People get into cryptocurrencies to earn money. However, a lot of people either fall into the increasing cases of scams in the crypto world or give up along the way. Truth to be told, there are a pretty handful of methods you can use to earn money with NFTs other than the typical way of trading.
Now, we are able to directly invest in our favorite creators through social tokens and NTFs. These include investing in NTFs that would grant you royalties from music, investing directly in creator tokens or purchasing a creator’s NFT, or even collecting celebrity owned NFTs.
Method 1: Buy NFTs Directly
The most uncomplicated way to bet on a creator is to purchase NFTs or social tokens directly.
If the creator makes digital art, music, and photography, they can turn this into an NFT, sell a one-on-one version of that artwork, or create a collection with several entities linked to the same art piece.
Information indicated in an NFT essentially allows a creator to “autograph” or patent their art. By doing this, even if a piece of music, image, or digital art has been shared countless times, the NFT you are paying for is still something unique and original. Every token is listed in a permanent ledger through blockchain technology.
For example, you see one artwork that has ten NFTs. You bought one. You can consider buying one out of those ten as a fractionalized interest in those art pieces because each piece of that artwork is going to add up to 100 of the value of that art. This works like how shares in a company add up to the total equity of the entire company.
The biggest factor in the increase of NFTs value is the popularity of the brand, creator, and audience size. By considering these factors, you can choose or create your own strategy. If you are the type that would go for investments with high risk and high reward, then you could put up your funds on small-time creators that no one has heard of yet.
Method 2: BitClout
BitClout is a new social network that mirrors the Twitter interface but counts monetary elements into people’s profiles. This platform allows you to buy coins that represent digital creators, and the value of this coin will rise and fall based on the value and movement of their brand.
To monitor the coin’s fluctuating value, you could visit the creator’s profile and see the real-time price placed beside their name. The image above is an example. You can see that you could buy Logan Paul for $11,666.28 coins.
People are now diving into BitClout, and some are even creating apps where you can use those coins to gain extra bonuses. For instance, creators may create inboxes to send them personal messages, and those messages might cost you a certain number of coins. Or perhaps, there’s no need for you to pay coins, but you will be required to hold a certain number of coins in your threshold for you to message them.
If you plan to try this method, be aware that BitClout has started off with a bit of controversy, perhaps, because of the aggressiveness of their growth hacks for some people. There are circumstances that people are creating fake profiles. Moreover, there is still no clear process on how creators could withdraw their money from the site until now.
Despite the platform’s flaws, BitClout has made a good choice for gearing towards its decentralization. Once this future decentralized social network is established, we would see early users and investors would make a lot of money.
Method 3: Buy NFTs Alongside the Creator
Start by scouting a creator that holds massive potential or a creator that is already famous in the industry and possesses a vast audience. Once you find your best pick, all you have to do is buy into the collections they buy into.
Naturally, people are incentivized to promote products they invest in, and a creator who holds many audiences has a significant impact and sway on public opinion.
You could take Elon Musk as an example— once he tweets, he greatly moves the market. Another is Ninja, an American Twitch Streamer who rose to fame by playing Fortnite. Ninja would show off his rare cosmetic skins from the game, and his influence on the community would make many of his fans buy and use those same skins. Fans do this to identify themselves along with their favorite streamer. This is how powerful people with broad audiences are.
Method 4: NFT Trading Cards
If you are into sports and have a good eye for talents, you might want to consider NFT trading cards. As of now, the most widespread sports games are NBA Top Shot, Sorare, and Topps MLB. And just like how earning from the traditional collection works, the NTF trading card’s process goes the same.
You have two options in buying an NFT card.
- Buy “brand name” or popular athletes.
- Buy rookies or “newbies” that you think hold great potential, then hold.
Buying cards with big names could bring you money, though getting your hands on such would put you in a large market with a big competition. On the other hand, buying a no-name but excellent athlete could bring you bigger earnings once they reach the prime years of their career.
Method 5: Royalties
Through NFTs, music fans are given an opportunity to earn royalties for some songs.
There is a platform called BAND Royalty which buys song rights from famous artists like Justine Timberlake, Jay Z, Beyoncé, and will expand to a lot more. NFT collectors will earn 50% of all the royalties paid out when songs are played on radios and apps like Spotify. If you buy one, you will get your fair share in the 50% earnings of collectors.
Method 6: Provenance
In a nutshell, this method tells you to buy something previously owned by a celebrity or any well-known personality. The previous ownership would give the item a collectible value. We often apply this on real estate, where houses previously owned by celebrities get premium selling prices.
You can pick an artist according to your liking and manually track if they have revealed the NFT that they own to the public, and then reverse engineer it to find their wallet. And whenever you see the wallet address selling an NFT, what you have to do is to buy it. However, you also need to consider some factors like pricing and potential.
Key Takeaways
NFT is a new investment scheme that’s still under exploration. There’s still a lot to discover about them. Additionally, putting a price on digital art can be tough, making NTFs an incredibly risky investment.
Though there’s a big possibility that NFTs will dominate the market in the coming years, you should still be mindful of the funds you will allocate to them. These are the methods you can use to make money using crypto. However, invest at your own risk.
