Maybe you have heard of it: NFT. The new way of investing online in the crypto market. Some people become multimillionaires with it, while others are left with nothing. But what exactly are NFTs, and more importantly, how can you make money with them?
In this article, we will give you all the information you need to understand the basics of NFT, and you will learn more about the different ways you can make money with NFTs. Want to know more about investing and making money with online resources? Then read also the other articles on our blog.
What are NFTs?
NFT stands for Non-Fungible Token. The best translation is 'Non-Replaceable Token'. As the name suggests, it is digital evidence that is unique and not replaceable. The entire system was invented in 2015 and is based on Ethereum's blockchain technology. This makes it secure but above all flexible to use. In principle, you can link NFTs to anything. An NFT is the proof of ownership of a (digital) work of art, a piece of music or even a meme. Read more about the options for investing in NFTs.
The largest difference from cryptocurrency Like Bitcoin, NFTs are unique to each piece. One bitcoin has the same value as another bitcoin, but an NFT of one piece of music may be worth more than that of another piece of music, depending on the popularity of the object to which the NFT is attached.
These are the ways you can make money from NFT
As is now clear, an NFT is nothing more than proof of ownership of an object. It is fixed in the blockchain and cannot be faked. There are a few different ways to make money with NFTs, buy NFTs and trade them. To give you a good idea, we have divided this into 3 categories:
- Trading of NFT
- A passive income from investing in NFT
- Making NFT
Trading of NFT
This is the way that seems easiest to most crypto fans. You go looking for interesting NFT pieces, which in most cases are pieces of art, and buy them in the hope that they will become worth more. This seems like a logical step, especially when you consider that in the first quarter of 2021 alone, $2 billion worth of NFT were sold. But this growing market comes with many dangers.
Because unlike crypto currencies, the value of an NFT is very different. The work of art that you buy for 100 euros has no guarantee that it will remain worth 100 euros. You can be stuck with your NFT for years and the best offer you ever get can be 10 cents. With bitcoin, for example, the value depends on all bitcoin, which in a way gives you more 'security' that the value remains constant.
NFTs can be bought on platforms such as Etoro (which cooperates with digital marketplaces such as Enjin and Maker), but also through specialised platforms such as Opensea.io.
A passive income from investing in NFT
What if there was a way to buy NFT, and make money every month with it? What if I told you that this already exists, and is based on not only blockchain, but actual collateral? At Immotokens.be we offer NFT with which you can invest in Belgian real estate. We maintain and rent this out, and pay you a portion of the rental income each month.
We believe that NFT is an awfully good technology for jointly owning real estate. It has been proven for generations to deliver high and reliable returns on property investments. The biggest problem, however, is that it has a very high entry threshold. After all, anyone who wants to start investing in property nowadays must have a minimum of EUR 200,000 + the maintenance of the property. It is a way for the rich to get richer, and the ordinary investor has no way of getting involved. This is mainly because it is impossible to several people to buy and run a house together.
And this is where Immotokens can perfectly use the NFT blockchain technology. Through NFTs we record in which specific house you take a share, the value of this share and make sure that this share is actually yours. This makes it fraud-proof and you are guaranteed your investment. We then pay you a portion of the rental income every month, depending on the size of your share. Someone who has 50% of a house in Immotokens will of course get paid double than someone who has 25% of the same house.
Making your own NFT
Besides buying NFT, there is of course the option to make them yourself. Are you a (semi) famous musician, painter or artist? Then you can sell the rights of your work through NFT. Of course, this is only possible for artists who are already reasonably well known, because the value of unknown works is of course rather low. This is without a doubt the least advisable way to make money with NFT, but if you are exactly the one artist for whom this is possible, then you should definitely take the plunge!
