Non-fungible tokens or NFTs are becoming a hit and are rapidly coming as a passive investment method.
Even the billion worth gaming industry has been revolutionized with this blockchain-based “one-of-a-kind” asset in the digital space. NFTs have become so recognized that even well-respected celebrities, investors, and corporations are working out in creating their own NFTs.
Artists are earning through NFTs by selling their crafts in return for cryptocurrencies, like Ethereum and Cardano. Others make money through the process called “minting.”
You can make NFTs your goldmine even if you’re just starting to get to know about them. It doesn’t matter if you’re a beginner. It doesn’t matter if you don’t have a single idea about them as you are read this now. To do so, keep reading.
However, it’s worth noting that not all NFTs are profitable. Some are worth a good fortune, while others only give little to no returns.
Now here’s how you could kickstart your journey in earning with NFTs:
Research About Non-fungible Tokens (NFTs)
One cannot begin a journey without knowing where he will go. That’s the same with any investment in the market right now. You should start by equipping yourself with knowledge.
Think of it like this; you badly want to go to a specific place because you’ve seen it somewhere on social media, and you think it’s worth going. So, you rushed booking a ticket without thoroughly researching about the place. When you get there, you get The reality didn’t meet your expectation.
The same goes for NFT investments. Some see other people earning thousands, end even millions of dollars from it, so they get into it without actually knowing its ins and outs. So, some ended up having a dead investment.
You might lose large sums of money if you get into an investment without actually knowing what you are jumping into. Knowing what NFTs are, how they work is crucial in actually making money with them.
Get MetaMask
Get a cryptocurrency wallet like MetaMask once you grasp its concept and are ready to take on the challenge of earning through these tokens.
MetaMask is a cryptocurrency software wallet utilized in interacting with the Ethereum blockchain. It is available for use in Chrome, Android, and iOS to access the Ethereum wallet.
If you use it in Chrome, make sure to add it as an extension, so you can efficiently utilize it to monitor, buy, swap, and sell your cryptocurrency.
If you have no idea how to create an account, there’s an instruction given on the same page where you add it as an extension.
Fund Your MetaMask Account
After establishing your own wallet, open your MetaMask wallet extension, go to Buy, and head over on Directly Deposit Ether to get an Ethereum address which you will use in funding.
Technically, to fund your MetaMask wallet through direct deposit, you should first have Ethereum holdings in any exchange.
Another option is to buy directly from your MetaMask wallet. To do this, click Buy, and then Wyre or Transak.
Create an Account in OpenSea
OpenSea is a marketplace for non-fungible tokens, cryptocurrency collectibles, and scare digital items. Users can auction, sell, or buy NFTs through this platform.
After creating an account, you will receive a username given by the platform itself, so you need to edit it according to your liking.
In the Marketplace, you will see varieties of NFTs like music, art, sports, utility, trading cards, etc.
For example, the DropBears NFTs have 10,000 items in the collection. Each and every single one within this collection is randomly generated and created uniquely. They all have special qualities and traits.
The DropBear #3385, one of the rarest NFT within the collection, costs 888 ETH, or nearly $3 million. In comparison, an average DropBear in the collection costs only about 0.04 ETH, or $112.96 US.
In buying NFTs, you cannot just buy any NFT on a whim with the hopes of having their prices increase in the future. You get them before they get into the marketplace before their floor price increase.
Mutant Ape Yacht Club NFT’s floor price is now at 6.6 ETH, which means the lowest price of their average item within their collection is $18,661.83 US. However, before getting as high as this, the price actually started low.
Now that you have an idea of how high prices can get, you need to know how to get these NFTs early with just a low price.
However, if you plan to mint NFTs, remember that no one can guarantee how much you can make out of it. The price will depend on how other people are willing to pay for it.
What comes next is crucial whether you can earn good sums of money or not.
Utilize Rarity.Tools
Rarity.Tools is a platform dedicated to rank NFT collections by their rarity. Through this tool, you will be able to know which NFT is rare, which can serve as a guide on which NFT you should mint.
Through Rarity.Tools, evaluating which NFT is in-demand and those that would sell at a high price becomes relatively easy. It also allows users to see upcoming NFTs, giving them an opportunity to mint early.
Mint a Non-Fungible Token
The first step in minting NFT is, of course, choosing which one to mint. Don’t just pick anything, instead check them out first, and make sure that they have a strong community.
An NFT project without a well-grounded community is bound to fail, so make sure you go with an NFT with active supporters pushing the items. Look at the size of their following and join their Discord group to get updated on what’s happening.
If the project’s management team is not doing their best to make the project work before the release, there’s a bigger chance that they wouldn’t operate properly after the launch. Avoid projects with such moderators. Avoid projects where the community is neglected.
Remember that it is not necessary to choose a big project that will cost you so much money. You could go for smaller projects that have a big potential to grow later.
Examine the project’s roadmap, their plan for the future, and make sure that you resonate entirely with it. If you can’t, look for another project until you find “the right one” for you. Once you have fully decided, go to the website of the NFT.
For example, you want to mint Pawzees Club. From Rarity platform, click on the given site beside the name of the NFT project to be redirected to their official website.
On the website, look for the call-to-action (CTA) button to mint. Note that you need to connect your MetaMask wallet to the NFT project site.
You can actually mint the NFT as much as you want, depending on your budget. Aside from the price of the non-fungible token, you also need to pay the gas fee.
Minting an NFT means having ownership of it. Hence, once the process is finished, you can do anything you want with it. You can auction and sell it however you like.
With numerous applications of non-fungible tokens, it doesn’t seem to be a hype that is just passing through this age. Only the tip of this technology has been explored, and the potential of this industry is immeasurable.
As NFTs demand continues growing, several new tokens might arise, creating a big explosion in the market. If you see how big NFT’s potential is, you might not want to miss it.
