If you&rsquo;ve read the previous sections in this Crypto 101 Handbook, you know that <strong>the topic of NFTs was already covered quite extensively</strong>. We&rsquo;ve discussed both what these crypto assets are, as well as, among other things, how you can start trading and storing them.</p>\n<p>However, what if flipping and trading NFTs isn&rsquo;t necessarily your cup of tea? What if, instead, you&rsquo;re a creative person who wants to launch their own non-fungible token, or perhaps even an entire collection? Well, all that you really need in that situation is to learn how to create NFTs.</p>\n<p>In this section, <strong>we&rsquo;re going to talk about how to create your own NFTs</strong>. Specifically, I will guide you through the entire process of creating your very first non-fungible token - everything from figuring out the direction that you might want to take, all the way to launching your project on one of the biggest NFT marketplaces in the world!</p>\n<p><em>Without further ado, let&rsquo;s get to it!</em></p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 comparison-suggestion pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https://assets.bitdegree.org/crypto/assets/images/compare-crypto-exchanges.gif/"/n alt=\"How to Create an NFT: Easiest Way (Animated Explainer)\"\n title=\"How to Create an NFT: Easiest Way (Animated Explainer)\" class=\"border-0\">\n <p>Video Explainer</p>\n </div>\n </div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: How to Create Your Own NFTs?</h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"How to Create Your Own NFTs?\" video explainer</p>\n </div>\n </div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"Pdp654fGCu0\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"></div>\n <p class=\"text-left dyk-video-title\">How to Create an NFT: Easiest Way (Animated Explainer)</p>\n <img src=https://www.bitdegree.org/"https://i.ytimg.com/vi/Pdp654fGCu0/hq720.jpg/"/n alt=\"How to Create an NFT: Easiest Way (Animated Explainer)\"\n title=\"How to Create an NFT: Easiest Way (Animated Explainer)\"\n class=\"p-0\">\n <img class=\"play-button\" data-target=\"#video-modal\"\n src=https://www.bitdegree.org/"https://assets.bitdegree.org/crypto/assets/video-button.png/"/n alt=\"How to Create an NFT: Easiest Way (Animated Explainer)\">\n </div>\n </div>\n </div>\n </div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https://www.youtube.com/c/CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"></i>\n </div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE</h4>\n <span>ON YOUTUBE</span>\n </div>\n </div>\n </a>\n </div>\n </div>\n </div>\n </div>\n</div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\" aria-labelledby=\"Pdp654fGCu0\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"></i>\n </button>\n <div id=\"iframe\"></div>\n </div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https://www.youtube.com/c/CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https://assets.bitdegree.org/crypto/assets/crypto-subscribe.jpg/" alt=\"Subscribe\">\n </div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE</span>\n </p>\n </div>\n </div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease</h4>\n <span>New explainer videos every week!</span>\n </div>\n </div>\n </div>\n </div>\n </a>\n </div>\n </div>\n</div>\n<h2>Figuring Out the Dos and Don&rsquo;ts</h2>\n<p>To start things off, <strong>I will assume that you&rsquo;ve already read the previous sections about NFTs in this chapter</strong>, and that you&rsquo;re at least somewhat familiar with the concept of what they are. If that&rsquo;s not the case, I highly recommend reading them, before continuing with this section!</p>\n<p>Now, then, before we get too deep into it, there are a few essential things that you need to decide, as you start learning how to create an NFT. For a quick reference, these things are:</p>\n<ul>\n<li>The purpose of your NFT;</li>\n<li>The art direction that you want to take;</li>\n<li>The properties that your NFT will have;</li>\n<li>The blockchain that you&rsquo;d want to launch your NFT on;</li>\n<li>The rarity, additional features, and so on.</li>\n</ul>\n<p>Most of these points will mostly be applicable to any type of NFT that you might want to create, but there are a few which are specific to NFT collections, instead of single tokens. That said, let&rsquo;s take a closer look at each of these mentioned points.</p>\n<h3>The Purpose of Your NFT</h3>\n<p>So, the very first thing that you need to decide when looking at how to create an NFT is the purpose of your project. This is one of those points that are rather self-explanatory - if you&rsquo;re creating an NFT, you probably have a pretty good idea of why you&rsquo;re doing so, right?</p>\n<p>This process of establishing a clear purpose is very important, however, since it will lead you all throughout your journey. Are you creating an NFT strictly to make a profit by selling it? Perhaps you&rsquo;re doing an art project, or a university assignment? All of these situations are frankly going to have different approaches, and different points that you&rsquo;d need to focus on!</p>\n<h3>Art Direction</h3>\n<p>Moving on, art direction is essentially the thing that will either set your NFT apart from the competition, or make it blend in with the thousands of other projects. It&rsquo;s the same as if you were to try and sell, say, custom-made coffee mugs - if your mugs look the exact same as those of hundreds of other sellers, chances are that you&rsquo;ll struggle to find success.</p>\n<p>On the flip side, if your coffee mugs are unique, even a bit eccentric, perhaps, there&rsquo;s a pretty good possibility that you&rsquo;ll find a customer base easier. The same is true with NFTs!</p>\n<p>I should, however, mention that this is something that will also depend heavily on who you are. I mean, if you&rsquo;re an artist who already has a distinct art style, I think that this point might seem pretty trivial to you. If you don&rsquo;t have any digital art skills, though, and will rely on others (for example, freelancers) to create the artwork for you, keep everything that I&rsquo;ve just told you in mind!</p>\n<h3>The Properties of the NFT</h3>\n<p>Next up, we have the properties of the actual NFT. This is mostly going to be important to you if you&rsquo;re looking at how to create an NFT collection, instead of a single non-fungible token.</p>\n<p><strong>Now, what are &ldquo;properties&rdquo;, in the context of NFTs?</strong> Well, think about it like this - if you&rsquo;re looking at how to create NFT art in the form of a drawing of some sort of a character, its properties could be the color of the character&rsquo;s hair, what they&rsquo;re wearing, the jewelry they have on them, their skin color, and so on.</p>\n<p>Essentially, it&rsquo;s like the description of the artwork - in a collection, all of these properties are likely going to be different, for each unit.</p>\n<p>Why is all of this important, in the first place? Well, it mainly has to do with <strong>the concept of rarity</strong>.</p>\n<p>Essentially, while you&rsquo;re looking at how to create your own NFTs, you&rsquo;ll learn that most NFT collections have a rarity system associated with their artwork - think of it as if it were collectible trading cards. Some of your tokens might be very common, while others - super-rare. This will eventually dictate the price of each piece of art, as well! Properties are a great way to differentiate between common and rare NFTs, within that same collection.</p>\n<h3>The Blockchain That You&rsquo;ll Launch Your NFT On</h3>\n<p>The next major point to consider, when you&rsquo;re learning how to create an NFT, is the network that you&rsquo;ll be launching that NFT on. This has a few different implications.