NFTs are the future of trading, collecting, and investing in the world. But can NFTs make you rich? There is much gossip and headlines regarding this topic. So, let’s have a look.
NFTs can make you rich in several ways. You can become rich by creating your own NFTs, buying and flipping existing NFTs, investing in NFTs for long-term profit (building wealth), or by creating your own business and incorporating NFTs into your brand.
The following discussion is worth the time of anyone who is thinking about making some money from NFTs. Hopefully, you will be able to strike a balance between your expectations and reality, after reading it.
Can NFTs Make You Rich?
Simply put, yes. There are many recent examples of NFTs making people ridiculously rich. If you are thinking about selling, buying, or even creating your own NFTs, these examples can surely motivate you.
One of the most famous NFTs is the Nyan Cat gif. The creator of the gif had put up his work on the internet almost a decade ago. Since then, the gif has amassed a lot of attention on the web.
However, only recently, during the increasing popularity of blockchain technology and NFTs, the artist made an NFT out of it and sold the ownership of Nyan Cat. And the creator made around six hundred thousand dollars in cryptocurrency.
Keep in mind, that there are numerous reasons why this Nyan Cat gif with no real use or value sold for such an insane price. Part of it is due to how early the creator was to the NFT space, as well as the popularity of the gif across the internet.
Another important example of NFT sales is from Jack Dorsey and Elon Musk. Both of them sold their tweets as NFTs.
Among them, Jack Dorsey, who himself is the former CEO of Twitter, sold his first-ever tweet. He made around two point five million from that sale.
From these facts, you might have gathered two things. First of all, an NFT can sell for a ridiculous sum of money. Ridiculous, because the initial cost of creating these NFTs was essentially nothing.
However, you can also see that the sellers are usually high-profile famous people. And that’s what sold their NFTs at such prices.
But that doesn’t mean only celebrities can become even more wealthy selling NFTs. There are many recent examples of lesser-known individuals selling their NFTs at significant prices and making quite a living from them.
Such examples include Beeple and Sarah Zucker.
In the first-ever public auction of NFTs, Christie’s sold Beeple’s art piece Everydays – The First 5,000 Days, for an astonishing $69 million. The piece was a large JPEG file that had 5,000 unique creations made by the Beeple over 13 years.
Keep in mind, Beeple was relatively unknown before he entered the NFT scene and made a splash.
The same is the case with Sarah Zucker. This digital artist started to sell NFT art back in 2019. The idea of NFTs hadn’t yet caught on during that time. However, as she kept her persistence, she began to make significant money in the following years as the idea became popular. So far she has made nearly $300,000.
All the above examples are good for drawing motivation. You cannot expect to make an NFT today and then sell it for a million dollars tomorrow.
Creating and selling your own NFT is the equivalent of starting and building a brand or business. You can create the best product or service in the world, but, if no one knows it exists, then no one will ever buy it.
Before trying to make money with NFTs, consider reviewing these 18 Do’s and Dont’s When Making Money With NFTs.
Are NFTs a good investment?
NFTs are a fairly new concept. So, we can’t comprehend all its advantages and possibilities in their entirety. But some of the benefits of making money with NFTs have already become evident. Let’s consider those for a moment.
Certain NFTs may be a good investment, especially if you invest in a person who you truly believe will be able to execute on what they are planning to build. However, a majority of NFTs are bad investments, specifically if you’re investing long-term.
The way we view NFTs today will not be the same in 5 to 10 years when NFTs are used in every industry, and to achieve different results. However, the way that humans decide if something is of value and whether or not they are willing to put money into something doesn’t change much over time.
Our traditional market is mainly based on physical assets. These assets require elaborate processes when changing ownership. But when digital assets like NFTs work with them, it optimizes the many liabilities and problems associated with changing ownership. As a result, the market becomes smoother and more streamlined.
The second great thing about dealing with NFTs is cutting out the middleman. The creator can gain undivided power and control over their assets. So, no one can exploit the artist or creators anymore. This helps to eliminate money-grabbing agents and annoying, elaborate transactions.
