Recently, more and more news from the world of NFT has appeared – paintings, tweets, music, game items and much more are sold in the form of non-replaceable tokens. This topic is of interest not only to private users, but also to corporations, from Samsung to Louis Vuitton. Although NFT is not exactly a new invention (suffice it to recall 2017 and CryptoKitties), in the last three months it has caught a new wave of popularity. This tool brings value to the field of verifying the authenticity of art objects, which has been successfully used by popular artists and artists.
Today the editorial staff of Btcnewsweb.com will talk about how to earn NFT tokens by creating your own assets or buying already created ones. You can store this type of tokens in the Trust Wallet, which supports the ERC-721 and BEP-721 standards.
What are NFT tokens
The term “NFT” means “Non-Fungible Token”.
While fungible objects are identical to each other (for example, a $ 1 bill can be exchanged for another $ 1 bill, which means a dollar is a replaceable asset), a non-fungible object is unique. For example, the painting “La Gioconda” by Leonardo da Vinci was created in a single copy, it is an irreplaceable object. Although there may be millions of copies in the world, they are all worthless compared to the original.
NFT is the same, but in the blockchain world. Like a cryptocurrency, such a token can be sold or otherwise used. Since each of them is released in a single copy, then NFTs can be very rare. Any content is tied to the token, for example, a picture, audio recording, or text. It should be noted that NFT differs from other cryptocurrencies and tokens – each unit is integral, it cannot be divided into parts. You can buy 0.001 BTC, but you cannot buy 0.001 NFT, only the whole object.
How you can make money on NFT tokens
The most common way to make money on NFT is now gamified platforms, where you can create your own virtual items, and then sell them, and the cost of an item directly depends on how rare properties it has.
As an example – the most famous game project with NFT, CryptoKitties. How does he work:
- Each virtual kitten in the game is an indivisible and unique ERC-721 token (NFT).
- Participants buy kittens for further crossbreeding. Kittens can be either the cheapest (not having rare properties) or very expensive (rare).
- Participants crossbreed existing kittens to create new unique pets. There is a chance that they will have rare properties and can be sold at high prices, recouping the initial costs.
This concept was extremely popular with users, and soon after its launch, there was such activity in the project that it affected the fees on the Ethereum network. Many people liked the prospect of creating more valuable assets from cheap assets and making money on this. In 2018, one of the cats was sold for 600 ETH (at that time about $ 600, today it is over 1 million).
Or another example is CryptoPunks. The company has created 10,000 unique collectible tokens. Initially, they were given away for free, but now they are being sold on the secondary market. All “punks” are presented on the official website of the project and differ, among other things, in the background, which indicates their status. Blue background – approved. Red background – for sale by the owner. Purple background – have an active bid.
The Twitter account @cryptopunksbot publishes the largest transactions for the sale of cryptopunks. The average purchase price over the last 12 months is $ 24,000.
In March 2021, crypto enthusiasts “found” another project – CryptoCats, which actually repeats CryptoPunks, but here instead of portraits of people, objects are pixel cats. It turned out that 200 kittens out of the existing 630 remained unsold since 2017. As soon as it became known, most of the cats were sold out in two hours, and the cost reached $ 200 per unit.
Creating your own NFTs
Today everyone can create a non-replaceable token to make money on it. It doesn’t require any deep technical knowledge of programming or blockchain development. The most popular (due to just its simplicity) platform for working with NFT 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 your password.
- Prepare the file. In general, it can be anything – even a photograph 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 required, you can fill it in later.
- Now it’s time to create an object in the new collection. Most of the actions require confirmation in the Metamask pop-up window, but you will not bear any costs at this stage.
- Upload an item (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 you wish, provide additional information: a link to detailed information, description, settings. You can make content “unlockable” so that the item will only open after being purchased.
- Click Create.
Done. You now have your own NFT that can be placed on the open market and sold at a fixed price or through an auction.
How to sell your non-replaceable token
After the token is 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 the expiration date of the trades.
You can group them with your other properties so that they are sold as a group.
After completing the settings, click Post Your Listing.
Keep in mind that to place an object in the directory, you will need to make a transaction from the wallet – the amount is zero, but you need to pay the miners’ commission. This is required to initialize your account.
When your NFT is purchased, the proceeds from the sale will go directly to the wallet minus the OpenSea commission (2.5%).
How to buy someone else’s NFT
In addition to how to earn NFT tokens, you can buy existing ones for further resale. It is convenient to do this on OpenSea or on another marketplace – their number is growing every day. Examples:
For example, on OpenSea you need to go to the Explorer section to see all the available offers. They are grouped into categories for convenience. Filters on the left will help to leave in the issuance only tokens related to a specific project, or sold for a specific cryptocurrency, or only those that are sold through an auction, etc.
By clicking on the desired item, you can get acquainted with the detailed information about it, as well as make a purchase. The money will be debited from the connected ETH wallet, and from that moment on, the token is your personal property. Do not forget about copyright, which is strictly observed here: you can transfer and sell an object as much as you like, but each time a part of the income from its resale will be deducted to the author.
Thus, for content creators, NFT is a lifelong source of passive income.
It is quite possible to make money on the new trend of NFT tokens, and absolutely everyone can do it. Monetizing content, verifying copyright and ownership has never been easier and more affordable. The disadvantages of the process include problems with the scalability of the Ethereum network, which is why the transaction fees are quite high. For this reason, NFT platforms are starting to appear on other blockchains, for example, Binance Smart Chain.