Connor BrookeThe exponential growth in the NFT market over the past 18 months has offered up numerous exciting ways for investors to generate a return. Digital assets have become a compelling way to diversify investment portfolios – with this trend set to become increasingly popular in the years ahead.
This guide will discuss how to make money with NFTs in detail, highlighting the most profitable approaches you can take before showing you which trading platforms are the best for investing in NFTs today – all from the comfort of your own home.
The Best Ways to Make Money with NFTs
If you’re wondering how to make money with NFTs, it’s vital to understand the approaches that produce the greatest chance of profitability.
Listed below are ten of the best methods you can employ to make money on NFT tokens – all of which will be discussed in the following section:
- Invest in a Play-to-Earn Tamadoge NFTs
- Play-to-Earn (P2E) Silks NFT Games
- Receive Compounded Gains from a HFT Fund by Investing in the Uncharted NFT
- Invest In A Passive Cryptocurrency Mining Protocol
- Invest in Promising New NFTs Early
- NFT HODLing
- Flipping NFTs
- Minting Your Own NFTs
- NFT Trading
- Staking NFTs
- Generating Royalties
A Closer Look at How to Make Profit with NFTs
When researching how to buy NFTs, you should pay sufficient attention to the approach you will take to generate a return. Thanks to the growth of the NFT market, there are numerous ways to produce profits through NFTs – whether that be actively or passively.
With such a saturated NFT market, some projects are offering the best NFT giveaways to encourage new users to engage with a variety of NFT collections.
With that in mind, let’s dive in and explore how to make money with NFT tokens by reviewing the most profitable strategies that you can take:
1. Invest in a Play-to-Earn NFT Project Called Tamadoge
Since CryptoPunks are now out of the grasp of most retail traders, what is the best NFT to make money using this strategy? Tamadoge is an exciting new project that combines meme coin potential with NFT ownership and play-to-earn gaming. Currently available on the OKX centralized and decentralized exchanges, Tamadoge cemented its place as one of the year’s best crypto presales after raising a stunning $19 million.
The pets are based on 90s craze Tamagotchi, but in full 3D. Holders of the pets will feed, care for them and take them for walks to watch them grow – then once they are fully grown, they can do battle with other holders for the chance to climb up a leaderboard and earn rewards.
Pets will then transform from 3D to augmented reality (AR) in Q4 2023, allowing holders to take their pets out into the real world to explore and hunt for tokens.
While Tamadoge managed to sell out its presale significantly ahead of estimates, that’s not even the project’s most impressive feat. After raising $19 million, the project has since been listed on a number of prominent exchanges including OKX, LBank, and Uniswap. This led the TAMA token to soar to nearly $0.20, marking close to a 1,900% increase over its early presale price and over a 600% premium compared to its listing price.
While the token has already been performing well, things are likely just getting started. The project launched the first of its NFT collections on October 6th with 100 ultra-rare NFTs up for grabs. These NFTs will have increased stats, making them perfect for boosting earnings upon the release of the Tamadoge P2E game. The launch of these ultra-rare NFTs, will be followed by 1,000 rare and 20,000 common NFTs slightly later down the line.
As the first of the core features to be rolled out, the release of the various Tamadoge NFT collections will likely do wonders for the TAMA token. As such, it could be worth stocking up on tokens before the release of additional functionality pushes TAMA to new heights.
To keep up to date with the latest from the Tamaverse, join the Tamadoge Telegram group. TAMA NFTs are now live to buy on Opensea.
2. Play-to-Earn (P2E) Silks NFT Game
Another approach if you’re wondering how to profit from NFT tokens is to take part in play-to-earn (P2E) NFT games. Many of the best NFT games now employ P2E features, which allow players to generate rewards through skilled gameplay. These rewards are usually denominated in the platform’s native token – meaning they can be spent on in-game items or exchanged for FIAT.
Using NFT games to make money has become a popular approach, with numerous exciting platforms springing up that offer a way to generate consistent income. Axie Infinity is one of the most prominent since users can ‘battle’ other users and earn rewards. In addition, since most important in-game items are structured as NFTs, the digital currency earned as rewards can be ‘reinvested’ into better items – leading to increased performance.
