How to Earn Money with NFTs as a Beginner in 2023-The Ultimate Guide

While traditional ownership is associated with tangible assets like real estate and vehicles, the rise of the internet and digital economy has ushered in a new era. The concept of ownership has transcended physical boundaries. 

This paradigm shift recognizes the significance of owning digital assets and encompasses the rights to utilise, transfer, sell, or modify them within the boundaries of existing rules and regulations. Hence the rise of Non-Fungible Tokens (NFTs).

NFTs allow you to own and control digital assets without relying on banks or government agencies. It means more freedom and opportunities to create value, trade, and make money digitally.

Whether you’re interested in making money with NFTs in 2023 or owning some as an art collector, this guide will equip you with the understanding and assurance to navigate the realm of NFTs with confidence and expertise.

What are NFTs?

NFTs, short for non-fungible tokens, are unique digital coins you cannot exchange with others because they are one-of-a-kind. Each NFT’s unique digital signature distinguishes it from all the others, which means no two NFTs are the same. 

NFTs link to something real or digital with distinct ownership. And like Cryptocurrencies, they are built on blockchain technology, a public record of all assets and who owns them. Nobody can change or tamper with this record, making NFTs genuine, secure and reliable, and nobody can claim to have it.  

The feature that makes NFTs collectibles is their originality. Each NFT has a unique signature that represents ownership of a specific asset. It’s the same reason, like collecting art pieces, that people enjoy owning NFTs. Even so, some can be very valuable, while others may not. 

How NFTs Work

Blockchain technology is new, but its potential to revolutionise various industries has made it famous. NFTs, like cryptos, are a product of this technology.

Blockchain powers two types of digital assets – interchangeable and non-interchangeable. The interchangeable or fungible assets are traded for another without losing value, allowing one to stand in for another. These are the cryptocurrencies like Bitcoin, Ethereum, Litecoin, Dogecoin and much more. They share the fungibility quality with regular fiat currencies. For example, just like your 2 BTC has the same value as another person’s 2 BTC, is how your 100 euros have the same value as the 100 euros another person has. But for non-fungible tokens, that’s not the case.

Non-fungible tokens are non-interchangeable as distinct intrinsic value and cannot easily stand in for another. That’s the case we encounter with real estate, and you can’t outrightly say this property has the same value as another. And the same goes for artwork. 

But still, we can sell real estate. And the same goes for NFTs. Through blockchain smart contract technology, you can transfer and trade ownership of NFTs. 

Since the data remains transparent and immutable in interconnected blocks forming a chain of records, it is helpful in many cases. 

Uses of NFTs

NFTs have the power to change industries like gaming, sports, and music in really cool ways. In video games, NFTs can create exceptional items that players can buy and own. 

In sports, NFTs can show you your own special moment or even a whole team.

Since you can also use NFTs to buy and sell digital things like artwork, music, and videos, artists such as musicians can use NFTs to sell ownership of their songs or albums, which is an excellent way for fans to support them. These tokens work like special certificates that prove ownership of something unique in the digital world. It’s a fun and interactive way to join these industries!

As you’ve seen, you can use NFTs to trade digital tokens connected to digital files. When you own an NFT, you have permission to use that linked digital file, but it doesn’t mean you own the copyright. 

The licences can vary – some NFTs only allow personal, non-commercial use of the digital file, while others let you use it commercially. This decentralised approach to copyright offers an alternative to the traditional way of protecting copyright, which government institutions and intermediaries usually control in specific industries.

As a Beginner, How Do You Make Money from NFTs?

In 2014, Kevin McCoy (an artist )and Anil Dash (an entrepreneur) created a unique animation called “Quantum” that was the first artwork to have ownership based on smart contracts, and seven years later, they sold it at an auction by Sotheby’s, a famous auction house. It set the stage for how these tokens can be used to make money, just like traditional valuables such as houses, gold, or physical artwork.

So, as a beginner who wants to make money with NFTs, just like Kevin McCoy and Anil Dash did with their animation “Quantum,” here’s how you can get started:

1- Find something unique

Think about what you can create that’s special and unique. It could be artwork, music, videos, or a digital collectible. The key is to make something that stands out and has value to others.

2- Create your NFT

Once you have your unique creation, you can turn it into an NFT and connect it to a particular digital token proving ownership. There are online platforms called NFT marketplaces where you can create and sell your NFTs. Remember to visit TradingGuide.co.uk for more resources and expert insights to enhance your understanding on creating NFTs and maximise your potential for financial gains.

Artificial intelligence (AI) is also connected to NFTs because there are AI-powered tools that can help create NFTs. These tools use advanced technology to generate unique and special digital items. So, in the metaverse, a digital world where people can be avatars and interact with their surroundings, NFTs and AI work together to make things exciting and interesting.

3- Showcase and promote

Show off your NFT and let people know it’s available for purchase. Use social media, websites, or even attend virtual events to get the word out. Building a following and engaging with potential buyers, like it’s a norm in marketing, will help enhance your chances of selling your NFT.

4- Set a price and sell: 

How much will you sell it for? You can set a fixed price or even try auctioning it off, just like “Quantum” was sold at Sotheby’s. When someone buys your NFT, they will own that particular digital item, and you’ll receive payment in return.

5- Keep learning and creating: 

As you gain more experience, continue learning about NFTs and exploring different ways to create and sell them. Pay attention to trends, market demands, and what people are interested in. The more you learn and design, the better you’ll become at making money with NFTs.

Remember, just like any business or investment, making money with NFTs takes time, effort, and some trial and error. But with determination, creativity, and a bit of luck, you can create something valuable and have the opportunity to sell it for a reasonable price, just like the pioneers of NFTs did with “Quantum.”

Final Thoughts

NFTs offer exciting opportunities to make money in the digital world, especially in the metaverse. They enable ownership of virtual assets like property, creating a new digital economy. 

Unlike traditional ownership, NFTs use blockchain technology to establish unique ownership of digital creations. Beginners can enter the NFT market by creating something special, like artwork or virtual property, and minting it as an NFT on online platforms. By listing their NFTs for sale, people can buy and own these unique digital items, providing a chance to make money. 

Creating and selling NFTs is a fun and rewarding experience in the evolving world of digital ownership.