Cryptocurrency investing is coming of age, and several trends are rising and showing signs of being the next big thing in the crypto world. In the ever-evolving blockchain world, the technology behind cryptocurrency Non-Fungible Tokens (NFTs) is quickly taking shape as a passive investment method. NFTs have become so popular that respected corporations, celebrities, and investors are launching or talking about launching their NFTs.
A look at recent statistics reveals just how fast NFT popularity is rising. In 2021, the total NFT sales value was $250 million, while the first quarter of 2021 has a total sales value of $2 billion.
However, not all NFTs are equal; some are worth a fortune while others, well, nothing. Before getting into the most profitable ways you can make money with NFTs, here is what NFT means.
What is a Non-Fungible Token
The simple non-fungible definition is goods or assets that aren’t interchangeable. It’s creating or having something that you can’t replace with something else. Fungibles are those that you can interchange, one for another. Therefore non-fungible tokens are units of data stored on a blockchain and certifies a digital asset as unique and, accordingly, un-interchangeable. You can look at them as a digital equivalent of private collectibles where each piece has a different value.
How to create an NFT
Surprisingly, creating an NFT isn’t complicated, and there are platforms where you can get guidance on the entire process. NFTs are built and supported by a particular blockchain, with Ethereum NFT being the most popular. Apart from Ethereum, Flow and Binance are also commonly used for its development. You need a crypto wallet and cryptocurrency, mainly Ethereum, to transact. You can sell NFTs for cryptocurrency or fiat money through smart contracts, and the transfer is recorded on a blockchain.
Four Top Ways To Make Money With NFTs
If you have been wondering how people make money with NFTs, you’ll be glad to know there are several ways to do that. Look at these four ways that have had some tangible results.
Digital Works of Art
Individual NFT artworks are among the most popular and valuable non-fungible tokens created so far in terms of profitability. The history of blockchain and art changed dramatically on March 11, 2021, when an auction house sold artwork for a staggering $69 million. This was the auction house’s first time auctioning a fully digital artwork.
NFTs, give the right of ownership to the artist such that when you create a digital asset, you’re able to show proof of authenticity and profit from your work. If you happen to be a meme creator, you get to benefit when it circulates. Looking at it from that perspective, NFTs are a revolutionary technology for art creators.
In a similar way as with artwork, NFTs address authenticity issues and eliminate the possibility of counterfeits. Clothing and fashion brands are increasingly benefiting from the NFT trend by releasing a digitized limited edition of their outfits with a collection of iconic celebrity pieces or design signatures. In addition, the clothing and fashion brands can benefit from NFT development by building an NFT marketplace for their clothes and accessories. This allows them to generate unlimited revenue from the NFTs in a secure and robust environment.
Tokenizing collectibles is among the best niche application of NFTs and feels like it’s the most obvious way to deal with collectibles. People already in the sector dealing with physical collectibles such as trinkets, memorabilia, trading cards, and other items now only have to sell the same as digital assets. With NFT’s capability to prove uncommonness, the value of the collectibles can be significantly higher than their physical counterparts.
The most popular collectibles so far are sports cards. Initially, the sports card project only allowed the trading of licensed footballer cards. Now, the National Basketball Association(NBA) has also launched its collection of NFT cards. There’s a high likelihood that other sports will follow suit, and collections will have a wider variety of sport NFTs to buy.
This is not to say that other collectibles aren’t doing well. As stated earlier, physical collectibles can be turned into tokenized assets and bought, traded, or sold as such. While physical trading and handling can damage the collectibles, NFTs never lose their quality as they only exist in digital form and are securely stored on the blockchain.
Video game NFTs are also taking shape as blockchain allows you to turn the games from paying to win to playing to earn. For the games to engage larger audiences and increase revenue opportunities with high-demand rewards, NFT game development is the way to go. The games have functions that allow buying, selling, trading, or exchange of your collectibles. Although so far there aren’t any games that have gained high popularity, the potential is enormous.
With games being well-known huge spenders on virtual items, video games with NFTs sellable in-game items have a likelihood of becoming a big winner. Notably, NFT video game developers are also ambitious creators of NFTs, which might thrust the NFT technology further forward.
Compared with other NFTs such as artwork, fashion, and trading cards, in-game NFTs are the most advanced of all. This is because there are complex, fully interactive yet keep changing with time by having to be upgraded or to be leveled with the changes in a player’s character.
Final Thoughts: The Non-Fungible Future
Non-fungible Tokens don’t seem to be a blockchain and crypto trend that’s just passing. With its numerous and unique applications, it looks like only the tip of this technology has been explored. The fact that only simple images are popular right now shows that nobody can estimate the full potential of the technology. As the popularity of NFTs continues to rise, it might give rise to more complex tokens allowing for the NFT market explosion. In addition, NFT developers are also increasingly coming up with innovations for other sectors. So far, different industries like the real estate, media, and entertainment industries can also benefit from NFTs.
SOURCE Vestigo Finance