NFTs can become a means of dividing ownership of a physical asset. And this can be an effective solution to settle disputes between multiple owners who have claims on the same asset.
For example, it might be difficult to distribute a single apartment or piece of land among multiple owners. But if you make an NFT of that apartment and land, you can easily divide and distribute the parts among the owners resulting in more transparency of ownership.
Lastly, the greatest advantage of getting rich from NFTs is safety. The blockchain technology that NFTs are built upon is extremely difficult to hack. No one can change or delete the digital ledger on which the information of your ownership of an NFT is saved. Therefore, there is no chance of theft when your asset is an NFT.
Things to consider before building wealth with NFTs
Before you try to become rich through NFTs and their associated technology, there are some things you should consider first.
What are your goals? How much money do you need before you consider yourself rich and how long are you giving yourself to achieve this goal? Are there other things you can do before trying to become rich to achieve that same level of happiness that you think becoming rich will unlock?
I’m talking about very basic things like paying off your debts and reducing your spending. I know maybe you don’t want to hear this, but it’s something you should consider before trying to become rich using NFTs.
You see, someone who makes $300,000 a year may live the same kind of life as someone who makes $30,000 per year, simply because they have terrible spending habits.
Or, the opposite. Someone who makes $30,000 per year may live more comfortably and with less stress than someone who makes $300,000 per year simply because they don’t have any expenses and don’t waste their money on things they don’t need.
My point is that if you can’t properly handle $30,000, then how do you expect to handle $300,000 or even $3 million? You won’t.
Once you have asked yourself these important and reasonable questions and addressed them accordingly, then you can start to think of a plan to build wealth using NFTs.
When deciding how to make a lot of money using NFTs, you must be completely honest with yourself, and of course with others who may be affected by your decisions.
Is your goal simply to make a large amount of money with NFTs? Or, are you interested in building your own business using NFTs and establishing a thriving and robust career for yourself?
Before becoming rich using NFTs, it’s important to understand that it goes a lot deeper than just the NFT itself.
There are many questions and answers you should address first, and then start working towards your goals daily, understanding that it’s going to take a lot of time and patience to achieve something that many people will likely never achieve in their entire life.
Being realistic about your goals and taking small steps daily to achieve your goals is what will set you apart from someone who wishes they were rich but doesn’t plan and execute to make it happen.
Getting rich is hard. Getting rich with NFTs might be even harder. Especially if you don’t understand the potential of NFTs, their capabilities, and the fact that ultimately the human(s) behind the technology is what gives an NFT value, and not the fact that it’s an “NFT”.
Now that we got that conversation out of the way, let’s talk about the ways you can become rich using NFTs as your vessel.
How to get rich using NFTs
The question we have all been waiting for. How do you get rich with NFTs? Note that I am not a financial advisor and investing in NFTs is extremely risky. Do so at your own risk.
Here are some ways to become rich using NFTs:
1. Buy and sell NFTs (day-trading)
Buying NFTs that have the potential to increase in value is one of the easiest ways to make a lot of money with NFTs. It’s simple. You buy an NFT for $5, then you turn around and sell it for $50.
Although this day-trading method is one of the main ways people are making money with NFTs, it’s also one of the riskiest ways to invest your money into NFTs.
Generally, people who day trade NFTs are only looking to buy NFTs for cheap (usually immediately after they become available for initial purchasing) and then sell them for double, triple, or even more in profit, without any regard for the overall success of the NFT project (brand).
Keep in mind that day-trading is a full-time job. It doesn’t matter if you are trading stocks or NFTS, either way, you need to watch the market practically non-stop. That way, you know the right time to buy and the best time to sell.
If you plan on day-trading NFTs, make sure you have a set amount of money that you use for trading. That way, you don’t spend your entire savings account on something that could easily backfire.
