Can NFTs make you rich? In simple terms, yes. There are many recent examples of NFTs making people ridiculously rich.
If you’re thinking about selling, buying, or even creating NFTs yourself, these examples can certainly motivate you.
Non-fungible tokens have made headlines because of the incredible prices some of them have earned their owners.
For example, in December 2021, an NFT created by artist Pak titled The Merge sold for a grand total of $91.8 million.
That followed the previous record $69.3 million that Beeple’s “Everydays – The First 5000 Days” sold for in March 2021.
Another famous NFT is the Nyan Cat GIF. The GIF creator uploaded his work to the web almost a decade ago.
Since then, the Nyan Cat GIF has garnered a lot of attention around the internet.
But only recently, as blockchain technology and NFTs gained popularity, the artist turned it into an NFT and sold the property to Nyan Cat.
And the creator earned about six hundred thousand dollars in cryptocurrencies.
Please note that there are many reasons why this Nyan Cat GIF is being sold for such an insane price with no real benefit or value.
This is partly due to the creator’s early days in the NFT space, as well as the gif’s popularity on the internet.
Another prominent example of NFT sales is that of Jack Dorsey and Elon Musk. Both sold their tweets as NFTs.
Among them, Jack Dorsey, the former CEO of Twitter, sold his first tweet. He made about $3.9 million from that sale.
Numbers like these make it sound like NFTs are the easy route to wealth, but like other investments, the reality is that getting rich in NFTs isn’t easy.
In fact, most NFTs are just speculation at this point.
However, if you apply the same investment discipline and principles that you apply when buying stocks, you can build wealth in the NFT space over the long term.
Here are some questions you need to answer yourself before proceeding:
Are NFTs a good investment?
NFTs are a relatively new concept. Therefore, we cannot fully understand all its advantages and possibilities.
However, some of the benefits of making money from NFT have already become apparent.
Some NFTs can be a good investment, especially if you’re investing in someone who you think will actually be able to run what you’re trying to build.
However, most NFTs are bad investments, especially if you’re investing for the long term.
The way we view NFTs today will not be the same in 5-10 years as NFTs are used across industries and to achieve different outcomes.
However, the way people decide whether something is valuable and whether they are willing to spend money on something does not change significantly over time.
Our traditional market is mainly based on physical assets. These assets require complex processes when there is a change of ownership.
But when digital assets like NFTs work with them, the many responsibilities and issues associated with a change of ownership are simplified. This makes the market more fluid and agile.
The second great thing about dealing with NFTs is cutting out the middleman. The creator can attain absolute power and control over his fortune.
So no one can take advantage of the artist or the creators. This helps eliminate money thieves and lengthy and complicated transactions.
NFTs can become a means to share ownership of a physical asset. And this can be an effective solution to resolve disputes between multiple homeowners who have claims on the same property.
For example, it can be difficult to allocate a single apartment or piece of land to multiple owners. However, if you create an NFT of this apartment and land, you can easily divide and distribute the shares among the owners, which improves the transparency of the property.
Finally, the biggest benefit of getting rich with NFT is security. The blockchain technology that NFTs are built on is extremely difficult to hack.
No one can alter or erase the digital record that records your proprietary NFT information. Therefore, if your asset is an NFT, there is no possibility of theft.
Things to Consider Before Building Wealth with NFT
Before trying to get rich with NFTs and the technology that comes with them, there are a few things you need to consider first.
- What are your goals?
- How much money do you need before you think you’re rich, and how much time do you take to get there?
- Are there other things you can do before trying to get rich to achieve the same level of happiness that you believe getting rich will unlock?
Basic things like paying off your debt and cutting back on your expenses might not be something you want to hear, but it’s something to consider before trying to get rich from NFT.
Someone who makes $300,000 a year can live the same life as someone who makes $30,000 a year just because they have bad habits.
Worse still, someone making $30,000 a year can live more comfortably and with less stress than someone making $300,000 a year simply because they have no expenses and don’t spend their money on things they don’t need.
What we mean is, if you can’t handle $30,000 properly, how are you going to handle $300,000 or even $3 million? you won’t!
Once you’ve asked yourself these important and sensible questions and answered them correctly, you can start thinking about a plan to build wealth with NFT.
When deciding how to make big bucks from NFTs you must be absolutely honest with yourself and of course with other people who may be affected by your decisions.
Is your goal just to make a lot of money with NFT? Or are you interested in building your own business with NFT and building a strong and successful career?
Before you get rich with NFT, it’s important to understand that it goes well beyond the NFT itself.
There are many questions and answers that you need to address first and then work towards your goals on a daily basis, understanding that it takes a lot of time and patience to achieve something that many people will probably never achieve in their entire lives.
Being realistic about your goals and taking small steps every day to reach them sets you apart from someone who wants to get rich but doesn’t plan and implement to get there.
Getting rich is hard. Getting rich with NFT can be even more difficult. Especially if you don’t understand the potential of NFTs, their capabilities, and the fact that ultimately it is the people behind the technology that give NFT its value, not the fact that it is an “NFT”.
