How to make money on the new trend of NFT tokens

A new trend of NFT tokens (non-fungible tokens) has burst into the cryptocurrency world — this is a new type of digital goods that are non-fungible tokens. This, in fact, is their value — in uniqueness.

Let’s consider the properties of fungibility using an example from everyday life. Suppose you lent your friend 100 rubles by giving him a bill of the corresponding denomination. The fungibility of money allows you not to think about whether your friend will return the same bill to you or it will be any other 100-ruble bill, unless we are talking about some collectible coins.

NFT tokens, like collectible coins, are unique in their kind.

The uniqueness is realized thanks to the new cryptoasset standard ERC-721. Unlike conventional ERC-20 fungible tokens, the NFT token cannot be counterfeited, replaced or broken into pieces. There are also several other NFT token standards in existence today. For example, ERC 1155 is a token that can be issued in multiple copies, and ERC 988 is playable characters who can own multiple in-game items.

Where NFT is applied

Regardless of the technical details, NFT can be used to prove ownership of an object. And thanks to the tokenization of real assets, NFT can reflect the fact of their ownership. Such an object or asset can be an image, real estate, music, any digital artwork, game item or character. NFT, thanks to the unique information recorded in the smart contract, can confirm the authenticity of documents.

NFT tokens can be compared to baseball cards, which are also unique and therefore very popular among fans of this sport.

Collectors are willing to shell out colossal sums at auctions for rare baseball cards. In 2007, one of these cards with the image of the American baseball player Honus Wagner, printed in 1909 in the amount of 57 copies, was sold on Ebay for $ 2.8 million.

Whether the same fate awaits for NFT tokens is difficult to say today, but given the growing popularity of the blockchain and cryptocurrency sphere, such a possibility exists.

How did it all begin?

For the first time, they started talking about such assets after the implementation of the Colored Coins and Counterparty technology, thanks to which it became possible to “paint” crypto tokens to make them unique (the introduction of a special add-on to the Blockchain protocol).

In January 2017, the HOMERPEPE meme tokenized on Counterparty was bought for $ 500. About a year later, in January 2018, at the first Rare Pepes live auction, this meme was resold for $ 38,500 in PepeCash tokens.

But NFT tokens got more widespread after the Larva Labs team released a collection of CryptoPunks with images of various heroes. A total of 10,000 such cards were created and you could get them completely free of charge. The monkey in the cap, which we talked about at the beginning of the article, is from this collection. But in fact, 140 ETH is not a record transaction amount for crypto banks. A little earlier, another character from this collection was sold for 189.99 ETH.

Cryptobank sold for 189.99 ETH

Another prominent representative of NFT is CryptoKitties. The real breakthrough for CryptoKitties happened after the opportunity to breed them was realized. The owner of the cat negotiates with the owner of the cat about crossing. After receiving the offspring, the owner of the cat takes the kitten, and the owner of the cat takes the cash equivalent in ETH. Take a look at this cute crypto cat.

A card with his image was sold for 600 ETH ($ 636,750)

Where to sell or buy NFT tokens

The most popular site today is opensea.io.

Here you can buy and sell any kind of NFT tokens. All assets here are divided into categories: Art, Domain Names, Virtual Worlds, Trading Cards, Collections, Sports and Utility. For example, in the Virtual Worlds section, you can purchase a digital land parcel. Prices for some plots already today are not much different from prices for real real estate.

This digital piece of land was sold for 85 ETH (6.8 million rubles)

Another interesting NFT project is Zen.Run . Marketplace for buying / selling digital racehorses. As in the CryptoKotics project, after the purchase of horses, they can be crossed and most likely in the future the value of horses from the first offspring will increase. As of today, the minimum purchase price is $ 40.

How to get NFT tokens for free

There are several ways to get NFT tokens for free.

The first way. Purchase for Rewards

You can get NFT tokens by collecting special points on the cryptoasset aggregator Coingecko.com. After registering, go to the rewards section every day and receive special Candies bonus points. If you log in for a reward every day, then the number of Candies increases every day throughout the week.

Several times a month, special collections of NFT tokens from Coingecko appear on the site, which you can exchange for these points. In addition to the NFT token, these promotional packages also include T-shirts, notebooks and other branded products. Some of the cards received from Coingecko have already been purchased from the opensea.io marketplace. One of these funny frogs was sold for 1.5 ETH. (120 thousand rubles.)

Second way. Creating your own NFT token

On the opensea.io website, in the “Create” section, anyone can create their own NFT token absolutely free of charge.

To do this, you need to connect the MetaMask wallet.

There are many instructions on the network for installing and connecting MetaMask, so we will not dwell on this in detail in our article.

After connecting the MetaMask wallet, you can proceed to creating your NFT token by clicking the Create button.

Then you need to fill in all the fields, upload the logo and cover of your own NFT token and album. When you create three NFT tokens, the verification of the album will become available to you, after completing it, your NFTs will be posted on the marketplace and you can sell them.

Third way. Participation in distributions and draws

Influential participants in the NFT ecosystem, such as crypto exchanges, developers and founders of NFT projects, often hold various kinds of raffles with the distribution of NFT tokens. One of the developers of the Avalanche project, Don Wonton, periodically raffles the NFT tokens created on the blockchain of this project among his followers on Twitter . To participate, you just need to indicate in the comment on the tweet the address of your Avalanche wallet and retweet the entries. Don Wonton usually plays about 20 cards. Judging by the number of retweets, the odds of winning are pretty high. Therefore, if you are interested in this area, you should definitely try.

Conclusion

Despite the fact that NFT is still a very young technology, and the volumes of this market are still rather modest, its prospects are enormous, therefore, in our opinion, the history of NFT is just beginning. But we remind you that all information is for informational purposes only and does not constitute our recommendation or call for investment.

It’s an interesting time to be around the NFT economy, as interest and opportunities in the space have never been higher. Combine this reality with the fact that more than a few projects have recently started to experiment with NFT + DeFi melds, and it’s hard to see how NFTs don’t continue to ramp up in utility and popularity in Crypto currency from here.

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Theotis Davis

Theotis Davis

I am a internet marketer, writer, video editor and all around good guy😎

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