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How To Make Money with NFTs as a Beginner In 2022 [Different Ways + Step By Step Explanation]



You bought an NFT for 200 dollars and sold it a week later for 3000 dollars, you just made a 2800 dollar profit!!!

Yes, This is the potential of NFTs and you can also quickly make money with nfts even if you are a complete beginner.

Non-Fungible Token (NFT) is a concept many have heard of in the last year, and the idea has almost taken off in social media and elsewhere online. Many people have a hard time understanding what NFTs are and what they are used for.

This guide will explain what NFT is and how to make money with NFTs as a beginner, in a simple and beginner-friendly way!

What is NFT (Non-Fungible Token)?

A Non-Fungible Token (NFT) can be compared to a digital asset, for example, in the form of a file. This asset is stored on a blockchain and is 100% unique. This is the same technology used, e.g. Cryptocurrency.

The blockchain is a way to store distributed (decentralized) digital data. Think of it as an extensive database spread over millions of computers so that no one can independently adjust the information in the database.

This has made NFTs beneficial in terms of assets that are usually easy to counterfeit, e.g. Art or collectables. With an NFT, the buyer can ensure that the asset is genuine and original as it is impossible to counterfeit and replace.

In other words, if you buy an NFT, you have an asset - just not physically in front of you. Whether it's a painting or an action figure, you own the thing digitally.

The name “Non-Fungible token” can easily be perceived simply as a “token on an asset that is unique and irreplaceable.” A token can be considered evidence, allowing the owner to prove that they own the asset.

Assets That Can Be Sold as NFTs

An NFT can be anything. These unique and fully digital assets are stored on blockchains, and in many cases, they are photographs or works of art.

However, there are other assets that are suitable for the NFT format, such as domain names, card collections, game products, music and the like.

In most cases, an NFT is about digital art. This is because you can often simply see who the owner is with physical art, for example. After all, it hangs in someone's home. In digital art, the owner is determined in the blockchain by means of NFTs.

In terms of digital art, you can think of a photo, picture, video, 3D model, digital objects or GIF. In fact, anything you find online can be turned into an NFT, from Tweets to a Photoshop version of the Mona Lisa.

Many do not know that in practice, an NFT can also be linked to a physical asset. For example, you can buy a symbol from owning a bottle of expensive wine somewhere in France.

An NFT cannot be Split, Modified or Copied


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Since NFT is based on a blockchain, it can be easy to compare it to cryptocurrency. However, there are specific differences. Although you can buy 0.0001 of a Bitcoin, you can only buy one of an NFT, and it cannot be split.

An NFT does not change either, as it is stored on a decentralized blockchain. It is also impossible to copy NFTs, which makes the technology very useful for brands and products prone to counterfeiting.

The proof that comes with an NFT cannot be taken from the owner. The only exception is if the owner of an NFT loses a private key and password and ends up in the hands of others.

What is the Future of NFT

It would take several years from when NFT was first experimented with until it would gain momentum in the market. As early as 2012, NFT trials were conducted. In 2018, NFTs had a market value equivalent to approximately $ 41 million.

In 2019, this value increased by a further 245% and then by 139% in 2020. By 2020, NFTs had a total value of $ 338 million.

In 2021, the trend did not reverse, and there are many indications that NFTs are more than just a trend.

Why You Should Invest in Non-Fungible Tokens (NFTs)

It has long been a challenge to approve or verify digital assets, as files can be easily copied. However, if you have an NFT, it is easy to prove that the asset is 100% authentic.

Thanks to blockchain technology, it is always possible to trace the asset back to the manufacturer/creator. If this is not possible, it indicates that the asset is a counterfeit.

How Do You Buy and Sell an NFT?

Now, I hope you have understood what is nft and how it works. Hence, let us look at buying and selling NFT projects in the following steps.

Imagine an artist putting a digital artwork up for sale on a trading platform. The artist can then set a price or put the artwork up for auction. They can also decide what royalties they want for resale.

You, as the buyer, can bid on the artwork or buy it directly. You will then receive a so-called smart contract. This is a contract stored in a blockchain.

You can then download your NFT in the form of a file, and you will also receive a certificate which you can save in a digital wallet. The seller who sold the artwork also receives his payment.

If you resell the artwork five years later, the contract with the work follows, so the new owner takes over. You, as the seller, will then receive payment for the artwork, and this will correspond to the requirement you have for commission. The commission can, for example, be 10%.

How Does an NFT Get its Value

As with physical art, the value of an NFT is determined by what a madman gives for it . The price is also driven up considerably by supply and demand .

