. In the future, someone else may find your item valuable and make a lucrative offer to purchase it.
I advise you to use analytical resources, for example, NonFungible to analyze the situation and prices on the NFT market
ERC-20 tokens of NFT platforms
Using the ERC-20 standard, anything can be tokenized, so it is not surprising that such tokens are also used in the NFT ecosystem.
There are, for example, RARI management tokens from the Rarible platform or AXS from the Axie Infinity game. These projects are built around NFTs, so it is logical to assume that the NFT boom will have a positive impact on their prices.
These tokens allow the community to control and share ownership of a project, which is unusual in the corporate world.
Buying these tokens in anticipation of the platform's growing popularity is a good way to benefit from the development of the NFT industry if you do not want to collect.
In addition, there are productive tokens, such as MEME from the protocol of the same name and SAND from the Sandbox gaming platform. Owning them opens up new service opportunities for users that are not available to those who do not have these tokens.
The Meme Protocol is an NFT farming project, and you need to stake the MEME token to unlock limited-edition artwork or trading cards. Whereas SAND is used as an in-game currency in the Sandbox universe.
The final category of ERC-20 tokens with an NFT focus are tokens that represent partial ownership rights. For example, NIFTEX's sharded NFTs or Metapurse's B20 token.
NIFTEX allows users to break their NFTs into smaller pieces denominated in more liquid ERC-20 tokens. It turns out that many people can own a share of one NFT at the same time.
Metapurse B20 token works on a similar principle, only they will divide the ownership rights to the works from the The Beeple 20 Collection bundle.
If you think those available on these sites will rise in price, fractional ownership can help even collectors with little capital make money.
Lend money to NFT collectors
There are many collectors interested in borrowing money against their NFTs. This can be done on a platform for issuing loans secured by NFTs.
If the borrower for some reason cannot repay the debt, then his NFTs go to you.
What should you not do?
1. Give your money to scammers. In the crypt, scammers will be waiting for you at every corner. They fake groups/channels/sites, accounts of channel and group admins, and then write on their behalf.
Remember the most important rules.
- Always check the information (whether it is from the official website/channel and whether it has been hacked at the moment).
- Admins never write first. If someone writes to you on behalf of the admin, immediately send him to a ban.
- Never click on links or open files that someone sends you.
- Never send mnemonic phrases from wallets to anyone and do not enter them ANYWHERE. Otherwise you will be left without a wallet.
- Before exchanging one crypto for another on DEX platforms, double check the contract address (take it from an official source). Otherwise, you can buy candy wrappers.
In order to be less likely to try to deceive you, disable the ability to invite you to groups in the cart + disable private messages in discord. Otherwise, offers and deceptive news will constantly pour in that you allegedly won a couple of million bitcoins on the whitelist.
2. Trade futures. Under no circumstances should you be tempted to trade with leverage on any exchange. Yes, it is exciting and gambling, but in 99.8% of cases it leads to the loss of all your money. The casino always wins . Tested by millions of hamsters shaved in futures dumps.
3. Buy paid signals/use free ones. Those who sell signals make money only from gullible hamsters. Using other people's signals over a long distance, at best you will stagnate in one place, at worst you will lose your deposit. Moreover, you will be dependent on others, “look into their mouths” and will not develop as an independent, thinking organism.
3. Use bots for trading. This is approximately the same as paid signals. You are not developing, you are dependent on the bot/developer. Bots often drain deposits. Therefore, you need to constantly monitor them, worry and be nervous.
4. Buy courses/join crypto academies. You will only waste time and money paying for courses. All information is available for free - take it and do it. And information businessmen will shit in your ears and pump you up with information that will lead you in a direction that is beneficial only to them (not to you).
5. Listen to everyone. There is a lot of garbage in the information space. Especially on YouTube. I recommend not subscribing to anyone there at all. Especially for those who darn several videos a day with the words “good luck to everyone, guys.” Most YouTubers make money not from crypto, but from viewers. They advertise projects that they were paid for or to make money from the referral system.
To move in crypto, YouTube is not at all necessary. Look for something there only when you want to understand something (project, technology, algorithm). Don't watch every video in a row looking for something new - it will end badly.
6. Get involved in one project for the whole cutlet. No matter how promising the project may seem to you, and no matter what guarantees loom there, you can lose everything you invested in it. Most often, newcomers choose one of the brightest and loudest projects, which ultimately turns out to be a scam. To avoid being left broke, take part in dozens of different projects for a small amount.