Investors can also buy Axie Infinity tokens (AXS) on cryptocurrency exchanges to gain indirect exposure to the P2E space. Given the success of Axie Infinity, other projects are beginning to gather momentum, such as Silks, The Sandbox, Decentraland, and more.
Silks is a particularly interesting P2E game because of what it is conceptually. It’s a game all about thoroughbred horseracing, but it also mirrors the real world of horseracing. If a horse wins in the real world, it is reflected in the game. It has enormous marketing potential. Silks is currently running a sale for its Silks Avatars, with over 65% of NFTs already sold out.
Cryptoassets are a highly volatile unregulated investment product.
3. Receive Compounded Gains from a HFT Fund by Investing in the Uncharted NFT
Another way to make money with NFTs is to purchase one connected to a real-world functioning trading fund that distributes earnings to holders. One excellent option is to invest in The Uncharted NFT collection, a project that bridges the gap between TradFi and the Web3 industry.
Owners of the Uncharted NFT collection earn 20% per month, distributed to all holders each quarter. The revenue is generated from a high-frequency trading (HFT) fund with a proven track record that can boast past performance of up to 400% per annum.
All revenue generated from the NFT sale is deposited into the XETA Capital Fund (XCF) to be deployed in the HFT algorithm. The fund conducts trades with the capital as dictated by a complex and secure HFT algorithm and a team of experienced traders to generate revenue for all NFT holders.
Buying into the NFT collection puts holders on a three-year journey of investment, compounding, distribution, and profits. Then, as the fund continues to compound and grow, all holders receive a percentage of quarterly profits through an airdrop.
The team estimates holders will earn 20% per month based on the previous track record of the HFT Fund’s performance. XETA Capital is a 90 days startup that raised $3.2 million and paid back $7.2 million to investors – during a bear market!
At the end of the three years, the project will split all the revenue in the fund between NFT holders and The Uncharted LTD company. However, if you wish to exit before the term, you can always sell your NFT on OpenSea.
The NFT collection consists of 5,000 Southern Ring Nebula NFTs that provide a ticket to explore the depths of outer space in The Uncharted. You can purchase each NFT for $295 in ETH when the collection launches during Q1 2023.
Overall, The Uncharted NFT collection is opening the doors for regular people to invest in traditional finance products that were previously only accessible to high-net-worth individuals.
4. Invest In A Passive Cryptocurrency Mining Protocol
Another method of making money with NFTs in 2023 is through passive cryptocurrency mining. One innovative project in this space is Copium Protocol, a mining investment ecosystem that provides a simple solution to participate in passive cryptocurrency mining.
The Copium Protocol is centered around Copium Mining, a real-world, established cryptocurrency mining facility. The mining facility is located in New Zealand, and it’s powered by 100% clean, green, renewable energy generated in the Southern Alps.
The project’s initial phase will launch by releasing the Copium Protocol Investor Pass – a collection of 10,000 NFTs that can be minted on November 9th, 2022, on the Ethereum network.
The NFTs will be sold through a Dutch Auction via the project’s website at a starting price of 3.5 ETH. However, the first 2000 people that register early on the project’s website will receive a guaranteed mint spot at a lower fixed price of 3 ETH.
The revenue generated from the Investor Pass sale will be used to upgrade the Copium Mining facility. Then, the daily mining revenue generated by the facility will be used to purchase Copium Coins from the open market, providing sustained demand for the platform’s native token.
Copium Coins purchased from the Copium Mining revenue will be sent to a burn address, making Copium Coin a deflationary asset.
Furthermore, all Investor Pass holders are entitled to the following benefits:
- An exclusive airdrop of Copium Coins. Each NFT holder will be entitled to receive 10,000 Copium Coins via a gas-only transaction
- The ability to stake the Investor Pass on the platform in exchange for a daily allocation of 10 Copium Coins per staked NFT
- Automatic entry into monthly Copium giveaways
The team will implement the Copium Staking Protocol following the release of the successful Investor Pass. The staking protocol allows users to stake their Copium Coin holdings in exchange for varying, high-yield interest rates.