If the Mona Lisa were now for sale for $1, almost everyone in the world would want to have it. In an auction, the price then goes up until there is only one buyer left. After all, there is only one Mona Lisa. This scarcity means that millions can be paid for art and NFTs.

There are several reasons why there are many buyers for NFTs. Buyers often find something fun or cool and want to be a part of it by buying the NFT.

However, making money with NFTs is often done precisely by buying an NFT and then selling it for more. This form of increased demand for an NFT contributes to the price increase.

It is important to understand with NFTs that when you buy an NFT, you are officially the owner, but the image/video can still be found elsewhere on the internet. You are the owner, but not the holder of the copyrights. A bit like you come across pictures of paintings and statues on the internet.

If you want to make money with NFTs as a beginner , there are two ways. The first is by buying and selling NFTs . The second is by simply selling your own art as NFT.

Where to Buy NFT?

There are several methods for you who want to get started with NFT trading. In principle, it is possible to develop your smart contract. This can then be distributed in a blockchain. You can then pay the cost of the transaction and execute the transaction.

However, in our NFT guide for beginners, we emphasize that it is easiest to shop through an NFT marketplace. Here are some of the most popular options in this regard:

How to Make Money with NFTs as a Beginner



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Now that you understand what gives an NFT value, you also know that it can change value. It's all a matter of supply and demand.

In order to make money buying and selling NFTs, it is crucial to understand which NFTs have the potential to increase in value. This requires research.

Before we look at how to find good NFT projects, it's good to know how to buy an NFT in the first place.
  1. Create a Metamask wallet. You can see this as your digital wallet in which your NFT is stored when you create it. This is also the storage for your Ethereum.
  2. When you have your wallet up and running, you can use this to create your OpenSea account.
  3. Transfer Ethereum to your MetaMask wallet. Do this from a crypto exchange such as Bitvavo or buy Ethereum directly with dollars from your credit card and Apple Pay.
  4. Search on OpenSea.io for an NFT you want to buy and complete the transaction, including gas fees.
  5. When the NFT has been bought, and it is in your wallet, you can put it up for sale again on OpenSea.io for a higher amount.
The above is how to buy an NFT on a marketplace like OpenSea. This is the easiest way and is most similar to placing an order at a Nifty Gateway Hic and Nunc. Pretty much the same principle applies to other marketplaces too.

How to Buy NFTs Through NFT Auction or Drop

Other ways to buy NFTs are through an auction or an NFT drop. This can give you advantages and is therefore reasonable to mention.

Auctions

This is just like a real art auction, but digital. This can bring the price up considerably, but it can also give you the chance to get hold of something valuable for a small amount.

Many NFT auctions take place with a time limit; whoever makes the highest bid within the time frame receives the NFT.

NFT Drop

This often revolves around collectables—a collection of sometimes 10,000 NFTs that are created by a code. You don't know in advance what you will get, but you can only mint an NFT and hope that you can get your hands on a rare collectable that you can resell for more money (on an NFT marketplace).

How to Choose the Right NFT?

If you understand how to make money with NFTs as a beginner, now is the time to find the best NFT projects that have the potential to increase significantly in value. Here are a few things to keep in mind before buying nfts:
  • Who is the creator of the NFT? Is this one popular, and has it launched other successful NFT projects?
  • What do you feel about this project? Is it something you want to support, and do you think others feel the same way?
  • If it is a game NFT, then it is essential to what its function is within the game. If the NFT has a unique ability, it can push its value up.
  • Is the NFT part of a collection, and does it have rare properties?
  • Is hype being created on social media around the NFT, and is the maker of the NFT promoting?
  • Has the NFT ever been sold for profit? You can see this on OpenSea.io by looking at the price history. Then this indicates that there are probably more people who want to get their hands on the NFT.

How to Make, Sell an NFT and Make Millions

Suppose you are a designer and plan to create digital art. Or you have art and want to digitize it. Then NFTs are a godsend. It makes it possible to earn much more money from designing than was previously possible.

There are opportunities here, especially if you have already built up some reach (followers on social media, etc.).

NFTs are a reasonably simple way to turn your fame and authority into money. The fact that many artists received less income during corona may have contributed to the hype that has arisen here.

Now, if you're thinking, I'd like to release my own NFT, but I'm not famous, don't worry. Let's go through how to release an nft step by step. Even then, there are countless possibilities to make it a success.

#Step 1. Create an Art

If you want to sell something as an NFT, it must be an image, GIF, video or 3D model. This can be as simple as a coloured square.

However, you will understand that a square may be a bit difficult to sell; after all, who wants that?

So feel free to grab your Photoshop or Paint and make something fun, then you can turn this into an NFT in the following steps!