Now that we’ve settled that conversation, let’s talk about how you can get rich using NFTs as your trade.
How to get rich with NFTs
Finally, the answers to the question we’ve all been waiting for. Can NFTs make you rich? Yes, it can, and we have detailed how to go about it.
Please note that we are not financial advisors and investing in NFTs is extremely risky. Do it at your own risk.
- Buy and Sell NFTs (Day Trading)
- Invest in startups through NFT (long-term investment)
- Create your own NFTs
1. Buy and Sell NFT (Day Trading)
Buying NFTs with upside potential is one of the easiest ways to make big bucks from NFTs. It’s easy. You buy an NFT for $5 and then resell it for $50.
While this method of day trading is one of the most important ways people make money from NFTs, it is also one of the riskiest ways to invest your money in NFTs.
Typically, people who trade NFTs on the day just want to buy NFTs at a low price (usually immediately after they’ve been put up for sale) and then resell them for double, triple, or even more than triple the original price.
Please note that day trading is a full-time job. It doesn’t matter if you trade stocks or NTFS, you should be watching the market almost constantly either way. This way you know the right time to buy and the best time to sell.
If you plan to trade NFTs that day, make sure you have a fixed amount of money that you will use to trade. That way, you don’t spend your entire savings account on something that can easily backfire.
2. Invest in startups through NFT (long-term investment)
Just like investing in stocks for the long term or even being a venture capitalist (providing capital for startups), you can do the same with NFTs.
However, investing in an NFT for the long term can be much more difficult than day trading.
If you’re looking to invest in NFTs with the long-term goal of building wealth, you need to do a lot of research about the creator and what they’re trying to create.
You wouldn’t give a lot of money to a random person who told you it could make you rich, would you?
Well, that’s what a lot of people in the NFT space are doing. we consider it a limited game.
Investing in someone without knowing anything about them is the fastest way to lose not only your money but your faith and hope in technology as a whole.
If you want to help someone raise capital and make a profit in return, you’d better do your research.
Long-term investing in people building great things is my favorite way of investing in NFTs simply because we love people building.
There are some basic things you should know. Who is the creator of NFT? Take a look at the person’s employment history.
Have your previous projects been successes or failures? These elements can say a lot about the long-term performance of your NFT investment.
With that in mind, I’ve written a guide to finding good NFTs to buy: A Collector’s Buyer’s Guide.
This guide highlights some of the key things we look for when buying a potentially good NFT. By good, we mean an NFT that will increase in value over time.
Ultimately, investing in an NFT with long-term prosperity in mind requires a great deal of research, patience, and intuition.
Remember that when you invest in an NFT, you are investing in the creators behind the NFT.
3. Create your own NFTs
Of course, we saved the best for last. If you are a creator, a builder, or someone passionate about a specific subject, you can use NFTs as a platform to create something spectacular and even make a living from it.
You see, NFTs are simply a technology platform that allows developers and companies to build and deploy.
You can convert anything to NFT. Whether you are a painter, sculptor, fitness, or yoga teacher, you can use NFT to provide value to your customers, build trust and be completely transparent with your offerings.
It is up to you as the creator to determine how and what you offer. we think creating NFTs is the hardest way to get rich with NFTs, but it can also be the most rewarding.
If you’ve gotten to the point where you’ve made a lot of money selling NFTs, it’s probably because you’ve put a lot of time and effort into building a good reputation with your clients and others in your niche.
This means that you not only do what you love, you make a living from it. It’s called the American Dream.
Even if you create wealth by creating and selling your own NFTs then you have chosen that as your career and with that comes a lifetime of happiness and of course wealth if you do it right.
That’s why we think this option is the most rewarding, but also the most difficult.
If you think starting your own business and taking up NFT is the right step for you, check out these 10 NFT business ideas to get started today.
More tips to help you get rich with NFTs
Overall, there are tips and advice we can use to make money from NFTs that apply to wealth building in general. Let’s take a look at some of these tips:
- Before looking for more money, think about how you can reduce your current expenses
- Pay off any debt you have
- Invest time in learning about personal finance
- Don’t let emotions get in the way of facts.
- Focus on investing in the people and brands you’re passionate about supporting
- Create things that you enjoy, not what will make you more money
- Create a budget
- Don’t spend money you can’t afford to lose, have an amount of money you’re willing to risk to get more money from your risked money.
- Diversify your investments
- Always strive to know more and stay humble.
- Help others who are on a similar journey as you.
While these tips can be viewed as fairly general, we can say that they are extremely helpful and will ultimately help you not only build your wealth but to keep it.
Important points to remember
If there’s one thing we hope you’ve learned from this article, it’s that there’s a lot to consider before even thinking about getting rich with NFT.
Be honest with yourself, others, and your personal goals and expectations.
While there are many ways to make big bucks from NFTs (buy, sell, and make your own), it all involves extreme risk and an understanding of the current market at the time of your trades.
Additionally, the ways people make money from NFTs today will only increase as technology continues to advance, and with it the many use cases for NFTs.