NFT and media buying. How to profit from a new trend?
Not everyone clearly understands what NFT is, but the excitement around the new trend continues to grow. Investing in virtual images, acquiring digital lands, and buying cryptographic art from online galleries… While this sounds crazy to some, it becomes a daily routine for others.
Today you will learn more about NFT, what it is, and what this abbreviation has to do with online earnings.
What Is NFT in Simple Terms?
NFT stands for Non-Fungible Token, or simply saying, this is a certificate that proves the ownership of an object in the digital space.
This is not a physical document but a cryptographic one. Whatever digital asset or content the user purchases (image, video, post, character, or weapon in the game, GIF, or any other object), a code fragment is written in the blockchain, confirming the user’s rights after the purchase. The link to the original token is in the IPFS eternal storage. Thanks to modern cryptographic technologies, it is almost impossible to fake data in NFTs.
How Did NFT Technology Come About?
The first experience of using non-interchangeable tokens occurred back in 2013 within the framework of the Colored Coins and Counterparty projects. Then it was done using the Bitcoin blockchain language. As a result, exclusive “colored bitcoins” could not be counterfeited or spent more than once. The situation was similar with Counterparty – bitcoins were burned after each transaction and could not be obtained by mining. At that time, these were only isolated cases of applying the NFT concept to digital assets.
However, in 2015, Ethereum developers introduced a full-fledged NFT platform. It was like a game where users could become owners of hexagonal “plots” of land, each being unique and non-interchangeable. So Etheria became the first NFT project. Until the spring of 2021, hexagons were not popular, until one fine day within 24 hours, 457 fragments were sold for $14 million 😉
How are NFTs Different from Cryptocurrencies?
Each digital certificate is unique. Any unit of cryptocurrency is interchangeable, another can replace one bitcoin or tangible currency, and there are no two identical NFTs.
Can NFT Be Copied?
It is possible to copy a unique certificate for the ownership of a digital asset or object, but it is useless. This is because the second user can never become a unique owner. Instead, the user will have information that this object belongs to another user.
Is NFT Legally Binding?
To date, the ownership rights of a digital object, enshrined in the NFT registry, are not protected by law. That is, you can download a digital item and use it on the network or within your device. Such a unique token does not prohibit copying and using files but only allows you to assign a single owner to it. From this point of view, NFT is just a valuable digital souvenir. But every day, we are getting closer to digital certificates having the same legal force as official documentation.
“By the way, the virtual and real worlds are increasingly intersecting. In 2021 Blockchain company “Injective Protocol” chose a rather daring way to demonstrate such integration. A $95,000 Banksy painting “Morons” was burned during a live stream, after which its digital copy “left” the auction for $400,000. This was the first time virtual ownership of a real art object was sold, and the most expensive NFT token was sold for $69.3 million. It was an animation from an American artist called “The First 5,000 Days”.
But today you are more interested in how to make money on digital art, so let’s move on to this topic now.
How to Create an NFT Object?
Let’s say the digital art object is ready, and we can start selling it:
- First you need to choose a blockchain for NFT, a platform on which a unique token will be sold. Of course, you can do without it, but the probability of finding buyers is much higher because this is where your target audience is “hanging out”. The two most popular blockchains today are Ethereum and Solana.
- For Solana, the most relevant marketplaces are Solanart, Solsea, and Magiceden.
- For Ethereum – Opensea.
When comparing these two platforms, the following can be noted:
| Solana | Ethereum |
| Fast operation speed (65,000 transactions per second) | Low speed |
| Relatively low prices | High token price |
| Small commission fee ($0.00025) | Large commission fee (up to $45 per transaction) |
| Strict moderation | Minimum requirements for NFTs |
| Fast growth, good potential | Highly popular |
As for the entry threshold, Solana’s strict requirements on marketplaces significantly reduce the percentage of unsuccessful projects. For example, to upload a collection with several thousand unique tokens to Magiceden, you need to provide Discord, a website, Twitter with a subscription base, and a specific project concept. However, on Opensea, everyone can upload any project without any checks; all that remains is to send traffic and earn.
“Please note that transferring tokens from one blockchain platform to another is impossible. Therefore, all future transactions will take place within the selected platform.”
If you are trying to make money on NFT, we recommend choosing marketplaces on Solana while monitoring and analyzing active projects on Ethereum.