Holders of the NFT Investor Pass are exclusively entitled to higher staking rewards. In fact, the minimum Investor Pass holder rate is still higher than the maximum public staking rate. This means that you should own one of the NFTs if you wish to maximize the return on your investment.
Overall, Copium Protocol provides a fantastic opportunity to make money with NFTs in 2023. Purchasing the NFT will provide you with an allocation of Copium Coins and help improve the mining facility. In turn, the revenue generated from the mining facility will help to create a sustained demand for Copium Coin on the open market and make it a deflationary asset.
5. Invest in Promising New NFTs Early
One of the best ways to make money on an NFT is by investing in promising new collections early before they skyrocket in value. Many of the best NFTs to buy were initially minted at a low price, with their value increasing exponentially in the weeks and months after launch. Some of the best utility NFTs have so much potential to enter mainstream adoption. Check out our guide on the best utility NFTs for more information.
A prime example of this is CryptoPunks, which could be purchased in 2017 for between $1 and $34. When the NFT craze took over in 2021, these ‘Punks’ became incredibly valuable due to their first-mover status within the space. This culminated in these NFTs being purchased by celebrities and other high-profile names – with one Punk even selling for $24 million!
What is Battle Infinity?
Battle Infinity is another project that has a multi-strand ecosystem and a low entry price. Battle Infinity is a revolutionary play-to-earn (P2E) experience, offering a rich virtual world where players can interact with others and generate rewards through skilled gameplay. These rewards are denominated in IBAT, Battle Infinity’s native token, which players can use to invest in the project’s NFTs.
As one of the coolest NFT projects for 2023, Battle Infinity uses these digital assets in several exciting ways. One approach is to structure the players within Battle Infinity’s fantasy sports league as NFTs. In turn, this makes it quick and easy for users to trade these players with one another whilst also providing a way to benefit from price fluctuations in the secondary market.
Another NFT-based mechanism within Battle Infinity’s world is the plots of virtual land that users can buy. These land parcels are located in the ‘Battle Arena’ – Battle Infinity’s metaverse project. Virtual land owners can then rent the land out to others or advertise via in-game billboards.
Ultimately, this makes Battle Infinity one of the best NFT land projects for speculation and passive income. The IBAT launched on decentralized exchange PancakeSwap in mid-August and saw early investors net peak profits of 700%, with a total market cap of around $60 million. IBAT will next be listed on centralized exchange LBank on August 26, with more listings in the pipeline.
NFT investors looking to stay up-to-date with this project can do so through the Battle Infinity Twitter page or by joining the official Battle Infinity Telegram group group.
6. NFT HODLing
One of the best strategies to employ when researching how to make money with an NFT is to invest and ‘HODL’. For those who haven’t heard the term, HODL stands for ‘Hold On for Dear Life’ and was popularized by retail traders during the GameStop short squeeze of 2021. Since then, the term has been used to describe an investment strategy where you simply do not sell – regardless of what happens.
Investors who buy cryptocurrency will know that there are both pros and cons to adopting this approach. However, if conducted strategically, HODLing can be a great way to make money with NFTs. Going back to our example of CryptoPunks, investors back in 2017 may have opted to sell because the value of their Punk was not going up. However, those investors who chose to HODL will have reaped the rewards when prices skyrocketed in 2021.
Needless to say, this approach won’t always work, as some NFT collections will not experience the uptake necessary to generate price momentum. However, many of the projects listed on our NFT calendar are already beginning to gather momentum from social media – meaning there could be some great investment opportunities in the weeks and months ahead.
Cryptoassets are a highly volatile unregulated investment product.
7. Flipping NFTs
‘Flipping’ is another effective way to make money with NFTs. As defined by Fortune.com, flipping refers to the process of buying low and selling high, thereby producing a positive return. The critical distinction between flipping and other investment strategies is that flipping is usually a very short-term approach, contrasting with the HODL strategy described above.
