Web3 has been a large talking point for the last few years. Beyond things like de-centralized banking, Blockchain allows for new sources of the free market. And one of those results that have been widely discussed lately is NFTs.
How You Can Earn Money With NFTs
So what exactly is an NFT? Why should you care about it? And how can you use it to monetize and earn you potential income in the future?
What Is an NFT?
NFT, short for non-fungible token, is in basic terms, a unique, one-of-a-kind unit of data. Unlike other forms of data stored on Blockchain, they are non-interchangeable. This means they are also resistant to reproduction. Often when people ask what NFTs are, they’re thinking of pieces of art they saw on social media that’s tagged as an NFT. Current iterations of these assets are things like digital media, such as photos, videos, and even audio. An owner of an NFT possesses a digital ledger granted to provide a public certificate of authenticity.
What are Some Major Examples of NFTs Today?
Understanding how to use NFTs today will help you to understand how they may play a role in your finances and business decisions down the road. Some major examples of them in use today are:
- A unique piece of digital artwork. Much like a unique piece of art from your favorite painter, NFTs are in use for digital artwork. Each unique digital image has its own ID, which the owner possesses.
- A ticket that gives you access to an event. Not all NFTs are currently in use as splashy art purchases. Because NFTs are unique in their ownership, they’re perfect assets for things like sporting events. Your ticket is unique to you, and copying or stealing is impossible in this way.
- A domain name. Much like owning a domain on a site like GoDaddy, NFTs will allow ownership of a digital domain. This also allows ownership in a decentralized market, so no need for sites like GoDaddy.
The Future of NFTs: How Will It Grow
NFTs are de-centralized and provide ownership to the certificate holder. Because of this, it’s likely that we’ll see NFTs used down the line for many business transactions that require a middle man. Things like deeds, titles, records, movies, and more will move to digital ownership. And because they’re are decentralized on Blockchain, this will provide the owner a more secure method of ownership.
How You Can Profit
So the big question is, how can NFTs help you in your future finances? There are already a few ways you can earn passive income now:
- Rent Out NFTs: Some allow rental transactions, such as cards in a digital card trading game. A contract is used to set rental periods and the agreed-upon rate for leasing. Depending on the demand for a specific digital item, this could be a highly profitable passive income for the owner.
- Stake NFTs: Similar to stocks, they can grow in value over time and generate a yield. If you’re savvy in the market and can identify tokens that will grow in value, you can earn exponential income trading in these deals.
- Selling Digital Art/Collectibles/Etc: If you are imaginative you can make potential income on selling digital pieces. This includes art, collectibles, and media. Evaluate the landscape of what art is popular and selling well, and create your own media for selling.
The Future of Digital Assets
With NFTs, we are looking at a new scope of digital asset ownership that is potentially safer, more secure, and more accessible as a market. We’ve answered the question of what these exciting assets are, now it’s your chance to target the market and prosper from it!
If you’re new to the digital asset market but want to learn more, check these informational books that will make you an expert in no time!
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