We Explain How You Make Money From Owning NFTs
What Are The Different Ways To Earn Money From Owning NFTs?
Yes, you can own fun digital art that actually pays you money to diamond hand (HODL) it.
Currently, There Are Nine Popular Methods To Earn Money From Your NFT
1. Staking NFTs For Passive Income
This is probably the simplest method to create NFT passive income.
There are many NFT projects with passive income.
The first NFT collection that offered its owners a reward for owning one of their NFTs was CyberKongz.
Once you have staked your NFT, you will receive an income, usually in the project native token.
Why Do NFT Projects Offer Staking?
The NFT project is literally rewarding you with their native token in return for you not listing or selling your NFT while it is staked.
This helps maintain a healthy, strong NFT floor price, as-well as continued demand (sales royalties) because – when you are rewarded (by staking your NFT), you are less likely to sell your income asset.
A small warning
Some NFT native tokens can become valuable (APE coin), but far more become worthless!
You should be selective when looking at an NFT project with a token attached. Look at the liquidity, which exchanges you can sell it on, and what utilities there are.
When staking an NFT for the passive income you are usually looking at the project long-term. Look at the NFT roadmap, including the tokenomics.
Fast forward to the end of 2022. Now hundreds of NFT projects pay you a daily, weekly, or monthly income from simply staking your NFT on their platform.
As an NFT investor, you must find the best NFT for passive income. It is a new development in the crypto world, so expect NFT staking to evolve as this market matures.
We have created a list of passive income NFTs in our NFT resource directory. We hope this helps you find the perfect NFT.
2. NFT Profit Sharing
Profit-sharing NFTs are an exciting new development. We believe we shall see this trend increase over time.
Some NFT holders have full/partial intellectual property (IP) rights over their NFT.
NFT projects often make partnerships deals and collaborations with major retail, gaming, and merchandising businesses. These deals can be very lucrative. In the past, 100% of the revenue from these deals was kept by the NFT creators.
We are seeing a new trend of rewarding holders with a profit share from all business activities.
Gambling NFT projects are on the rise, and for good reason. Some gambling platforms now profit share up to 70% of the profits with their NFT holders.
We are entering an era that will see NFTs used as legal deeds to businesses in the real world.
One NFT project is working on using NFTs as a means of fundraising to purchase ice cream stores. These stores will compete with Ben and Jerry’s, and all NFT holders will receive a profit share of the business!
3. NFT Income Funds
DAO income sharing was an early development in NFT investing. You purchase an NFT, and as an owner, you share in a small percentage of the fund’s profits.
NFT projects receive large amounts of money from the royalty fees of each NFT sale and resale. They took this money and reinvested it often in other projects. When the fund sells an NFT they bought using the DAOs money, they share this profit amongst its holders.
If you would like an effortless way to profit from an NFT investment fund, we have created an NFT fund resource directory where you can look through our listings to find the right income fund for you. Happy hunting!
We have also created a crypto investment fund resource directory where you can invest with professional investment businesses. Rather than have to find and store different cryptocurrencies, these funds invest for you and you receive an income/return.
4. Royalties NFT
This is for NFT creators and digital artists.
What are NFT royalties?
When an investor sells an NFT to another investor, they will often pay a royalty fee to the artist that created the NFT. This helps the digital artist to use the royalty income to create more artwork and cover production costs.
NFT royalties percentage
You can create an NFT and sell it on an NFT marketplace. As a creator you set the royalty rate.
NFT royalty fees can range from zero to over ten percent. Every time one of your NFTs sells, you automatically receive a percentage of the sale. The best part, one NFT may sell many times over the years, and each time you receive your cut!
5. NFT Loans
You can earn money by using your NFT as collateral for a loan and reinvesting the loan money. Some platforms allow you to lend money to an NFT owner that needs a short-term loan. You receive part of the lending fee.
Sometimes you may want to use your NFT as collateral to raise some short-term funds. Investors then use this money to buy more NFT to flip for a profit.
We advise caution as you could lose your NFT if you make a mistake and can’t repay the loan.
If you are interested in learning more about NFT loans, look at our NFT loans resource directory page.
6. NFT Renting
Renting NFTs is rather a clever idea.
There are many metaverses and play-to-earn (P2E) games that you need an NFT in order to access the platform and play.
Axie Infinity – a popular metaverse platform where NFT holders can enter and play the game. Players can earn rewards in the form of crypto. If you do not have enough money to buy one of their NFTs, you can rent an NFT for a few hours to play and make money. The owner of the NFT gets paid when someone rents their NFT.
It may sound strange to non-crypto people reading this, but at their peak, there were over 1 million players on Axie, and thousands of players lived full-time off their gaming income!
The famous Bored Ape Yacht Club (BAYC) NFT creators allow you to rent the image (pfp) out. Advertising companies, DJs, and Brands can use your ape’s artwork and you decide how much to charge them. There are even TV shows and famous entertainers using their BAYC pictures to create animated videos and live gigs.
We have created a rent your NFT resource directory to help you find an NFT you can rent or rent out.
7. Metaverse And P2E NFTs
There is a reason Facebook was renamed Meta. The metaverse and play-to-earn gaming are set to become a trillion-dollar industry.
Take a look at the Country of Dubai metaverse economy document if you want to see how big this will become.
Fortunes have, and will continue to be made in Metaverse and play to earn NFTs.
How to make money owning P2E NFTs
You can rent your NFT to players (for a price) or use your NFT to play the game and receive rewards.
How to make money with a metaverse NFT
In the metaverse, there will be literally endless methods to make money. Think of the metaverse as a virtual world economy mirroring the real-world economy. A carbon copy of an existing business world can be downloaded and used online.
As a player in the metaverse, you can work in a virtual store, for example, and get paid in real life. You can play games, visit the metaverse casino, race cars, and get paid if you work in one of the businesses or win one of the games.
Now, imagine you own an NFT that represents one of the virtual businesses.
Metaverse NFT owners can rent out their virtual real estate, sell products and services, and more. There are even billboards with advertising revenue placed in metaverses. Owners of these NFT billboards receive an income for allowing brands to advertise to users in the game.
8. NFT Airdrops
Some NFT owners receive tokens and NFTs directly into their wallets. Gambling revenue share platforms often drop daily or weekly tokens into these wallets.
9. Move To Earn NFTs
We have seen many move-to-earn games reward NFT holders for Fit-fi. One well know company Step’n has an App attached to its NFT, and you are rewarded for the number of steps you do each day.
Action Plan
Have a look at our NFT income section of our NFT resource directory. We suggest exploring the websites listed and finding the best one for you.
Would you like to learn where to spend your cryptocurrency, or learn more about this fascinating topic? Visit us today at spendingcrypto.com
Author:
Jonathan Titley
Founder:
spendingcrypto.com
Co-founder:
https://fomomagazine.io
(NFT industry magazine and project reviews)
Co-founder:
https://nftave.io
(NFT marketplace and educational academy)
Disclaimer:
All information in this article is for educational purposes only.