Finding the best NFT to make money and then flipping it for a profit is challenging, especially since there is so much competition in the market nowadays. However, it is not impossible – although there are numerous factors to consider when researching how to flip NFTs for profit.
The token’s utility should be at the forefront of your mind, as this will be one of the main reasons other investors would purchase it. Community backing should also be considered, along with the development team behind the project. Finally, the visual appeal of the NFT is essential to note, as most investors will wish to display their digital art as their profile picture on social media or via a digital art gallery.
Cryptoassets are a highly volatile unregulated investment product.
8. Minting Your Own NFTs
A common approach for those wondering how to make money on NFTs is to mint your own NFT. Minting refers to the process of taking a digital asset (such as digital art or music) and placing it on the blockchain. Once the asset is minted to the blockchain, it can then be traded on the best NFT marketplaces, allowing you to monetize your creation.
Minting NFTs is a relatively straightforward process, with top marketplaces like NFT LaunchPad making the process easy for beginners. Due to the enormous growth in the NFT market, the competition among creators is intense, with new collections springing up every day. Thus, if you wish to take this approach, you’ll need to ensure that your creation stands out from the crowd.
Assuming you have created your own NFT and minted it to the blockchain, it’s just a waiting game to see if someone buys it. This is where marketing plays an important role, as most collections will not be visible to potential investors unless they are promoted effectively. Once your NFT sells, you will receive the proceeds from the sale (minus the marketplace’s fee), which you can withdraw to your crypto wallet.
Cryptoassets are a highly volatile unregulated investment product.
9. NFT Trading
In a similar vein to NFT HODLing and flipping NFTs is NFT trading. This process is more geared toward making incremental capital gains over the long term rather than getting in and out of the market as quickly as possible. Investors interested in NFT trading will often buy and sell an NFT for a small profit and then repeat this process again and again.
Ultimately, this process requires much more patience and market knowledge than HODLing, as it relies on purchasing undervalued NFTs and then selling them at the right time. However, this can result in exponential capital gains over the longer term, which is why this approach is so popular amongst experienced investors.
Cryptoassets are a highly volatile unregulated investment product.
10. Staking NFTs
Those interested in crypto staking will be pleased to know that this process can also be related to NFTs. NFT staking can come in various forms, although the primary mechanism used is to ‘lock up’ their digital asset on a DeFi platform and receive rewards in return. This usually occurs on Proof-of-Stake (PoS) blockchains and rewards the owner with the network’s native token.
Ultimately, this process helps validate transactions that occur on the network, much like when crypto holders stake their tokens. Since this area of the market is still in its infancy, there are only a few platforms that offer NFT staking – mainly in the P2E gaming sector. Examples of these platforms include MOBOX and Zookeeper.
If you are wondering how to make money with NFTs passively, then this approach is perhaps the most optimal. APYs will vary from platform to platform and depend on the exact NFT you are staking. However, with more NFT projects becoming wise to this flourishing area of the market, we’d expect this process to increase in popularity throughout the year.
Cryptoassets are a highly volatile unregulated investment product.
11. Generating Royalties
Royalties go hand in hand with selling NFTs and form one of the most exciting elements of the market. During the minting process, the creator can set their own royalty percentage, which means that any secondary market sales will provide the original creator with a payment. Most NFT royalty levels are set at 5% or 10%, although some do go higher than this.
Many of the most expensive NFTs will have a royalty percentage embedded into them, which provides the creator with passive income whenever they are resold. Certain NFT marketplaces will cap royalties, usually around 10%, to ensure that these assets are still attractive to future investors.
However, creators must ensure that their NFT collections are worth investing in to make the most of the royalty process. There’s no point in setting royalties if the NFT will only be purchased once – so embedding unique use cases or benefits into NFT ownership is crucial to producing a worthwhile income stream.
Cryptoassets are a highly volatile unregulated investment product.
