The most common saying amongst the NFT community on Twitter is DYOR (Do Your Own Research), and the following is by no means financial advice. With that said, even though there are several ways you can try to make money from NFTs, nothing is guaranteed. When selling anything, raking in a massive profit is never a given. 

So you’re wondering how to make money from NFTs? The answer will depend on who you are and what your goals are. If you’re a digital artist, photographer, or musician, then the most natural answer would be to create NFTs from your creations and promote them. 

As a creator, you can also monetize your NFTs by taking advantage of one of the best parts of NFT platforms: royalties on secondary sales. Royalties have traditionally been a huge issue in the artist industry, where the creator often would not receive the royalties promised.

Royalties can vary from 5% to 15% depending on the platform. So if your NFT becomes highly valued amongst collectors, it can be resold multiple times, and you can benefit every time it is resold, especially if it is resold for a higher amount each time.

If you’re not a creator and you’re wondering how you can jump in and make money from NFTs, you can: flip collectibles, loan NFTs, or create a fractional NFT.

Flipping collectibles is very risky, and there is no manual or science behind the art of flipping. The best way is to be active in the NFT community on Twitter and get to know the NFT space well before making rash decisions.

All NFT projects will tell you they’re the best, so it’s tempting to buy in, but it’s best to follow legitimate accounts of NFT enthusiasts who’ve been in the space for a while and get some tips from them. However, many will try to sell whatever NFT they buy to their audience to pump the price and then dump the NFT, resulting in you losing money. So yes, flipping collectibles is risky business but can be rewarding!

Loaning Your NFTs – The most popular example of this method is with the popular blockchain game Axie Infinity. In 2021, many holders of Axie NFTs would loan them out to players and get paid back in Axie’s in-game currency $SLP. Several NFT platforms have also launched which allow holders to use their NFTs as collateral for loans. 

Fractionalizing a high-profile, blue-chip NFT worth a lot of money, can be another potentially lucrative approach as it brings liquidity to the market. By splitting the NFT into thousands, millions, or billions of tokens, many people can purchase and own parts of the NFT.

If the approach is successful and there is enough interest, this can raise the value of the NFT to extremely profitable numbers.