7. Buy on high. Beginners' hands are burning and money is pressing on their pockets. Therefore, they come to the crypt and immediately buy those coins that everyone is talking about now. What is heard now is most often already overheated.
I would not recommend buying coins from the market at all, but if you consider some projects to be promising, then buy only at large price drawdowns. In crypto, price drops of 40-60-80% are very common. Wait for them and buy what you need. But, of course, it is safer to buy crypto at original prices (at token sales).
Here are examples of my purchases from the market:
I think you wouldn't want to find yourself in the same situation?
8. Participate in pyramids and scams. Don't trust anyone! They will try to deceive you everywhere. Never send funds to anyone, never reply to private messages, or click on links/open files that strangers send you. Always double check everything so as not to screw up. If you doubt an idea/project, it’s better to ask us in the chat - listen to people’s opinions, and then make a decision. I repeat myself again and write this because it is important and many have already been scammed.
9. Give in to panic and/or euphoria. Be patient, moderate your greed and don’t build castles in the air in your head. This is the only way to maintain your deposit and psychological balance. Those who succeed in crypto are those who know how to wait and methodically act according to their own strategy (more on this later).
Miracles often happen here when millions appear out of nothing. As a rule, such stories roam the Internet only in order to plant hamsters in some overheated asset, or in an asset that is compared to an overheated one.
The standard scheme for taking money is to tell a beautiful story and hint that everyone can repeat it. Therefore, in addition to miracles, there are many more stories here when people lose their money, but these stories are not so bright and popular...
Create your own NFTs
Today anyone can create a non-fungible token in order to make money on it. It does not require any deep technical knowledge in programming or blockchain development. The most popular (due to its simplicity) platform for working with NFTs is called OpenSea. Here's how you can use it to create your own unique blockchain asset:
- Install the Metamask extension for the Chome browser, create your own ETH wallet.
- Go to the OpenSea website. Click on the Create -> Submit NFTs button in the upper right corner and connect using the Metamask wallet by entering the password.
- Prepare the file. Basically, it can be anything - even a photo of your dog. Click Create a new collection.
- To create a collection, you need to specify its name and upload a logo; a description is not necessary; it can be filled in later.
- Now it's time to create an object in the new collection. Most actions require confirmation in the Metamask pop-up window, but you will not incur any costs at this stage.
- Upload an object (for example, a photo). Supported formats: JPG, WEBM, OGG, GLB, PNG, MP3, WAV, GIF, MP4, SVG, GLTF. The maximum size is 100 MB.
- Enter the name of the object.
- If desired, provide additional information: a link to detailed information, description, settings. You can make content “unlockable” so that the item can only be opened after it is purchased.
- Click Create.
Ready. You now have your own NFT that can be listed on the open market and sold for a fixed price or through an auction.
Once a token has been created on OpenSea, you can immediately click the Sell button to sell it. There are two options for setting the price:
- Fixed. You simply place a fixed price in DAI, ETH or USDC.
- Auction. You specify the minimum price and trading expiration date.
You can group them with your other items so that they are sold as a group.
Once you've completed your settings, click Post Your Listing.
The future of NFTs
NFTs promise to change the structure and nature of ownership of contemporary art or any other token, as well as the way it is bought and sold. Following this, the income of those who benefit from trade will change.
With the help of NFTs, any asset can become “tokenized.” This is an ideal copyright protection system. This means it cannot be copied or reproduced for free. The chain of ownership of an object has always existed, but never before could it be traced with such precision.
And in the future, this could mean that power over art will be taken out of the hands of intermediaries (banks, record labels, platforms) and transferred to creators (game developers, artists). Imagine a world where all songs are tagged so that every artist gets paid for every use of their song, without the need for Spotify. Imagine a world in which physical assets - real estate, luxury goods - are also registered in the blockchain.
Results
The benefits of gaming using blockchain technology can hardly be overestimated. Today it is a huge market with a capitalization of over 200 billion dollars and the number of players over 3 billion people. Such popularity leads to the promotion of various blockchain technologies and attracts interest in them. Practice shows that NFT games are not just entertainment, but a way to study all the advantages of blockchain and earn money. Each participant in such projects makes a serious contribution to the development of the game and the world of cryptocurrency itself.
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