Make Money Trading NFTs in 2022- 5 Profitable ways
The last 18 months have seen a meteoric rise in the NFT sector, providing investors with unique methods to earn profits. Lately, digital assets have become an attractive investment option. And the trend is expected to continue growing in prominence in the future.
This article will explore how to earn profits from NFTs. It highlights the most lucrative strategies for 2022.
Pre -seed investing in NFTs
Early investments in promising NFTs
Investing in potential new collections early before their value soars is a good NFT strategy. Many of the best NFTs to buy were minted at low prices and gained value.
In 2017, CryptoPunks sold for $1 to $34. When the NFT craze hit in 2021, these ‘Punks’ were valued due to their first-mover status. One Punk sold for $24 million to a celebrity.
‘Flipping’ NFTs is another profitable strategy. Fortune.com defines flipping as buying low and selling high for a profit. Flipping is a short-term investment technique, unlike HODL.
Finding the greatest NFT to make money and flip it is difficult due to market rivalry. It is conceivable to flip NFTs for profit, but one must consider several aspects. Some of these are token’s functionality , development team and community support.
Minting is depositing a digital item (like digital art or music) on the blockchain. Once the asset is in the blockchain, you can trade it on the best NFT marketplaces to monetize it.
Minting NFTs is easy with leading marketplaces like Lendochain. Assuming you have generated and minted your own NFT, you then wait to see if anyone buys it. Most collections will not be visible to investors unless they are adequately marketed. Once your NFT sells, you can withdraw the money to your crypto wallet (without the marketplace’s charge).
NFT Play-to-Earn Rewards
Indirectly making money with NFTs involves earning interest on P2E rewards. One can save token awards like FIAT cash to produce an annual income. Due to increasing demand, cryptocurrency yields are sometimes greater than traditional banks.
One can stake crypto using NFTs. NFT staking can take several forms, but the most common is ‘locking up’ digital assets on a DeFi network for incentives. On Proof-of-Stake (PoS) blockchains, the owner earns the network’s native cryptocurrency.
This mechanism validates network transactions, like when crypto holders stake tokens. Since this industry is very young, only a few platforms provide NFT staking.