How To Get Started In NFT’s And Turn A Profit

Many people have been wondering how to get started in NFTs (or Non-Fungible Token) to turn a profit ever since this new asset has been seen exploding onto the market.

If you are not familiar with what an NFT is.. you can learn all about it in the post "What The NFT!? We Have Been Hearing About Them More And More…But What Are They?"

NFTs For The Artist And Content Creators

Instead of having to rely on an art gallery or auction house, an artist can sell their work directly to the consumer as an NFT. This also lets them keep more of the profits.

Artists can also program in royalties so they will receive a percentage of the sale when that art is sold to a new owner.

This is a very attractive feature to an artist, as they usually don’t get any future proceeds after the art is first sold.

Artists Are NOT The ONLY Ones To Profit With NFTs...

It is not widely know but artists aren't the only ones to make money with NFTs.

Brands like Taco Bell and Charmin have auctioned off themed NFT art for charity. Taco Bell’s art sold out in minutes, with the highest bids topping $3 million worth of cryptocoins.

Charmin dubbed its offering “NFTP” for non-fungible toilet paper.
A 2011-era GIF of a cat with a pop-tart body, called Nyan Cat, sold for nearly $600,000 in February.

Sports is a big seller also. NBA Top Shot generated more than $500 million in sales as of March, while a single LeBron James highlight NFT brought in more than $200,000 on its own.

Even celebrities are jumping on the bandwagon. Snoop Dogg and Lindsay Lohan have released unique memories, artwork, and moments as securitized NFTs.

Since everyone is getting in on the game... It seems that the blockchain, NFTS, and a system of record for ownership would seem to solve all the problems of selling digitalized art and content, right?

What Is The Dark Side Of An NFT?

So, right out of the box, here’s part of the problem you might not have thought about—and its one entrepreneurs need to solve. The markets for physical things are (for the most part) standardized and regulated.

The markets for physical collectibles like paintings aren’t as regulated, but are 'somewhat' standardized.

Markets and auction houses (like Sotheby's and Christie's) have been selling physical products for many years and sell items based on some standard—scarcity, mint condition verses poor, proof of ownership are all considered.

Now think about NFTs. The markets for virtual assets are individually controlled by the smart contract that created that NFT.

With an NFT you are buying 'speculation' and you’re also relying on the integrity of the market maker that has not been around nearly as long as the before mentioned auction houses.

That’s a real problem. There will be scams and lawsuits; there will be chaos around these new markets as they struggle to exist without any connection to a universal marketplace.

Right now, the value rules for digital assets like NFTs are being made up on the spot. 

The majority of investors believe eventually there will be an index like the S&P, Dow or Nasdaq created then the standards of what a digital asset is will become more defined.

Knowing the dark side...should you invest? And how do you purchase NFTs?

How To Purchase NFTs

To acquire your own NFT collection, you’ll need a few key items.

First is a digital wallet that will allow you to store cryptocurrency and NFTs.

You’ll also probably need some actual cryptocurrency like Ether, depending on which currencies your NFT provider will accept.

You can purchase cryptocurrency with your credit card on platforms like Kraken, Coinbase, eToro, PayPal, and Robinhood. Then you can move it from the exchange to your digital wallet.

You’ll need to keep fees in mind though, as you research your crypto options. Most exchanges charge at least a percentage of the transaction when you purchase currencies.

Once you’ve got your wallet set up and funded with crypto, you can start shopping for NFTs.

Here are some of the largest NFT marketplaces currently:

OpenSea.io – this is a peer-to-peer platform that bills itself as a purveyor of “rare digital items and collectibles.” Get started by creating an account, then start browsing their collections. You can sort pieces by sales volume to “discover” new and up-and-coming artists.

Rarible – this is another democratic, open marketplace like OpenSea. It allows artists and creators to issue and sell NFTs. RARI tokens issued on the platform let holders weigh in on features like community rules and fees.

Foundation – this is an invitation-only platform. Artists must receive “upvotes” or an invitation from fellow creators in order to post their work. They also have to buy “gas” to create those NFTs.

These features mean the site may boast a higher caliber of artwork. Of course, it may also mean higher prices for the buyer, which isn’t necessarily a bad thing for artists and collectors looking to capitalize (assuming the demand for NFTs stays at current levels or even increases in the future).

Be sure to do your research before you buy. These platforms and others host thousands of NFT creators and collectors and some artists have fallen victim to impersonators who listed and sold their work without permission.

Also, the verification process for creators and NFT listings aren’t consistent across the various platforms. Some platforms are more stringent than others, so always be cautious.

Investing in NFTs is largely a personal decision—if you have money to spare, it might be worth thinking about, especially if you find a piece that has meaning to you.

But keep in mind, the value of an NFT is based entirely on what the public is willing to pay for it.

How to Get Started with NFTs

Tyler Gallaghher, CEO and founder of Regal Assets and writer for Forbes, produced his list of ten business ideas for entrepreneurs to start working on now.

The good news is, you don’t have to be a digital artist to succeed as an NFT entrepreneur.

There are lots of applications for NFTs besides art, across a variety of industries.

“As a nascent industry,” says Gallagher, “the sky is truly the limit when it comes to potentially money-making ideas with NFTs.”

Here a few of those ideas:

Unlike other industries, says Gallagher, The NFT business is totally new. It’s going to take years of development before it fully matures.

The same is true of whatever business venture you launch into NFTs.

If at first you don’t succeed, don’t sweat it. At this stage, there’s plenty of room for error.

If an NFT can bring in over $11 million at auction, there’s really no reason why a “bold and adventurous entrepreneur” can’t build on that momentum.

Consider the many ways you can make money with NFTs, such as the ideas we’ve discussed in this article, and then decide on a plan of action.

Remember, it’s the wild west right now when it comes to startup projects and monetization methods in the NFT space. You’re getting in at a great time so seize the moment!

If you like the idea of getting into NFTs, Cryto and Defi but you want to learn more before riding into that wild west then we suggest taking our coaching course available here.