</p>\n<p>First of all, in many cases, <strong>NFT launches may include paying a fee to mint your NFT on the blockchain</strong>. These days, there are various ways to get around this - postponing the minting process, allowing your future customers to mint the NFT themselves, and so on.</p>\n<p>It kind of answers the question of how much does it cost to create an NFT of your own, too. If you choose to learn how to create NFT art without coding, do the work yourself, and launch your project on a dedicated marketplace, your costs could be as low as zero!</p>\n<p>Sticking with the traditional model, however, you might have to pay some minting fees, unless you choose to mint the NFT on, say, the <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/learn/what-is-polygon-in-crypto/">Polygon blockchain. Different networks have different fees associated with them - some are negligible, while others could get pretty costly!</p>\n<p>That being said, <strong>it&rsquo;s important to consider the popularity of the blockchain network</strong>, as well. If you mint your NFTs on a network that&rsquo;s not really all that popular, and isn&rsquo;t supported by one of the big NFT marketplaces (like <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/goon/opensea/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>OpenSea</strong></a> or <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/goon/rarible/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Rarible</strong></a>), then your project could be doomed to fail, straight from the get-go.</p>\n<p>My advice here is to <strong>stick with &ldquo;the network that started it all&rdquo; - namely, Ethereum</strong>. Non-fungible tokens that are minted on the Ethereum network are exposed to a huge potential audience, since it&rsquo;s the most popular network to mint NFTs on, in the first place.</p>\n<p>At the same time, if you want to create NFTs for free, the aforementioned Polygon is a good option, as well. Being a <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-layer-2/">Layer-2 solution</strong></a> for Ethereum, it still retains the popularity aspect, but might offer super-low or even non-existent minting fees for your tokens!</p>\n<h3>Rarity, Benefits, Giveaways, etc.</h3>\n<p>The last point that you need to consider, when learning how to create NFTs, has to do with everything that surrounds your token project - in other words, all other important features that your NFT will possess.</p>\n<p><strong>Rarity</strong>, for example, is one such feature - it was already mentioned before, but rarity is really important, since it can create a strong <em>&ldquo;fear of missing out&rdquo;</em> feeling in potential future collectors. Depending on how many NFTs your collection will house, it&rsquo;s a good idea to think about the rarity system that you&rsquo;ll want to implement, as well! I mean, if you&rsquo;re looking at how to create 10,000 NFTs, it would probably be smart to employ a few custom rarity levels, too!</p>\n<p>Moving on, you should also consider any <strong>additional features</strong> that you&rsquo;ll want your NFTs to have. So, for example, imagine that, in addition to being a crypto enthusiast, you&rsquo;re also a musician, as well. Perhaps you have a new mixtape that you&rsquo;d like to share with the world? Or, maybe, you have concert tickets to see some famous band, and you&rsquo;re willing to give them up?</p>\n<p>Essentially, you could add <strong>additional benefits</strong> to your NFT! Whether it be something that only the initial buyer would receive, or a perk that all future holders of the token would get, it&rsquo;s completely up to you. This could definitely boost the value of your project, and make it more appealing!</p>\n<h2>Launching Your NFT Project</h2>\n<p>So, by now, you should have a pretty good idea of all the points that you&rsquo;ll need to cover with your NFT idea. If you have all of that figured out already, though, it&rsquo;s time to move on to the actual question of <strong>how to create an NFT</strong>!</p>\n<p>While there are a few ways of how we can approach this, I&rsquo;ll tell you about <strong>the OpenSea method</strong>. It&rsquo;s the most popular NFT marketplace on the planet, and learning how to create an NFT on OpenSea is super-fast and simple!</p>\n<p>Note, though, that there are other software to create NFT art out there, as well. However, if you learn the OpenSea route, you&rsquo;ll have some solid foundations, for any future endeavors of this kind!</p>\n<p>What you&rsquo;ll want to do first is navigate to the website, and then connect your crypto wallet to it. If you don&rsquo;t have a wallet yet, or would like to learn more about crypto wallets, in general, there are a few dedicated sections on the topic in this Crypto 101 Handbook - <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/learn/what-is-a-crypto-wallet/">check them out</strong></a>!</p>\n<p>Once you have your wallet connected, you will then want to navigate to your profile, and click &ldquo;Create&rdquo;. This will bring you to the page where all of your NFT creation magic will happen!</p>\n<p>This is where you&rsquo;ll want to upload your artwork, name your NFT, as well as describe it, as best you can. On the same page, you will also be able to attach any and all properties or unlockable content that you might have come up with, to your NFT, and then choose the blockchain network that you want the token to be minted on.</p>\n<p><strong>Now, picking out a network is a really important step!</strong> As it was mentioned, though, if this is your first NFT mint, it&rsquo;s probably a good idea to stick to Ethereum or Polygon.</p>\n<p>Once you create your NFT, you will then be able to navigate to the sales page, and create a listing - namely, choose the price of the token, whether it&rsquo;s a fixed sale or an auction, and so on. The fantastic thing about OpenSea is that you won&rsquo;t really need to pay any gas fees, upfront - since the token will only be minted on the blockchain when someone purchases the NFT, this is when the minting fees will be paid, as well. <strong>So, essentially, if you were looking for how to create NFTs for free, this is the way!</strong></p>\n<p>As a quick side note, if you want to create an entire collection of NFTs, and not just a single token, you should first go to your profile on OpenSea, and navigate to the &ldquo;My Collections&rdquo; tab. You will be able to enter all of the important information about your collection here, and then add created NFTs to it later on.</p>\n<h2>Wrapping Up</h2>\n<p>That&rsquo;s about it, really - <strong>you now know how to create an NFT</strong> <strong>on OpenSea! </strong>The process has been made really simple and beginner-friendly, and there are arguably many more things to consider before you start creating your NFTs, rather than during the actual process.</p>\n<p>This isn&rsquo;t where your work ends, however - now that you have your NFT created and listed on the biggest non-fungible token marketplace in the world, the next step is to market it successfully!</p>","preview_url":"https://www.bitdegree.org/crypto/learn/how-to-create-an-nft","youtube_video":{"id":147,"channel_id":1,"sort":5,"video_title":"How to Create an NFT: Easiest Way (Animated Explainer)","description":"How to create an NFT?\n\nWhile trading and collecting NFTs is undoubtedly a very popular phenomenon nowadays, so is creating non-fungible tokens of your own. If you’ve never dealt with NFTs before, however, this process might come off as rather daunting and intimidating!\n\nIn this video, I will tell you how to create an NFT, from scratch! I’ll cover all of the important criteria to consider before the actual creation process, and then show you how to make your first NFT on the most popular non-fungible token marketplace in the world, step by step.