2. Next, you need to create wallets where NFTs will be stored.
You can download the Metamast extension for desktop and mobile devices if you select Ethereum. For Solana, the Phantom wallet is more suitable. Launching browser extension and wallet replenishment are simple and fast with the help of crypto exchanges and currency exchangers.
Important! To make money on NFT, you can choose any cryptocurrency and even create your own (but this is not practical). At the same time, you need to check whether the selected marketplace supports it. If not, change the blockchain platform or cryptocurrency.
- Get ready to “pay for gas.”
In this context, it means reimbursement of electricity and computing power costs required to generate your blockchain. There are platforms where you do not need to pay Gas Fees, but they are definitely not the most popular. Specify the size of this commission in advance. Ethereum, for example, has a Gas Fee ranging from $50 to several hundred dollars.
In the blockchain, you can set a limit – the maximum amount of Gas fee you are willing to pay. Please note that Gas Fees are usually lower on weekends. This is since the load on the server is much lower on weekends.
- Prevent more than one certificate from being created using invisible code.
- Set up synchronization of the bitcoin wallet and the selected platform.
This way, you can demonstrate the authenticity of your NFT to potential customers and allow them to purchase it.
- All that is left is to put the digital object up for sale.
This can be done by following the prompts of the blockchain platform. NFT will become available for sale after moderation, and you will have to wait a few days. For promotion, you can use the same methods as for other offers.
Non-fungible tokens on the blockchain platform can be sold at a fixed price or in auction mode. For the second option, set the starting price of your “digital artifact” and set up access parameters.
That’s all. Then your tokens go to the auction. If they were bought, payment would be sent to the linked wallet. With some networks, additional rewards are accrued from subsequent transactions in which your NFTs will participate.
The cooler and more relevant your product is, the more actively you promote it and communicate in the community, and the more chances you have to sell an NFT certificate faster and more expensively.
NFT Media Buying
By the way, to earn NFT tokens, it is not necessary to create them. Instead, you can buy and sell them for more.
If you decide to invest in the NFT, you have two options:
- media buying on secondary “lots” – is the purchase and subsequent resale of NFTs that are already on the trade market.
- NFT tokens purchase, which will soon become available to buyers – you can buy tokens with great potential at pre-sales.
The first method is more suitable for prominent players in the NFT market. However, if you are not ready to invest thousands of dollars in big projects, choose the second option.
At this stage, the following recommendations will be helpful:
- for successful NFT media buying, choose sites that advertise interesting and promising projects before they enter the trade market;
- after choosing a project, you need to be prepared: first, get into the whitelist – buying NFT is not so easy. Developers give preference to the most active (you need to subscribe to social networks and fulfill specific conditions);
- tokens sell out in a matter of seconds, so get ready 10-15 minutes before the start of sales to be among the first potential buyers;
- register several accounts at once – as a rule, NFT developers do not give more than ten tokens to one buyer.
Then it all depends on your response. Most NFTs are sold out in a split second at the start of sales. The resale value depends on the exclusivity of the digital certificate, usually starting at 30%. After that, the percentage increases significantly on rarer NFTs. Here you can decide based on other players’ prices in the NFT market.
How are NFTs Related to Affiliate Marketing?
So, the prospect of making money on NFTs is clear.
Now let’s get back to affiliate marketing and see how the new trend will affect the work of affiliates and webmasters:
- The emergence of new offers or a new vertical.
The excitement around unique tokens will only grow in the next couple of years. We are confident that new platforms, types of NFTs, auctions, etc. will be actively created during this period. Obviously, the development of such projects requires traffic, for which new offers in the crypto niche or even a separate NFT vertical will appear.
- New analytics tools.
To find out where new users came from, you can use the non-fungible tokens themselves. This means affiliate marketers may have to learn entirely new NFT-specific tracking tools.
- Traffic quality control.
There is a possibility that the concept of NFT will be used to combat low-quality traffic. Since unique tokens are designed to “protect” the copyright of any online object, some of the standard tools of affiliates will soon cease to exist. For example, it will become useless to spam and farm accounts. It is difficult to predict when this will happen, but we think it will happen sooner or later.
The NFT industry market is just emerging, and even if fungible tokens do not reach the next level of success, they will lay the foundation for something new in digital technologies. Today NFT is still another promising way to make money on the Internet.