2. Investing in startup brands through NFTs (long-term investing)
Similar to investing in stocks long-term, or even being a venture capitalist (providing capital to startup companies), you can do the same thing with NFTs. Investing in an NFT with a long-term vision can be a lot more difficult than day-trading, however.
If you want to invest in NFTs with a long-term goal of building wealth, then you have to do A LOT more research about the creator and what they are attempting to build. You wouldn’t give a bunch of money to a random person who tells you that they can make you rich, right?
Well, this is what many people are doing in the NFT space. I consider it borderline gambling. Investing in a human without knowing a single thing about them is the quickest way to not only lose your money but also lose your trust and hope in the technology in its entirety.
If you want to help someone raise some capital, and make a profit in return, then you better do your research. Investing long-term in people who are creating something great is my favorite way to invest in NFTs, solely because I love people who are building.
There are some basic things you need to find out. Who is the creator of the NFT? Take a look at the individual’s work history. Were their past projects successes or failures? These things can tell you a lot about how well your NFT investment may perform in the long run.
That being said, I made a guide on Finding Good NFTs to Buy: A Collector’s Buying Guide. This guide highlights some of the most crucial aspects I look for when buying a potentially good NFT. By good, I mean an NFT that will increase in value as time goes on.
Ultimately, investing in an NFT with long-term wealth in mind takes a lot of research, patience, and intuition. Remember, when you invest in an NFT, what you are investing in is the creator(s) behind the NFT.
3. Create your own NFTs
Of course, I saved the best for last. If you are a creator, builder, or someone who is just extremely passionate about a certain topic, you can use NFTs as your platform to build something spectacular, and even make a living doing so.
You see, NFTs are simply a technological platform that allows creators and companies to build and offer. You can turn anything into an NFT. Whether you are a painter, sculptor, fitness coach, or yoga instructor, you can use NFTs to offer your consumers more value, increase trust, and be completely transparent with your offerings.
It’s up to you as the creator to determine how and what you are going to offer though. I believe that creating NFTs is the most difficult way to become rich with NFTs, but it may also be the most rewarding.
If you get to the point where you are making a lot of money selling NFTs, it’s likely because you spent a lot of time, and put in a ton of effort to build a good reputation with your consumers, and other people in your niche.
This means that not only are you doing what you love, but you’re making a living doing it. This is what’s known as the American Dream.
Furthermore, if you are building wealth by creating and selling your own NFTs, then you have chosen this as your career, and with that comes a lifetime full of happiness and of course wealth if you do it correctly.
Hence why I believe this option is the most rewarding, but the most challenging rightfully so.
If you think creating your own business and incorporating NFTs is the right move for you, you may want to check out these 10 NFT Business Ideas You Can Start Today.
Tips to help you become rich using NFTs
Overall, there are some tips and words of advice we can use when making money with NFTs that have stayed true when it comes to building wealth in general. Let’s take a look at some of these tips.
- Consider ways to reduce your current spending before attaining more money
- Pay off any debt you have
- Invest time in educating yourself on personal finance
- Don’t let emotions get in the way of facts
- Focus on investing in people and brands that you are passionate about supporting
- Create things you love to create, not what will make you the most money
- Create a budget
- Don’t spend money you can’t afford to lose, instead, have a set amount of money you are willing to risk in your attempt to turn that money into more money
- Diversify your investments
- Always strive to learn more and stay humble
- Help others who are on a similar journey as you
Although these tips might be considered somewhat broad, I can say that they are extremely helpful tips that will ultimately help you not only build but also maintain your wealth.
If there’s one thing that I hope you learned reading this article, it’s that there are many things to consider before even thinking about becoming rich using NFTs.
Be honest with yourself, with others, and with your personal goals and expectations.
Although there are numerous ways to make a lot of money using NFTs—buying, selling, and creating your own—it all comes with extreme risk and an understanding of the current market at the time of your transactions.
Additionally, the way that people make money today with NFTs will only continue to grow as the technology continues to advance, and with that, so will the many use-cases of NFT technology.