\n\nHave you ever created an NFT? Make sure to share your experiences in the comments below the video!\n\nVideo Time Table:\n0:00 Introduction to How to Create an NFT\n1:51 The Purpose of Your NFT\n2:22 Art Direction\n3:11 The Properties of the NFT\n4:19 The Blockchain for Your NFT\n5:53 Other Important Features\n7:07 Launching Your NFT Project\n9:03 Wrap-up: How to Create an NFT?\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps://twitter.com/crypto_xplained\n\n#HowToCreateanNFT #OpenSea #NFT","video_id":"Pdp654fGCu0","duration":581,"view_count":176,"thumbnail_url":"https://i.ytimg.com/vi/Pdp654fGCu0/hq720.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2023-04-28 13:59:58","created_at":"2023-04-28T23:00:03.000000Z","updated_at":"2023-05-21T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}}},"chapterTitle":"NFTs","cryptoBookSection":{"id":13,"featured_image_id":6524,"original_id":null,"youtube_video_id":13,"author_id":40,"translator_id":null,"chapter_id":5,"title":"Making Passive Money with NFTs","slug":"how-to-make-passive-money-with-nft","definition":"Did you know that when the Bored Ape Yacht Club initially launched, each Ape NFT cost 0,08 ETH (a bit over $200)?","status":"published","content":"<p>In this section, I will tell you about how to make passive money with NFTs!</p>\n<p>Imagine yourself in an ice cream shop. You walk in, exchange pleasantries with the shop owner, and order some chocolate ice cream. Sitting at the nearby table, you check your portfolio of <strong>Bored Ape NFTs</strong> - you know that you&rsquo;ve already made enough money to pay for the ice cream, during the time that it takes to make it.</p>\n<p>Sounds cool? Well, this is actually very possible with passive income NFTs!</p>\n<p>In this section, I&rsquo;ll tell you all about how to make passive money with NFTs! We&rsquo;ll start off with a quick introduction to <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-non-fungible-token-nft/">NFTs, in general, and then discuss some of the potential ways how you could make a passive income, simply by holding them!</p>\n<p>Let&rsquo;s get to it!</p>\n<h2>What are NFTs?</h2>\n<p>Let&rsquo;s start at the beginning - what is an &ldquo;NFT&rdquo;, in the first place?</p>\n<p>Now, here, we&rsquo;ll go through the concept of NFTs in a semi-quick manner. If you&rsquo;d like to understand the technology behind it in-depth, there is a separate, dedicated section on the topic of <strong><a href=https://www.bitdegree.org/"/crypto/learn/what-are-nfts/">NFTs - make sure to check it out!</p>\n<p>An &ldquo;NFT&rdquo; is a non-fungible token. This is a pretty fancy way of saying that it&rsquo;s something completely unique - something that can&rsquo;t be replaced with anything else.</p>\n<p>Many people think that NFTs are the <strong>little jpeg images</strong> that we see online - images of animated monkeys, cyberpunks, and other characters. Well, let me tell you - that&rsquo;s not the case.</p>\n<p>Instead, an NFT is a piece of completely unique code on the blockchain - code that references and points to that image, which, by itself, is stored on some server. By now, you've probably learned more about them in the \"Blockchain\" chapter. This is really important information that you&rsquo;ll require moving forward.</p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to make passive money with NFTs: What are NFTs?\" src=https://www.bitdegree.org/"https://assets.bitdegree.org/crypto/storage/media/how-to-make-passive-money-with-nft-1.o.jpg/" alt=\"How to make passive money with NFTs: What are NFTs?\" width=\"801\" height=\"393\" /></p>\n<p>A good example of some well-known NFTs is one that I&rsquo;ve mentioned at the beginning of this section - the Bored Apes. Better known as the Bored Ape Yacht Club, this is a collection of 10,000 different digital apes. When they were initially launched back in April 2021, each Ape NFT cost 0,08 ETH (in today&rsquo;s money, that would be a bit over $200). Today, <strong>a single Bored Ape NFT</strong> will cost you anywhere from $170,000!</p>\n<p>That&rsquo;s insane!</p>\n<p>NFTs do face a lot of criticisms, the most popular of which is the idea that pixelated images and poorly-drawn art isn&rsquo;t worth such amounts of money, and that it's simply a bubble that&rsquo;s going to burst. Be that as it may, one of the main reasons why NFTs have become as popular as they are is because of exactly that - the ability to earn a passive income, and other perks, simply by holding them!</p>\n<p style=\"text-align: center;\"><img title=\"How to make passive money with NFT: 10,000 Bored Apes.\" src=https://www.bitdegree.org/"https://assets.bitdegree.org/crypto/storage/media/how-to-make-passive-money-with-nft-2.o.jpg/" alt=\"How to make passive money with NFT: 10,000 Bored Apes.\" width=\"800\" height=\"402\" /></p>\n<p>We all have that one friend who slides back into our DMs every year or so, offering yet another &ldquo;business idea&rdquo;, and telling you how you can &ldquo;make tens of thousands of dollars without doing anything if you just listen to what he has to say&rdquo;. I hate to say it, but, in most cases, these offers turn out to be pyramid schemes!</p>\n<p>How are <strong>passive income NFTs</strong> different? Well, for starters, you won&rsquo;t really find many NFTs that would offer their holders millions of dollars of returns per day - that&rsquo;s simply not the case. Furthermore, as I&rsquo;ve already told you, NFTs are built on <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-blockchain/">blockchain technology. What this means is that anyone is able to check the code behind the NFT, and inspect its passive earning mechanics.</p>\n<p>Lastly, once again - NFTs are still a new thing! People are just now becoming aware of this technology, and all of the potential that it has. Naturally, with it being a new concept, the potential earnings are very inconsistent, as well! With time, however, the actually-viable passive income NFTs will flush out, and new ideas will come to fruition, as well!</p>\n<h2>Examples of How to Make a Passive Income with NFTs</h2>\n<p>Imagine that you&rsquo;re a game designer - you&rsquo;re creating an online game, where players will be able to pick certain characters, and battle each other.</p>\n<p>Now, you decide that there will be 100 different characters in the game. On top of that, before launching the game to the masses, you also decide to hold a public sale for the characters, in the form of NFTs - anyone can come in and purchase said characters <strong>as non-fungible tokens</strong>.</p>\n<p>Now, your in-game character NFTs have a special utility. Each time some player picks the character that you&rsquo;ve purchased within the game, you will get a small commission fee, in the form of, say, Ethereum coins, or game-related tokens.</p>\n<p>This way, all that a player needs to do is make the initial &ldquo;investment&rdquo; - in other words, purchase the actual NFT of the character. Then, they can simply sit back, and relax - the earnings will be periodically transferred to their <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/best-cryptocurrency-wallet/">cryptocurrency wallet</strong></a>!</p>\n<p>Naturally, those earnings are <strong>likely going to be small</strong>, but they will add up! This does actually motivate the owner of the NFT to promote the game to friends and other individuals, since the more people play, the more people will pick your character, and thus, the more passive income you will earn!</p>\n<p><img title=\"How to make passive money with NFTs: Examples of how to make a passive income with NFTs.