You’ve probably heard about NFTs in the past year or two and wonder how you can make money from them. It doesn’t take a rocket scientist to figure out how to make money from virtual assets, but the process is intuitive. This guide will help you get started and answer some common questions.
What are NFTs?
An NFT is a Non-Fungible Token. An NFT is a special type of token representing virtual assets that are not interchangeable. In other words, it means that each NFT is unique and not representable by any other NFT. This particular characteristic gives users many different opportunities to make money from an asset’s value due to this uniqueness.
What can I do with my NFT?
You can do anything you like with your NFT. The possibilities are endless. Some of the most common things people use their NFTs for are collecting, games, and trading/selling them on marketplaces.
What do I need to get started?
You’ll need an Ethereum wallet and some Ether to pay for transactions at the bare minimum. However, if you’re actually looking to make money with your NFTs, then you’ll also need some more advanced tools like MEW (MyEtherWallet), Metamask (Chrome Extension), or OasisDex (browser).
Where can I find NFTs to trade/collect?
There are many marketplaces, websites, and games to find various NFTs. An example is the OpenSea marketplace, which features an impressive list of virtual assets. The marketplaces make it easy to discover new NFTs, but it’s hard to know if they are worth your time or not – many will be priced way too high and not sell even at discounted prices.
How do I buy/sell NFTs?
You can buy and sell NFTs on many different websites and marketplaces. There are many methods to go about this process, but the most common way is through a website like OpenSea or Rarebits.
What will I do with my NFT once it’s bought?
It depends on what type of asset you bought and what you want to do with it. If it’s a game asset, like CryptoKitties, then you’ll probably want to use them in the game. If it’s for trading or collecting, then you’ll want to flip it on the marketplaces.
If I buy something with my NFT, can I sell it later?
Yes! You can always sell your asset for whatever price someone is willing to pay. You may or may not get more than what you originally paid, though. People buying an NFT generally try to get them for the lowest price possible, so you should hold onto your investment and allow it to grow in value.
Once you get started with buying and selling NFTs, you’ll find a lot of information and tools to help you grow and develop your skills even more. Of course, you should always keep your eyes open for good deals that you think are going to explode. It’s also best to keep an eye on markets and what people are looking for so you can find those diamonds in the rough.
That about sums up the very basics of trading NFTs. It takes a bit to get started, but if you stay dedicated and continue exploring, then you’ll be well off in no time.