This article comes fromsociobits, original author: Angel Dias

Odaily Translator |

Despite the recent troubles in the cryptocurrency market, NFT is still a hot topic and has successfully bridged the real world and the encrypted world. In addition, we in the bear market can also use NFT to generate income in many ways, let us learn below.

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Minting (mint) NFT yourself and selling it is the most direct way to use NFT to make money. The NFT production process is called "minting". Currently, the cost of minting coins is not high, which means that you can use relatively few cryptocurrencies to generate Hundreds or thousands of NFTs. If you want to sell NFTs, you can choose from dozens of NFT marketplaces. When you put these NFTs on the market, you have to wait for someone to buy them. Note that this market is filled with millions of "similar" NFTs, so the only way to get people to buy NFTs is to create a sensation And make the project more attractive, so try social media marketing. Once the NFT is successfully sold, the buyer's cryptocurrency will be sent to your wallet, and the NFT will be sent to the buyer's wallet.

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Trading NFTs is similar to trading stocks, as a trader, you need to look for an NFT that is as cheap as possible and predict that the item will gain popularity and rise in price in the future. When the value of the NFT increases, it can be resold for a profit. But it should be noted that the vast majority of NFTs have no value at all, and may never even acquire any value. The ability to quickly identify different NFT collections and future potential is a must if you want to be a successful trader.

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Although most NFTs have no practical use, there are still some NFTs that can play a role in games or other professional platforms. In other words, you can rent out NFTs to others to use in games or other professional platforms for a fee. At this stage, there are already some blockchain-based and standardized NFT leasing agreements in the encryption market. When the leasing period ends, the NFT will be automatically returned to you.

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Tip 4: Participate in P2E (Play-to-Earn) NFT games

However, the popularity of P2E games will cool down in 2022, so it may take some time for game NFTs to appreciate. Also note that these NFTs are often game-specific, and if the creator of the game stops supporting the game, or the game itself loses popularity, the NFT you own will be worthless.

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Basically, we can think of NFT as a piece of blockchain-based software, and the NFT smart contract may contain code that rewards the author with some cryptocurrency for each sale. This is often referred to as a royalty, and many NFT marketplaces have a 10% royalty cap. Royalty is especially beneficial for those NFTs that are traded frequently, but will only be paid when the ownership of the NFT changes.

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Some individuals and businesses have started producing NFT replicas of physical collectibles by minting NFTs associated with them to create tradable digital assets similar to physical collectibles. Still, there's nothing stopping someone from producing the same product as an NFT on a separate blockchain or marketplace. In other words, unless you have the marketing ability to convince people that your NFT is the only legitimate NFT for that item, there is no other way to make a high-value NFT the only option for a collectible.

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NFT can be added to the concept of crypto equity, which means that NFT can be staked to get rewards during the stake. However, there are currently very few platforms that support NFT pledges. After all, "staking" is still an emerging concept in the DeFi field. Pledging income is usually provided in the form of platform native tokens, and the value of tokens depends on practicality and popularity. But keep in mind that the actual outcome of NFT staking can vary significantly from DeFi.

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Tip Eight: Invest in NFT-related companies

If you don’t want to directly invest in NFTs on the blockchain, you can invest indirectly by buying stocks of companies whose main business involves NFTs. If the related NFTs become more and more popular, the stocks of the company will also rise. benefit from increased value.

Remember, when you buy shares of NFT-related companies, you not only bet on the future development of NFT, but also bet on the management skills of related companies. Even as the value and popularity of NFTs skyrocket, companies with weak management could be at risk of closure. In this case, even though the NFT market is growing, your investment will lose money.

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