\" src=https://www.bitdegree.org/"https://assets.bitdegree.org/crypto/storage/media/how-to-make-passive-money-with-nft-3.o.jpg/" alt=\"How to make passive money with NFTs: Examples of how to make a passive income with NFTs.\" width=\"801\" height=\"384\" /></p>\n<p>Another very popular example of passive income NFTs would have to do with your favorite video content creators - YouTubers!</p>\n<p>Chances are that you have your favorite YouTuber - maybe it&rsquo;s Pewdiepie? Or MKBHD?</p>\n<p>Well, imagine if you could support your favorite creator, by investing in them! Let&rsquo;s say, you believe that Pewdiepie&rsquo;s channel will keep on growing exponentially throughout the upcoming years. On top of that, let&rsquo;s say that Pewds decided to release a limited collection of NFTs related to his channel - <strong>1,000 different images</strong> representing his years and achievements on YouTube.</p>\n<p>Fans who purchase these NFTs will unlock a special feature - every month, you will receive a set portion of the YouTube revenue that Pewdiepie makes, as passive earnings of your own! This feature will be available forever, and for as long as you're the owner of the NFT.</p>\n<p>Now, obviously, NFTs like this would cost A LOT of money, to begin with. But that&rsquo;s exactly my point, too - this is why some NFTs are priced as high as they are! The market decides what each NFT is worth - whether it be because of its utility, rarity, or any other reason.</p>\n<p>As a final example, let&rsquo;s talk about <strong>music.</strong> Specifically, artists taking their songs, and creating NFTs out of them.</p>\n<p>This actually isn&rsquo;t a new phenomenon, in the first place. Artists like the Weekend and Grimes have been delving into the NFT space for some time now! However, it can be perfectly possible to make passive money with music NFTs, as well!</p>\n<p><img title=\"How to make passive money with NFTs: Examples of how to make a passive income with NFTs.\" src=https://www.bitdegree.org/"https://assets.bitdegree.org/crypto/storage/media/how-to-make-passive-money-with-nft-4.o.jpg/" alt=\"How to make passive money with NFTs: Examples of how to make a passive income with NFTs.\" width=\"801\" height=\"492\" /></p>\n<p>Imagine that you have a favorite artist. One day, you see that they&rsquo;ve released an NFT collection. On top of some awesome artwork and songs, the collection also includes <strong>special licensing</strong> - if you&rsquo;re one of the holders of said NFTs, the artist will pay out a portion of the revenue that their songs from that collection make per month, on a platform such as like Spotify.</p>\n<h2>Problems with Passive Income NFTs</h2>\n<p>With the few examples I&rsquo;ve given throughout this section, you could clearly see that NFTs can act both as a method of supporting your favorite artists, musicians, and brands, as well as a way to make some passive money, on the side.</p>\n<p>It&rsquo;s worth mentioning, however, that there are a few things to be on the lookout for, if you&rsquo;re thinking about going out and buying some passive income NFTs of your own.</p>\n<p>The biggest point here is that such NFTs are usually <strong>very costly</strong>. The more potential an NFT has, and the more well-known the person or brand behind its creation is, the more it&rsquo;s likely going to cost. If you want to find awesome and huge potential-possessing NFTs that wouldn&rsquo;t break your bank, you will need to spend a lot of time in this industry, and on the market, and really put your research skills to the test!</p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to make passive money with NFTs: Problems with passive income NFTs.\" src=https://www.bitdegree.org/"https://assets.bitdegree.org/crypto/storage/media/how-to-make-passive-money-with-nft-6.o.jpg/" alt=\"How to make passive money with NFTs: Problems with passive income NFTs.\" width=\"800\" height=\"605\" /></p>\n<p>Another thing to take note of are the Ethereum gas fees. Most non-fungible tokens are based on the Ethereum blockchain. This means that all of the transactions - NFT acquisition, royalty payments, and so on - happen on this same blockchain.</p>\n<p>The issue here is that Ethereum transactions tend to be rather costly. Depending on a few different factors, you could lose out on a lot of potential profits! Now, there&rsquo;s an update planned for Ethereum, called <strong>ETH 2.0</strong> - this update should cut the gas fees of Ethereum-based transactions exponentially!</p>\n<p>Wrapping things up, I hope that this section helped you to learn about how to make passive money with NFTs.</p>","meta_title":"How to Make Passive Money With NFTs: An Extensive Guide","meta_description":"Find out how to make passive money with NFTs as well as how to invest and sell NFTs. You'll find a clear guide with various examples.","meta_keywords":"how to make money with nft, passive income nft, how to invest in nft, how to sell nft, how to sell nft art","order":6,"language":"en","created_at":"2022-05-03T10:43:46.000000Z","updated_at":"2023-02-27T12:29:07.000000Z","modified_content":"<p>In this section, I will tell you about how to make passive money with NFTs!</p>\n<p>Imagine yourself in an ice cream shop. You walk in, exchange pleasantries with the shop owner, and order some chocolate ice cream. Sitting at the nearby table, you check your portfolio of <strong>Bored Ape NFTs</strong> - you know that you&rsquo;ve already made enough money to pay for the ice cream, during the time that it takes to make it.</p>\n<p>Sounds cool? Well, this is actually very possible with passive income NFTs!</p>\n<p>In this section, I&rsquo;ll tell you all about how to make passive money with NFTs! We&rsquo;ll start off with a quick introduction to <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-non-fungible-token-nft/">NFTs, in general, and then discuss some of the potential ways how you could make a passive income, simply by holding them!</p>\n<p>Let&rsquo;s get to it!</p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 comparison-suggestion pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https://assets.bitdegree.org/crypto/assets/images/compare-crypto-exchanges.gif/"/n alt=\"How to Make Passive Money with NFT? (Explained!)\"\n title=\"How to Make Passive Money with NFT? (Explained!)\" class=\"border-0\">\n <p>Video Explainer</p>\n </div>\n </div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: Making Passive Money with NFTs</h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"Making Passive Money with NFTs\" video explainer</p>\n </div>\n </div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"a179AuiN9Xw\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"></div>\n <p class=\"text-left dyk-video-title\">How to Make Passive Money with NFT? (Explained!)</p>\n <img src=https://www.bitdegree.org/"https://i.ytimg.com/vi/a179AuiN9Xw/hq720.jpg/"/n alt=\"How to Make Passive Money with NFT? (Explained!)\"\n title=\"How to Make Passive Money with NFT? (Explained!)\"\n class=\"p-0\">\n <img class=\"play-button\" data-target=\"#video-modal\"\n src=https://www.bitdegree.org/"https://assets.bitdegree.org/crypto/assets/video-button.png/"/n alt=\"How to Make Passive Money with NFT? (Explained!)\">\n </div>\n </div>\n </div>\n </div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https://www.youtube.com/c/CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"></i>\n </div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE</h4>\n <span>ON YOUTUBE</span>\n </div>\n </div>\n </a>\n </div>\n </div>\n </div>\n </div>\n</div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\" aria-labelledby=\"a179AuiN9Xw\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"></i>\n </button>\n <div id=\"iframe\"></div>\n </div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https://www.youtube.com/c/CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https://assets.bitdegree.org/crypto/assets/crypto-subscribe.jpg/" alt=\"Subscribe\">\n </div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE</span>\n </p>\n </div>\n </div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease</h4>\n <span>New explainer videos every week!