There are also many so-called 10K collectables. These are generated based on a smart contract. However, this is more difficult because you have to make a smart contract yourself. With such a collection of sometimes 10,000 different pictures, it is not clear how the pictures will come out in advance. Still, because you see them so often, I'd like to show you what it's all about.

People often buy pictures without knowing which picture they will eventually get—often hoping that their picture is rare and that they can resell it for more money. One of the most famous extensive collections is the Bored Ape Yacht Club.


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If you're going to release your first NFT, you probably start with a picture you like. I'll tell you in the next step how to turn this image into an NFT!

#Step 2. Publish it on NFT

Many people are afraid that it will all become super technical and difficult. But as with any technology, you don't have to fully understand how it works here as long as you know how to use it.

For example, in the NFT world, many developments are going on to make it easy for you to create, hold, buy and sell NFTs.

You have to make a choice in this step, that is which blockchain you will place your NFT on. The most popular options at the moment for that are Ethereum, Polygon, Solana, Binance Smart chain and Cardano.

If you do not have much technical knowledge in-house and do not want to make your smart contract, you can make this your NFT via an NFT marketplace. This is a place where NFTs are listed for sale. Many of these marketplaces allow you to create an NFT and associated smart contract yourself. The latter is important because this is how it will be placed on the blockchain.

Okay, that might be a lot of new terms. Don't worry. The practice is quite simple! The largest NFT marketplaces per blockchain are:

  • Opensea.io – Largest NFT marketplace for Ethereum and Polygon where you can easily create and sell NFTs yourself.
  • Solsea.io – NFT marketplace for the Solana network. This is still in full development but has already seen the first successful projects.
  • Binance Smart Chain – NFT marketplace for the Binance network. Binance is the largest crypto exchange globally and therefore has much potential for the future.
  • CNFT.io – NFT marketplace for the Cardano network. Still in its infancy.
There is a lot to be found on the internet. When looking for good information to choose the blockchain and NFT marketplace, this is often endless. Because of the newness of the market, not all information is equally relevant.

My advice is simple: Go for the most significant marketplace with the lowest costs. That quickly brings you to Opensea.io. So let's take a look at how to make an NFT through that NFT marketplace.

The steps are described compactly below.

  1. Create a Metamask wallet. You can see this as your digital wallet in which your NFT is stored when you create it. This is also the storage for your Ethereum.
  2. When you have your wallet up and running, you can use this to create your OpenSea account.
  3. Before creating your NFT (mint), there must be some Ethereum on your wallet to meet the gas fees. Transfer it via your favorite crypto exchange or from your offline wallet (if you already have one). When you make your NFT via Polygon, you do not have to pay any gas fees at OpenSea. This is certainly a good option for the first time!
  4. When you are logged in to OpenSea, you can easily create your NFT by clicking 'Create' and uploading the image or video. Then fill in some information such as the name and description.
  5. Keep in mind that on OpenSea, you can opt for the Ethereum and Polygon blockchain. Be aware that the gas fees (costs you pay to record the NFT in the blockchain) of Ethereum can run into the hundreds of dollars, while with Polygon, these are (almost) nothing. For your first NFT, the Polygon blockchain will suffice.
You have created your first NFT of your own. Congratulations!

Millions of NFTs are created, and coming out of them takes effort. However, you will see that buyers are not immediately ready to take over your NFT for thousands of dollars. So let's look at ways to promote your NFT.

#Step 3. Promote You NFT Project

Marketing is the most critical step to making an NFT project a success. Of course, you often hear projects sold for ridiculous amounts, but setting up something like this yourself is not that easy.

So when you have made an NFT, it is time to start the promotion. In other words, a good NFT project begins with the promotion before an NFT exists. Reaching the target audience takes much time.

Constantly try to put yourself in the position of the other. Why would someone buy your NFT? Or rather, would you buy your NFT? Only when the answer is 'yes' is there something to expect.

Is NFT Worth Buying?

Yes, especially if you have to buy collectables, art or other assets that can easily be counterfeited otherwise. A digital asset may seem pointless to some, but many have opened their eyes to this modern concept.

Explore NFTs on OpenSea or others and find out if this is for you.

FAQ On How to Make Money with NFTs as a Beginner

Which is the Best Marketplace for NFT?

OpenSea is a recognized platform for buying and selling NFTs and can tempt with a large selection of digital assets.

What Does an NFT Cost?

An NFT can be both expensive and inexpensive. The most expensive NFT that has been sold so far is the artwork "EVERYDAYS" from Beeple, which cost 69,346,250 US dollars.

Which NFT Collection is Most Popular?

The NFT collection CryptoPunks is sold at OpenSea and is a very popular collection consisting of 10,000 different characters.

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