Where to Invest in NFTs
Now that you have a comprehensive understanding of how to buy and sell NFTs for a profit, let’s turn our attention to the investment process itself. If you’re looking to invest in new NFT projects for flipping or simply wish to buy an NFT and HODL, choosing a safe and reliable marketplace is vital to facilitate your purchase.
With that in mind, presented below are our top picks for where to invest in NFTs this year:
1. NFT LaunchPad – Overall Best NFT Marketplace
Our number one pick when it comes to NFT marketplaces is NFT LaunchPad. NFT LaunchPad is ideal for those wondering how to make money with NFTs as a beginner since the platform offers both investing and minting services. At present, NFT LaunchPad provides integration with the Binance Smart Chain (BSC) and Polygon networks – although more partnerships are planned soon.
In terms of NFT investing, NFT LaunchPad offers a wide range of categories to choose from, including digital art, animations, games, music, videos, and more. All NFTs are denominated in wBNB, which can be easily purchased from the best altcoin exchanges. In addition, NFT LaunchPad has full support for MetaMask wallets, with Trust Wallet support arriving in the near future.
Minting is also easy with NFT LaunchPad, and users can choose from various formats – including MP4. It’s easy to create single or multiple collections, with options for fixed-price sales or auctions. NFT LaunchPad even allows users to set their own royalties, providing a pathway towards a passive income stream.
Your capital is at risk.
2. Crypto.com NFT Marketplace – Popular NFT Marketplace with Low Trading Fees
Another top NFT marketplace to consider is Crypto.com. Most people will know Crypto.com as one of the world’s leading cryptocurrency exchanges, although the platform launched its own NFT marketplace in 2021. The marketplace offers NFTs denominated in CRO and ETH, ensuring a vast array of potential investment opportunities.
When purchasing an NFT on the Crypto.com marketplace, there is no transaction fee, making it one of the cheapest places to invest in these assets. In addition, Crypto.com also allows users to buy NFTs using a credit or debit card – removing the need to hold crypto beforehand.
Users can choose between numerous NFT categories, such as art, gaming, music, sport, and celebrities. Crypto.com also has a dedicated ‘Drops’ page so that you can keep tabs on hotly-anticipated collections. Finally, Crypto.com is also in the process of integrating the NFT marketplace into the Crypto.com mobile app – offering an easy way to invest in NFTs on the go.
Your capital is at risk.
How to Make Money with NFTs – Conclusion
To summarize, this guide has discussed everything you need to know about how to make money with NFTs, highlighting ten of the most profitable approaches you can take in the market. With the NFT craze showing no signs of dying down, there’s tremendous returns potential for investors – providing a viable alternative to traditional asset classes.
If you’re looking for the best NFT to make money, we recommend checking out Lucky Block. This is a new NFT-based competition platform which gives investors the opportunity to earn up to $50,000 and users can enter weekly and NFT draws by purchasing NFTs that have been minted on the Lucky Block platform.
Lucky Block just released its V2 coin – eliminated the 12% fees of the V1 coin to 0% – and saw a price surge of 400% after listing on centralized exchange MEXC. LBLOCK V2 will next be listed on Gate.io, the fifth-largest exchange on the market, with prices expected to shoot up once more.
Another two projects that have excellent potential for growth include Tamadoge and Battle Infinity. After selling out their respective presales and going on to increase in value by hundreds of percentage points, both NFT-based projects have cemented themselves as two of the year’s most exciting cryptos.
Tamadoge - The Play to Earn Dogecoin
- '10x - 50x Potential' - CNBC Report
- Deflationary, Low Supply - 2 Billion
- Listed on OKX, Bitmart, LBank, MEXC, Uniswap
- Move to Earn, Metaverse Integration on Roadmap
- NFT Doge Pets - Potential for Mass Adoption
Battle Infinity - New Metaverse Game
- Listed on PancakeSwap and LBank - battleinfinity.io
- Fantasy Sports Themed Games
- Play to Earn Utility - IBAT Rewards Token
- Powered By Unreal Engine
- Solid Proof Audited, CoinSniper Verified
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This article was written for Business 2 Community by Connor Brooke.
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