</span>\n </div>\n </div>\n </div>\n </div>\n </a>\n </div>\n </div>\n</div>\n<h2>What are NFTs?</h2>\n<p>Let&rsquo;s start at the beginning - what is an &ldquo;NFT&rdquo;, in the first place?</p>\n<p>Now, here, we&rsquo;ll go through the concept of NFTs in a semi-quick manner. If you&rsquo;d like to understand the technology behind it in-depth, there is a separate, dedicated section on the topic of <strong><a href=https://www.bitdegree.org/"/crypto/learn/what-are-nfts/">NFTs - make sure to check it out!</p>\n<p>An &ldquo;NFT&rdquo; is a non-fungible token. This is a pretty fancy way of saying that it&rsquo;s something completely unique - something that can&rsquo;t be replaced with anything else.</p>\n<p>Many people think that NFTs are the <strong>little jpeg images</strong> that we see online - images of animated monkeys, cyberpunks, and other characters. Well, let me tell you - that&rsquo;s not the case.</p>\n<p>Instead, an NFT is a piece of completely unique code on the blockchain - code that references and points to that image, which, by itself, is stored on some server. By now, you've probably learned more about them in the \"Blockchain\" chapter. This is really important information that you&rsquo;ll require moving forward.</p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to make passive money with NFTs: What are NFTs?\" src=https://www.bitdegree.org/"https://assets.bitdegree.org/crypto/storage/media/how-to-make-passive-money-with-nft-1.o.jpg/" alt=\"How to make passive money with NFTs: What are NFTs?\" width=\"801\" height=\"393\" /></p>\n<p>A good example of some well-known NFTs is one that I&rsquo;ve mentioned at the beginning of this section - the Bored Apes. Better known as the Bored Ape Yacht Club, this is a collection of 10,000 different digital apes. When they were initially launched back in April 2021, each Ape NFT cost 0,08 ETH (in today&rsquo;s money, that would be a bit over $200). Today, <strong>a single Bored Ape NFT</strong> will cost you anywhere from $170,000!</p>\n<p>That&rsquo;s insane!</p>\n<p>NFTs do face a lot of criticisms, the most popular of which is the idea that pixelated images and poorly-drawn art isn&rsquo;t worth such amounts of money, and that it's simply a bubble that&rsquo;s going to burst. Be that as it may, one of the main reasons why NFTs have become as popular as they are is because of exactly that - the ability to earn a passive income, and other perks, simply by holding them!</p>\n<p style=\"text-align: center;\"><img title=\"How to make passive money with NFT: 10,000 Bored Apes.\" src=https://www.bitdegree.org/"https://assets.bitdegree.org/crypto/storage/media/how-to-make-passive-money-with-nft-2.o.jpg/" alt=\"How to make passive money with NFT: 10,000 Bored Apes.\" width=\"800\" height=\"402\" /></p>\n<p>We all have that one friend who slides back into our DMs every year or so, offering yet another &ldquo;business idea&rdquo;, and telling you how you can &ldquo;make tens of thousands of dollars without doing anything if you just listen to what he has to say&rdquo;. I hate to say it, but, in most cases, these offers turn out to be pyramid schemes!</p>\n<p>How are <strong>passive income NFTs</strong> different? Well, for starters, you won&rsquo;t really find many NFTs that would offer their holders millions of dollars of returns per day - that&rsquo;s simply not the case. Furthermore, as I&rsquo;ve already told you, NFTs are built on <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-blockchain/">blockchain technology. What this means is that anyone is able to check the code behind the NFT, and inspect its passive earning mechanics.</p>\n<p>Lastly, once again - NFTs are still a new thing! People are just now becoming aware of this technology, and all of the potential that it has. Naturally, with it being a new concept, the potential earnings are very inconsistent, as well! With time, however, the actually-viable passive income NFTs will flush out, and new ideas will come to fruition, as well!</p>\n<h2>Examples of How to Make a Passive Income with NFTs</h2>\n<p>Imagine that you&rsquo;re a game designer - you&rsquo;re creating an online game, where players will be able to pick certain characters, and battle each other.</p>\n<p>Now, you decide that there will be 100 different characters in the game. On top of that, before launching the game to the masses, you also decide to hold a public sale for the characters, in the form of NFTs - anyone can come in and purchase said characters <strong>as non-fungible tokens</strong>.</p>\n<p>Now, your in-game character NFTs have a special utility. Each time some player picks the character that you&rsquo;ve purchased within the game, you will get a small commission fee, in the form of, say, Ethereum coins, or game-related tokens.</p>\n<p>This way, all that a player needs to do is make the initial &ldquo;investment&rdquo; - in other words, purchase the actual NFT of the character. Then, they can simply sit back, and relax - the earnings will be periodically transferred to their <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/best-cryptocurrency-wallet/">cryptocurrency wallet</strong></a>!</p>\n<p>Naturally, those earnings are <strong>likely going to be small</strong>, but they will add up! This does actually motivate the owner of the NFT to promote the game to friends and other individuals, since the more people play, the more people will pick your character, and thus, the more passive income you will earn!</p>\n<p><img title=\"How to make passive money with NFTs: Examples of how to make a passive income with NFTs.\" src=https://www.bitdegree.org/"https://assets.bitdegree.org/crypto/storage/media/how-to-make-passive-money-with-nft-3.o.jpg/" alt=\"How to make passive money with NFTs: Examples of how to make a passive income with NFTs.\" width=\"801\" height=\"384\" /></p>\n<p>Another very popular example of passive income NFTs would have to do with your favorite video content creators - YouTubers!</p>\n<p>Chances are that you have your favorite YouTuber - maybe it&rsquo;s Pewdiepie? Or MKBHD?</p>\n<p>Well, imagine if you could support your favorite creator, by investing in them! Let&rsquo;s say, you believe that Pewdiepie&rsquo;s channel will keep on growing exponentially throughout the upcoming years. On top of that, let&rsquo;s say that Pewds decided to release a limited collection of NFTs related to his channel - <strong>1,000 different images</strong> representing his years and achievements on YouTube.</p>\n<p>Fans who purchase these NFTs will unlock a special feature - every month, you will receive a set portion of the YouTube revenue that Pewdiepie makes, as passive earnings of your own! This feature will be available forever, and for as long as you're the owner of the NFT.</p>\n<p>Now, obviously, NFTs like this would cost A LOT of money, to begin with. But that&rsquo;s exactly my point, too - this is why some NFTs are priced as high as they are! The market decides what each NFT is worth - whether it be because of its utility, rarity, or any other reason.</p>\n<p>As a final example, let&rsquo;s talk about <strong>music.</strong> Specifically, artists taking their songs, and creating NFTs out of them.</p>\n<p>This actually isn&rsquo;t a new phenomenon, in the first place. Artists like the Weekend and Grimes have been delving into the NFT space for some time now! However, it can be perfectly possible to make passive money with music NFTs, as well!</p>\n<p><img title=\"How to make passive money with NFTs: Examples of how to make a passive income with NFTs.