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Making Money With NFTs In Nigeria: How does it work? 

For the past 15 years, cryptocurrencies and blockchain have been a major source of income for people all over the world; Nigeria included. Take for instance someone who bought 1 BTC in 2013 when it cost just about N300,000. Selling that 1 BTC today, in 2022, would mean an N16 million profit as 1 BTC sells for around N16,300,000. 

2021 saw the advent of NFTs and in 2022, they’re so much of a big deal all over the internet. Many Nigerian artists are introducing NFTs in their works and we see them in posts on social media all the time. In truth, much of the rave is FOMO – fear of missing out. Most of the people who missed out on BTC are afraid of making the same mistake with NFTs, should they become big as cryptocurrencies. 

Can NFTs become as valuable as cryptocurrencies in the digital space? Can you make money with NFTs? How do they even work? You can find answers in this article as we discuss making money with NFTs in Nigeria. 

What are NFTs?

A non-fungible token (NFT) is a unique and non-transferable unit of data kept on a digital ledger using blockchain technology to create a proof of ownership. 

For each NFT, the same or similar technology used to prove ownership of cryptocurrencies like bitcoin is used. However, unlike bitcoin, each NFT is unique and cannot be swapped for another of the same type; in other words, only one NFT of a particular NFT can exist. 

The file contains extra data that raises it beyond currency and is usable in almost any condition. Hence, NFTs have become collectible digital assets, similar to tangible paintings. 

An NFT can be used to identify any easily copied digital file. While most NFTs are generated from trippy futuristic motion artworks, you can create NFTs of photography, art, audio, or video source. NFTs of tweets and memes exist. 

Practically any unique digitally recorded item of value (or NFT) can be made. They’re similar to other collector’s items, such as paintings or antique action figures, except that you’re paying for a file and proof that you and you alone hold the original copy.

How do NFTs work? 

NFTs, like cryptocurrencies, are traded on exclusive websites. A popular NFT market is OpenSea. A sale does not always imply the transfer of the token’s object. Famous paintings, for example, have been marketed as NFTs without the artwork. 

What changes hands is a blockchain-based ownership certificate for the NFT The certificate must be stored in a digital wallet of some sort. To buy an NFT, the wallet must have enough of the required cryptocurrency. 

Note that cryptocurrencies and non-fungible tokens are different. Even though they are both built on the same blockchain, the variations between them can shed light on how NFTs work. 

The main difference stems from the fungibility of cryptocurrencies. For example, you can trade one Bitcoin for another. An NFT, on the other hand, does not permit this. One digital asset is linked to one non-fungible token, which cannot be replaced.

How to get NFTs? 

Getting NFTs in Nigeria isn’t difficult. As mentioned earlier, these tokens are traded on special marketplaces. So, you basically need to visit a website where NFTs are sold, create an account, and then buy your NFT. Below are some popular websites where NFTs are sold: 

  • OpenSea
  • SuperRare
  • Nifty Gateway
  • BakerySwap
  • Axie Marketplace
  • Rarible
  • NFT ShowRoom
  • Foundation
  • VIV3

Of all, OpenSea is the most popular. Using it as a reference, here are steps on how to buy NFTs: 

  • Buy Ethereum 

Because most NFTs are Ethereum-based, most NFT marketplaces like OpenSea only accept ETH tokens as payment. If you already have a cryptocurrency exchange account, you can buy Ethereum and send it to your MetaMask wallet. You can use Coinbase or eToro to open a crypto exchange account. 

  • Synchronize MetaMask with OpenSea

Many online stores sell NFTs. Depending on the marketplace, you can buy various sorts of art or collectibles. Many of these sites have secondary markets using NFTs, but each platform works differently. Since we’re using OpenSea, simply link MetaMask with your OpenSea account using the Chrome extension or mobile app.  

  • Buy the NFT 

After funding your account, buying an NFT is simple. Most marketplaces are auction-style, so you’ll need to place a bid to buy NFT. For NFTs with multiple prints, certain marketplaces operate more like an exchange.

Read Also: Most Googled Song in Nigeria 2021

Making Money With NFTs

Here’s the real deal. How do you make money with NFTs? Well, it depends on what you have to offer. As a creator, you can publish your works as NFTs and sell exclusive rights to buyers. This is what most Nigerian artists are doing. You can also buy and sell NFTs; like normal trading. 

Here are all the best ways you can make money with NFTs in Nigeria: 

  • Sell your own NFT 

If you’re a creator with a huge following, this is the best option. Anything digital can be sold as NFTs. Original digital art, music, memes, videos, and audio clips. So go. Your imagination is the only limit. 

  • Buy and sell NFTs 

NFTs can be bought and sold for a profit. However, not all NFTs are equal. Some are worth millions, while others are worthless. As an NFT trader, you must do your research to identify only valuable NFTs. 

  • Staking 

Staking is the practice of preserving digital assets as ‘stakes’ and assigning them to those willing to maintain them. In return, you get a piece of the pie. On some websites, you can stake your NFTs over time and earn rewards. 

  • Investing 

Investing in startups is another option to make money using non-fungible tokens. NFTs have shown to be more than a passing crypto trend. They may transform the world by changing industries. It would be amazing to invest in NFT startups as they embark on a revolutionary future.

  • Gaming

In-game items can be bought and traded in blockchain-based games. Recently, more games have cheaper NFTs. Some even give away collectibles for free to the first few gamers. You can then sell these NFTs and make money. 

Bottom Line 

In the end, NFTs could change how digital files are owned, managed, and transferred. However, when it comes to making money, it’s rather speculative. An NFT is only worth thousands or millions if people say and believe they are.