NFTs has been trending on and off for over a year now.
If you have been meaning to learn more about it, you have come to the right place
Cryptocurrency related concepts can be confusing sometimes.
But in this guide, I am going to break down the significance and psychology behind NFTs.
Also, there are numerous directions this guide can go, but my desire is to answer one burning question.
How can the everyday person make money with NFTs?
Every other thing can be figured out along the way.
It doesn’t matter if you are a creative, an artist or just a business person, no matter what you do, there is a place for you in the NFT space.
The key is learning how to position yourself.
After learning about NFTs in August 2021, I did some research and positioned myself well in the space.
I would talk more about positioning in the latter part of this guide.
Positioning yourself in the NFT space is the greatest single thing that you can do for yourself.
It enabled me to gain access to free community drops without having to make an investment.
I was able to claim
1) A Nifty Island Palm currently worth $10,300.
2) A Nifty Island legendary Blade currently worth $13,900
And other similar NFTs. I have been able to do over $30,000 in NFTs over the past six months without having to break the bank to buy one.
The only thing it cost me to gain these NFTs were the transaction fees I paid to mint them (less than $60)
I chose to highlight this because there are some people that believe that the only way to make money. with NFTs is by spending hundreds or thousands of dollars to buy one.
Now before I answer the question of how everyday people can make money from NFTs, let me first explain the psychology behind NFTs.
Understanding this psychology is what would enable you to spot and jump on the numerous opportunities in the space.
Table of Contents
What is an NFT?
The simplest definition of NFTs that I have seen is from the Naval. In the words of Naval:
An NFT is a unique, on-chain token representing ownership of an off-chain asset.
The token is backed by a social contract from its creator and a surrounding community.
Onchain tokens mean that NFTs are stored on the Blockchain.
Social contract means that the value of an NFT is gotten from what the creator is building.
We have seen the rise of blockchain-powered cryptocurrencies like Bitcoin and Ethereum.
NFTs are an extension of the move.
One of the advantages of the Blockchain is tokenization.
Tokenization allows the value of a digital and physical asset to be represented by a token that is stored and traded on the Blockchain.
The same way companies issue shares to people who are interested in owning a piece of it.
Can anyone create an NFT?
The answer is Yes.
Can anyone just create NFTs put a huge price tag on them and sell?
The answer is No.
NFTs doesn’t just exist in a vacuum.
My Legendary Palm NFT is worth $10,300 because the company that issued it is building a play to earn game that is positioned to do well.
The same for any other NFTs that you see out there that is valuable.
People buy those NFTs because they believe the person or brand releasing them would build something that would give the NFTs value in the long run.
Why NFTs Matters
The next question that you may have is why does NFTs matter?
Over the past few years, we have seen tech allow us to do everyday things in a better way.
One of the major values of NFTs is that they allow artists to unlock a value not accessible to them previously.
Traditional art is hard to sell.
There is a lot of talented artists out there creating amazing works that might never get visibility.
NFTs give them a chance to create and profit from art that can easily move across borders, greatly increasing the access that artists have to art appreciators all over the world.
Blockchain smart contracts also mean that artists can keep earning royalties from their work for years to come without having to fight for it.
On the Blockchain, royalties are paid immediately to an artists wallet immediately after a trade is done.
Another issue for art solved by NFTs is the authentication of art.
The Blockchain makes it very easy for art to be authenticated as everything about the Art can be read on a public ledger.
Away from art, NFTs has other interesting applications.
You may be asking, what is the difference between NFTs and cryptocurrencies like Bitcoin.
Understanding this would shed more light for you on why NFT matters.
The total supply of Bitcoin is 21 Million.
Every single one of those Bitcoin is the same and mutually Interchangeable (fungible) but that is not the case for NFTs.
NFTs are not mutually Interchangeable, even those that come in the same collection.
If the price of Bitcoin is $50,000.
Every single Bitcoin in the market can be bought at that amount, but NFTs are 1 of 1 meaning every single one has an independent value based on things like rarity and what’s backing it.
NFTs are programmed to be digitally scarce, and the creator doesn’t have to die for them to see significant growth in value as we see with traditional art.
With time more creative use cases for NFTs have been created.
Access pass for online courses: Crypto Colledge
Play to Earn Games: Axie Infinity
Community Reward System: Zora
Proof of Attendance for Events: POAP
Online Voting: Dappcon
Think of anything that has to do with giving access, verifying the validation of something, creating a reward system etc, NFTs offer a solid system for it
How To Mint An NFT
Minting an NFT is not as hard as most people think it is.