\" src=https://www.bitdegree.org/"https://assets.bitdegree.org/crypto/storage/media/how-to-make-passive-money-with-nft-4.o.jpg/" alt=\"How to make passive money with NFTs: Examples of how to make a passive income with NFTs.\" width=\"801\" height=\"492\" /></p>\n<p>Imagine that you have a favorite artist. One day, you see that they&rsquo;ve released an NFT collection. On top of some awesome artwork and songs, the collection also includes <strong>special licensing</strong> - if you&rsquo;re one of the holders of said NFTs, the artist will pay out a portion of the revenue that their songs from that collection make per month, on a platform such as like Spotify.</p>\n<h2>Problems with Passive Income NFTs</h2>\n<p>With the few examples I&rsquo;ve given throughout this section, you could clearly see that NFTs can act both as a method of supporting your favorite artists, musicians, and brands, as well as a way to make some passive money, on the side.</p>\n<p>It&rsquo;s worth mentioning, however, that there are a few things to be on the lookout for, if you&rsquo;re thinking about going out and buying some passive income NFTs of your own.</p>\n<p>The biggest point here is that such NFTs are usually <strong>very costly</strong>. The more potential an NFT has, and the more well-known the person or brand behind its creation is, the more it&rsquo;s likely going to cost. If you want to find awesome and huge potential-possessing NFTs that wouldn&rsquo;t break your bank, you will need to spend a lot of time in this industry, and on the market, and really put your research skills to the test!</p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to make passive money with NFTs: Problems with passive income NFTs.\" src=https://www.bitdegree.org/"https://assets.bitdegree.org/crypto/storage/media/how-to-make-passive-money-with-nft-6.o.jpg/" alt=\"How to make passive money with NFTs: Problems with passive income NFTs.\" width=\"800\" height=\"605\" /></p>\n<p>Another thing to take note of are the Ethereum gas fees. Most non-fungible tokens are based on the Ethereum blockchain. This means that all of the transactions - NFT acquisition, royalty payments, and so on - happen on this same blockchain.</p>\n<p>The issue here is that Ethereum transactions tend to be rather costly. Depending on a few different factors, you could lose out on a lot of potential profits! Now, there&rsquo;s an update planned for Ethereum, called <strong>ETH 2.0</strong> - this update should cut the gas fees of Ethereum-based transactions exponentially!</p>\n<p>Wrapping things up, I hope that this section helped you to learn about how to make passive money with NFTs.</p>","preview_url":"https://www.bitdegree.org/crypto/learn/how-to-make-passive-money-with-nft","youtube_video":{"id":13,"channel_id":1,"sort":49,"video_title":"How to Make Passive Money with NFT? (Explained!)","description":"How to make passive money with NFTs?\n\nWhile many people associate NFTs with digital art and overpriced jpegs, the truth is that some non-fungible tokens could allow their owners to make a passive income. These are NFTs with a specific utility, and the ones that are priced the highest!\n\nHow do you find passive income NFTs, though? And are they really worth the hype - in other words, will such NFTs really allow you to make passive money on the side? These are some of the questions that I’ll answer in this video! On top of that, we’ll take a look at some examples of how such NFTs work, in the first place!\n\nDo you know of some awesome passive income NFTs? If so, make sure to share them in the comment down below!\n\nVideo Time Table:\n\n0:00 Introduction to How to Make Passive Money With NFTs\n0:54 What are NFTs?\n2:58 Passive Income NFTs: Holding\n3:34 Examples of How to Make Passive Money With NFTs\n6:38 Problems With Passive Income NFTs\n7:44 Wrap-up: How to Make Passive Money With NFTs?\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps://twitter.com/crypto_xplained\n\n#HowtoMakeMoneyWithNFT #PassiveIncomeNFT #HowtoInvestinNFT #HowtoSellNFT #HowtoSellNFTArt","video_id":"a179AuiN9Xw","duration":482,"view_count":8715,"thumbnail_url":"https://i.ytimg.com/vi/a179AuiN9Xw/hq720.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2022-02-28 16:03:31","created_at":"2022-03-01T00:01:07.000000Z","updated_at":"2023-05-21T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}},"featured_image":{"id":6524,"uuid":"b32da80c-c3a6-4042-8a35-032e843e93c2","public_url":"https://assets.bitdegree.org/crypto/storage/media/how-to-make-passive-money-with-nfts.o.jpg","path":"crypto/storage/media/how-to-make-passive-money-with-nfts.o.jpg","original_path":"crypto/storage/media/how-to-make-passive-money-with-nfts.jpg","name":"how-to-make-passive-money-with-nfts.o.jpg","original_name":"how-to-make-passive-money-with-nfts.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"109.46KB"}},"chapterList":[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/learn-blockchain.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/blockchain-101.jpg","rating":100,"sections":[{"slug":"what-is-blockchain","title":"What is the Blockchain?","featured_image_id":6412,"status":"published","chapter_id":1,"language":"en","order":1,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-blockchain","featured_image":{"id":6412,"uuid":"152ba579-ce8d-488a-9e06-bcd99e976b7d","public_url":"https://assets.bitdegree.org/crypto/storage/media/what-is-blockchain-626fbe085a0cd.o.jpg","path":"crypto/storage/media/what-is-blockchain-626fbe085a0cd.o.jpg","original_path":"crypto/storage/media/what-is-blockchain-626fbe085a0cd.jpg","name":"what-is-blockchain-626fbe085a0cd.o.jpg","original_name":"what-is-blockchain.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"93.86KB"},"youtube_video":null},{"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","featured_image_id":7205,"status":"published","chapter_id":1,"language":"en","order":2,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/decentralized-blockchain","featured_image":{"id":7205,"uuid":"c5d6f6a7-4914-4d6b-9fdd-e94dfb0bae82","public_url":"https://assets.bitdegree.org/crypto/storage/media/decentralized-blockchain-featured-image.o.jpg","path":"crypto/storage/media/decentralized-blockchain-featured-image.o.jpg","original_path":"crypto/storage/media/decentralized-blockchain-featured-image.jpg","name":"decentralized-blockchain-featured-image.o.jpg","original_name":"decentralized-blockchain-featured-image.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"136.00KB"},"youtube_video":null},{"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","featured_image_id":7397,"status":"published","chapter_id":1,"language":"en","order":3,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/blockchain-transaction","featured_image":{"id":7397,"uuid":"e60dff45-4c5d-4b44-a2c1-a27e49f700e7","public_url":"https://assets.bitdegree.org/crypto/storage/media/blockchain-transaction-featured-mage.o.jpg","path":"crypto/storage/media/blockchain-transaction-featured-mage.o.jpg","original_path":"crypto/storage/media/blockchain-transaction-featured-mage.jpg","name":"blockchain-transaction-featured-mage.o.jpg","original_name":"blockchain-transaction-featured-mage.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"85.83KB"},"youtube_video":null},{"slug":"crypto-fees","title":"The Different Types of Crypto Fees 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Terms","updated":false,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/crypto-101-glossary.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}],"currentChapter":"nfts","currentSection":"how-to-make-passive-money-with-nft","readingTime":7,"readingLevel":"medium"},"url":"/crypto/learn/how-to-make-passive-money-with-nft","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">

