Methods of Profiting from NFT (6 Different Methods Explained 2022)

Ways to profit from the Internet are increasing year after year, and the latest of these methods is currently profit from NFT. non-fungible tokens became one of the most important digital products being sold and profitable at the beginning of this year.

NFT units are one of the most important forms of the digital economy after digital currencies, but the latter requires great technical knowledge to profit from them,

The interest that NFT has gained as a dazzling digital technology has drawn the attention of many people to look for ways to profit from it. In this article, we will explain simply the 6 most important ways in which you can profit from or get NFT.

Profit from NFT

The ways to earn from NFT vary greatly; Some of them require economic experience and thinking like the thinking of great entrepreneurs, on the other hand, there are easy ways that do not contain major technical complications but are entertaining ways like playing games to earn NFT units.

It is always preferable to read carefully about any method of profit on the Internet, especially if it is relatively new, as is the case with profit from NFT. With a little focused reading in the field of NFT and a modest computer, you can invest and profit from NFT easily.

Most of the NFT units are original works of art such as photos, videos, etc., which makes it easy to sell and profit from, but selling is not the only way to profit from NFT units, and this is what we will explain to you in the next section of the article.

In a previous article, we provided you with all the information you need to know about NFT. We recommend that you review it to understand the ways to profit more clearly.

the ways to profit from NFT

1. Profit from the transfer of ownership of your NFT unit

Can you imagine making continuous profits from a product you have already sold? This is the case with the NFT. The technology by which you created an NFT unit allows you to specify clauses in its trading agreement that allow its maker to receive a profit every time its unit is sold.

In other words, the NFT unit maker will receive a percentage of the unit's value each time it is sold to a new customer.

For example, the code maker can set the share of the profit of the sale of the code to be 10%, which means that every time it will be sold or transferred from one buyer to another, the owner of the code will receive an estimated 10% of the amount paid.

The profit from the transfer of ownership of an NFT unit is called NFT royalties, and the percentage of profit is usually between 5-10%. This process is done automatically on the markets for buying and selling NFT units and does not require much intervention from the unit maker itself.

How to establish and determine the percentage of profit from the transfer of ownership of an NFT unit

NFTs unit makers choose the percentage of profit from the transfer of ownership manually during its creation. This is done while converting the content (image or video) into a digital form using Blockchain technology. The unit maker places the percentage value in a smart contract, or what is known as a smart contract.

Smart contracts are the programming recorded inside the blockchain, which, once written, automatically converts the profit percentage from the NFT.

Note: As it is clear, the profit from the transfer of ownership of the NFT unit is made after it is sold on one of the platforms specialized in selling these units, we will mention the platforms through which NFT units can be sold, and explain them in detail later in the article.

2. Mortgage your NFT unit

The decentralized financing protocols that NFTs rely on allow their makers and owners to get a return on them without selling them,

An NFT staking is called an NFT staking, and the word staking here is for simplicity. The mortgaged NFT unit is held by a private platform, and can only be used or sold after the term of the mortgage has expired.

Mortgaging the NFT is done using decentralized financing protocols specific to blockchain technology.

Platforms that provide a return by mortgaging NFT units sometimes give their owners points that contribute to the investment decisions of these units, a situation similar to buying shares and its relationship to corporate management.

The most important platforms through which NFT units can be mortgaged

a) LooksRare . platform

LooksRare is a trading platform for NFT units that can also be mortgaged, the platform enables users to trade NFT units no matter where they live in the world.

The definition of the LooksRare platform as written on their site is: LooksRare is the first community marketplace for NFTs that gives rewards for participation… Buy or sell NFTs to earn rewards.

Mortgaging NFT units on LooksRare is very simple, all you have to do is buy an NFT unit on LooksRare, after purchase keep the unit, and don't sell it which will generate rewards for you.

These bonuses are collected based on the collection of trading fees generated on the platform and are called $LOOKS. The bonuses are collected based on the trading volume made on the platform during the day and are paid to NFT unit holders daily.

b) Binance platform

Binance is known as one of the most popular cryptocurrency exchanges, but it offers advantages in the field of NFT as well, as the platform enables you to trade NFT units in addition to trading cryptocurrencies.

Recently, Binance added the ability to pledge and store NFT units on it by staking fan coins. Most Fan Tokens are NFTs related to the field of famous sports teams from a wide variety of sports.

More specifically, Fan Coins serve as a bridge of communication between fans and their favorite team or sports brands, where fans can win tickets to certain events or sports products.

Fan Tokens currently available on the Binance platform are:

$ PORTO (Fc Porto Football Club in Portugal).

$ALPINE (Formula One Racing Team).

$ LAZIO (Lazio Football Club from Italy).

$SANTOS (Football club from São Paulo).