Platforms like OpenSea and Rarible has made it quite easy to mint NFTs.
Like I said earlier the main thing is what backs the NFT.
Or if you know how to code or design products, you can join or build a project that leverages interesting NFT solutions.
Everything that drives value for an NFT comes from what has been built or is being built in the real world.
Anyone can upload a picture on OpenSea and mint and NFT from it.
But it does not automatically mean that there would be a demand for it.
Now to the minting part:
- Wallet Connection: You need a Decentralized wallet to interact with NFT platforms like OpenSea. From my experience, the overall best option is Metamask.Wallet security is very important as there is no recovery or reversal with Decentralized wallets. You are 100% in charge of your wallet and Metamask can’t help you if you lose your seed phrase.One thing that you also need to understand is that you should never send your keys or seed Phrase to anyone for any reason.A lot of people has lost money to scammers posing as customer care agents for Metamask and other platforms where Metmask is used to run transactions. Also never click on links sent by anyone to you for the purpose of verifying or authenticating anything.
Many people ignore this part and end up losing their funds to scammers. You need to be vigilant. Verify, don’t trust.
- Create Your Item: After setting up your wallet, connect it to OpenSea.To create your item, click on the create section in the top right corner on OpenSea. You should be able to see similar buttons on other NFT Marketplaces that allows you to mint an NFT.You will see a page that prompts you to upload the art that you are trying to mint. OpenSea allows you to mint an Image, Video, Audio, or 3D Model.The art type and name of the NFT are required for submission. There are other optional submissions like a full description of your work, external links that give more insight on who you are and the nature of your work.
You can also set things like Royalties (mostly 3% to 10%) so that you can get a cut of proceeds whenever the NFT is resold in the future.
After you add all necessary details click on “Complete,” to mint.
There are other finer details that have to do with listing and selling the NFT. This Guide by OpenSea gives a deep dive into all the finer details.
How To Find Success As A Beginner
There are two categories of beginners in the NFT space.
Those who have the required funds needed to trade NFTs and those who don’t.
If you have the funds to trade NFTs, this thread by Samuel Thompson gives a deep dive into what it takes to find success with NFT Investing.
One thing that you have to understand is that NFTs are an asset and like every asset, the rules of demand and supply still apply.
If you don’t want to get into trading, there are still different ways to participate in the space, but the most valuable thing that you can do for yourself is to come in with a builders mindset.
NFTs are a part of the larger Web3 space and currently, there are a lot of opportunities for skilled individuals.
Most of the job openings are remote, meaning that you can work with any company from anywhere in the world.
I have students living in Lagos, Enugu, Uyo who are working with global Web3 brands and earn in Dollars.
However, there is one important thing that you need to understand, getting grounded in the space requires an investment in learning.
You need to devote time to understand how the space works fully.
I spent 2 months and 100’s of hours of reading, watching,listening before I bought my first NFT – Gary Vee
VeeFriends NFTs by GaryVee currently has a sales volume of 40,482 Ethereum( $122,296,122) because he took time to understand how the space truly works.
It is also very important that you join the right communities. Joining NiftyIsland and Chill Frogs communities last year has enabled me to net some of the most valuable NFTs out there.
If you need a community that helps you:
– Get Up to Speed about the NFT Community in general.
-Learn what it takes to position yourself for high-quality community drops.
– Learn the required skills that help you find success in the NFT and Web3 Space (3D art Creation, Product. design and development, community building etc)
Then the Day One Community is for you. I created it last year as an Offshoot of my NFT Money and Online Writing guides.
Members of my community have gone on to mint and sell their own NFTs, create 3D art for NFT projects and get paid, land community management, design and development jobs with Web3 brands.
You can get either the NFT Money or Online Writing Guide if you would love to be a part of the community.
You can go through their respective pages, read reviews and get either the NFT Money Or Online Writing Guide if they are a great fit for you.
Buying any of them can give you access to the Day One Community. (The First 10 people to use the Coupon “DAYONE” would get a 10% discount)
Interesting Upcoming Projects
One of a Kind Decentralized NFT marketplace: Wakanda INU
A Prime Example of NFT Gaming: Polyworld NFT
An NFT powered Music Streaming Platform: GrooveUp
There are a lot of possibilities in the NFT space, and I would be writing more on it in the coming weeks and months.
I write on the different ways anyone can leverage the Internet and the Blockchain to create value for themselves.
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