All Crypto From

Scratch!

Crypto 101 Handbook

Chapter 1: Blockchain

• 1.1

  What is the Blockchain?
  1.2

  Anonymous & Decentralized Blockchains: The Cornerstone of Crypto
  1.3

  What is a Blockchain Transaction in Crypto?
  1.4

  The Different Types of Crypto Fees Explained
  1.5

  The Key Notion Behind the Concept of Bridging in Crypto
  1.6

  Different Types of Blockchains: What to Look Out For?

Chapter 2: Cryptocurrencies

• 2.1

  What is a Cryptocurrency?
  2.2

  How Does Cryptocurrency Work?
  2.3

  Is Cryptocurrency a Good Investment? The Pros & Cons
  2.4

  Coin VS Token: How Do They Differ?
  2.5

  What are Stablecoins, Altcoins & Wrapped Coins?
  2.6

  Bitcoin: the Pioneer of the Crypto World
  2.7

  The Ultimate Blockchain for dApp Creation: Ethereum
  2.8

  What is Cardano and What is It Used For?
  2.9

  Shiba Inu: the Dogecoin Killer
  2.10

  Is Solana an Improved Version of Ethereum?
  2.11

  The Bridge Between Blockchains: Polkadot
  2.12

  Polygon: the Essential Scaling Solution for Ethereum
  2.13

  The Practical Use of Crypto

Chapter 3: Crypto Exchanges

• 3.1

  How do Cryptocurrency Exchanges Work?
  3.2

  DEX VS CEX: Two Sides of the Crypto Exchange Industry
  3.3

  Crypto Day Trading: The Difference Between Buying, Trading, and Swapping
  3.4

  KYC & AML: The Key to Complying With Legal Industry Standards
  3.5

  From Fiat to Crypto: How to Buy Crypto for the First Time
  3.6

  Taking Profits: Turning Crypto Into Fiat
  3.7

  You’ve Got Crypto: What Can You Do With It?

Chapter 4: Crypto Wallets

• 4.1

  What is a Crypto Wallet?
  4.2

  Hot Wallet VS Cold Wallet: Which One to Pick?
  4.3

  What are Non-Custodial Crypto Wallets?
  4.4

  Metamask: The Leading Non-Custodial Wallet
  4.5

  The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?

Chapter 5: NFTs

• 5.1

  What are Non-Fungible Tokens (NFTs)?
  5.2

  NFT Trading: The Ins and Outs
  5.3

  Tips and Tricks of Choosing the Right NFTs
  5.4

  How to Store NFTs: Best Practices
  5.5

  How to Create Your Own NFTs?
  5.6

  Making Passive Money with NFTs

Chapter 6: dApps & Defi

• 6.1

  What is Decentralized Finance (DeFi)?
  6.2

  DeFi 2.0: The New Version of Decentralized Finance
  6.3

  What Are dApps and How Do They Work?
  6.4

  Picking the Right dApps: Dos and Don'ts
  6.5

  Web 3.0: The Future of the Internet
  6.6

  What is the Core Purpose of Smart Contracts?
  6.7

  The Notion of a Decentralized Autonomous Ogranization (DAO)
  6.8

  What is the Goal of Staking Crypto Assets?
  6.9

  What is a Liquidity Pool and How Does It Work?
  6.10

  Automated Market Maker: the Cornerstone of the Decentralized Crypto Exchange Industry
  6.11

  The Main Yield Farming Techniques
  6.12

  Crypto Oracles: The Link Between Blockchain and Outside World Data
  6.13

  The Peculiarities of Decentralized Crypto Gambling
  6.14

  Metaverse: A New Perception of Reality

Chapter 7: Trading & Investing

• 7.1

  Where Can You Trade Cryptocurrencies?
  7.2

  Investing in Crypto: What Investing Options Do You Have?
  7.3

  ICO vs IDO vs IEO: Which One is the One?
  7.4

  What are Crypto Airdrops and How to Get Them?
  7.5

  How to Get Free Crypto Assets?
  7.6

  What is Crypto Arbitrage: The Main Principles
  7.7

  What is FUD: How to Use It to Your Advantage While Investing in Crypto?
  7.8

  Investing in Cryptocurrency: How to Manage Your Risks?
  7.9

  What is a Rug Pull in Crypto?
  7.10

  How to Spot and Avoid Rug Pulls?
  7.11

  The Key Legal Techniques of Avoiding Crypto Taxes

Chapter 8: Crypto Analysis

• 8.1

  Bearish and Bullish Markets: Do They Matter?
  8.2

  5 Best Crypto Technical Analysis Indicators You Must Know About
  8.3

  Technical Analysis: What are Candlesticks, Trendlines, and Patterns?
  8.4

  Crypto Tracking: How to Track Your Favorite Coins & Tokens?
  8.5

  Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy

Chapter 9: Mining

coming soon

Chapter 10: Crypto Terms

• 10.1

  All Crypto Terms

# ABCDEFGHIJKLMNOPQRSTUVWXYZ

Handbook Cover Page

Chapter 5: NFTs

Making Passive Money with NFTs

Did you know that when the Bored Ape Yacht Club initially launched, each Ape NFT cost 0,08 ETH (a bit over $200)?

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In this section, I will tell you about how to make passive money with NFTs!

Imagine yourself in an ice cream shop. You walk in, exchange pleasantries with the shop owner, and order some chocolate ice cream. Sitting at the nearby table, you check your portfolio of Bored Ape NFTs - you know that you’ve already made enough money to pay for the ice cream, during the time that it takes to make it.

Sounds cool? Well, this is actually very possible with passive income NFTs!

In this section, I’ll tell you all about how to make passive money with NFTs! We’ll start off with a quick introduction to NFTs, in general, and then discuss some of the potential ways how you could make a passive income, simply by holding them!

Let’s get to it!

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What are NFTs?

Let’s start at the beginning - what is an “NFT”, in the first place?

Now, here, we’ll go through the concept of NFTs in a semi-quick manner. If you’d like to understand the technology behind it in-depth, there is a separate, dedicated section on the topic of NFTs - make sure to check it out!

An “NFT” is a non-fungible token. This is a pretty fancy way of saying that it’s something completely unique - something that can’t be replaced with anything else.

Many people think that NFTs are the little jpeg images that we see online - images of animated monkeys, cyberpunks, and other characters. Well, let me tell you - that’s not the case.

Instead, an NFT is a piece of completely unique code on the blockchain - code that references and points to that image, which, by itself, is stored on some server. By now, you've probably learned more about them in the "Blockchain" chapter. This is really important information that you’ll require moving forward.

A good example of some well-known NFTs is one that I’ve mentioned at the beginning of this section - the Bored Apes. Better known as the Bored Ape Yacht Club, this is a collection of 10,000 different digital apes. When they were initially launched back in April 2021, each Ape NFT cost 0,08 ETH (in today’s money, that would be a bit over $200). Today, a single Bored Ape NFT will cost you anywhere from $170,000!

That’s insane!

NFTs do face a lot of criticisms, the most popular of which is the idea that pixelated images and poorly-drawn art isn’t worth such amounts of money, and that it's simply a bubble that’s going to burst. Be that as it may, one of the main reasons why NFTs have become as popular as they are is because of exactly that - the ability to earn a passive income, and other perks, simply by holding them!

We all have that one friend who slides back into our DMs every year or so, offering yet another “business idea”, and telling you how you can “make tens of thousands of dollars without doing anything if you just listen to what he has to say”. I hate to say it, but, in most cases, these offers turn out to be pyramid schemes!

How are passive income NFTs different? Well, for starters, you won’t really find many NFTs that would offer their holders millions of dollars of returns per day - that’s simply not the case. Furthermore, as I’ve already told you, NFTs are built on blockchain technology. What this means is that anyone is able to check the code behind the NFT, and inspect its passive earning mechanics.

Lastly, once again - NFTs are still a new thing! People are just now becoming aware of this technology, and all of the potential that it has. Naturally, with it being a new concept, the potential earnings are very inconsistent, as well! With time, however, the actually-viable passive income NFTs will flush out, and new ideas will come to fruition, as well!

Examples of How to Make a Passive Income with NFTs

Imagine that you’re a game designer - you’re creating an online game, where players will be able to pick certain characters, and battle each other.

Now, you decide that there will be 100 different characters in the game. On top of that, before launching the game to the masses, you also decide to hold a public sale for the characters, in the form of NFTs - anyone can come in and purchase said characters as non-fungible tokens.

Now, your in-game character NFTs have a special utility. Each time some player picks the character that you’ve purchased within the game, you will get a small commission fee, in the form of, say, Ethereum coins, or game-related tokens.

This way, all that a player needs to do is make the initial “investment” - in other words, purchase the actual NFT of the character. Then, they can simply sit back, and relax - the earnings will be periodically transferred to their cryptocurrency wallet!

Naturally, those earnings are likely going to be small, but they will add up! This does actually motivate the owner of the NFT to promote the game to friends and other individuals, since the more people play, the more people will pick your character, and thus, the more passive income you will earn!

Another very popular example of passive income NFTs would have to do with your favorite video content creators - YouTubers!

Chances are that you have your favorite YouTuber - maybe it’s Pewdiepie? Or MKBHD?

Well, imagine if you could support your favorite creator, by investing in them! Let’s say, you believe that Pewdiepie’s channel will keep on growing exponentially throughout the upcoming years. On top of that, let’s say that Pewds decided to release a limited collection of NFTs related to his channel - 1,000 different images representing his years and achievements on YouTube.

Fans who purchase these NFTs will unlock a special feature - every month, you will receive a set portion of the YouTube revenue that Pewdiepie makes, as passive earnings of your own! This feature will be available forever, and for as long as you're the owner of the NFT.

Now, obviously, NFTs like this would cost A LOT of money, to begin with. But that’s exactly my point, too - this is why some NFTs are priced as high as they are! The market decides what each NFT is worth - whether it be because of its utility, rarity, or any other reason.

As a final example, let’s talk about music. Specifically, artists taking their songs, and creating NFTs out of them.

This actually isn’t a new phenomenon, in the first place. Artists like the Weekend and Grimes have been delving into the NFT space for some time now! However, it can be perfectly possible to make passive money with music NFTs, as well!

Imagine that you have a favorite artist. One day, you see that they’ve released an NFT collection. On top of some awesome artwork and songs, the collection also includes special licensing - if you’re one of the holders of said NFTs, the artist will pay out a portion of the revenue that their songs from that collection make per month, on a platform such as like Spotify.

Problems with Passive Income NFTs

With the few examples I’ve given throughout this section, you could clearly see that NFTs can act both as a method of supporting your favorite artists, musicians, and brands, as well as a way to make some passive money, on the side.

It’s worth mentioning, however, that there are a few things to be on the lookout for, if you’re thinking about going out and buying some passive income NFTs of your own.

The biggest point here is that such NFTs are usually very costly. The more potential an NFT has, and the more well-known the person or brand behind its creation is, the more it’s likely going to cost. If you want to find awesome and huge potential-possessing NFTs that wouldn’t break your bank, you will need to spend a lot of time in this industry, and on the market, and really put your research skills to the test!

Another thing to take note of are the Ethereum gas fees. Most non-fungible tokens are based on the Ethereum blockchain. This means that all of the transactions - NFT acquisition, royalty payments, and so on - happen on this same blockchain.

The issue here is that Ethereum transactions tend to be rather costly. Depending on a few different factors, you could lose out on a lot of potential profits! Now, there’s an update planned for Ethereum, called ETH 2.0 - this update should cut the gas fees of Ethereum-based transactions exponentially!

Wrapping things up, I hope that this section helped you to learn about how to make passive money with NFTs.

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