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Navigating through the world of NFTs on Opensea can be both exciting and beneficial (money-wise) for creators and collectors. It is in fact, an open door for exciting opportunities! In this article, we will dive into how to make money on Opensea. The largest NFT marketplace, to generate income through smart investments. From minting original digital art, to flipping, to staking, to understanding the market trends, we’ll cover essential tips to help you make profits in this ever-evolving space.

If you aren’t familiar with some specific words or terminology you can refer to our glossary. 

Making money on Opensea involves several strategies that can cater to different levels of investment and involvement. Here’s a rundown of some methods:

• Create and Sell your NFTs
• NFT Flipping
• Earning Royalties
• NFT Staking
• NFT Gaming
• Participate in Virtual Real Estate
• Build and Monetize a Community

Create and Sell your NFTs

Opensea offers two options for creators in their ‘create’ section, you can either:

• Drop a collection (Launch your NFT collection)
• Mint an NFT (Create a collection and launch it)

If you don’t know where to start, do not hesitate to refer to their ‘learn’ section where you will find all the details you need such as:

• How to create an NFT
• How to mint an NFT
• How to sell an NFT
• And more

With their help and learning center, you will be able to start creating your NFTs on the right foot. Once created, you will be guided to follow the required steps to sell your NFTs.

You also have the possibility to design digital collectibles or virtual goods that can be used in games or as part of a digital collection.

NFT Flipping

In order to flip NFTs (buying and reselling NFTs), you should look for low-priced assets or for emerging artists and collections that have lots of potential. Purchase these NFTs and resell them at a higher price as their value increases. You also have the option to participate in drops or launches where you will be able to acquire assets at lower prices. Getting in early on can allow you to earn profits as demand increases. With the large variety of NFTs available on the platform and the different networks, you will have plenty of opportunities to make a profit by flipping NFTs.

Earning Royalties

If you’re an NFT creator, you can set and earn royalties on secondary sales. This means that when your NFT will change hands on the secondary market, you will earn a percentage of the sale price. This will then generate a continuous stream of income especially if the asset becomes highly popular.

NFT Staking

Although Opensea does not offer NFT staking at present, you still have the possibility to stake (lock) your assets on other platforms for a set period to earn rewards or passive income. This approach will not only provide financial incentives but also add value to the NFT ecosystem. You will then be able to sell your assets on Opensea.

NFT Gaming

There are different types of games in the space where you can either earn tokens or NFTs. Some are based on the online gaming space and others will give you access to the metaverse.

Your NFT may be the asset you will play with or an asset that will need to be combined with another within the game to give you access to it. You can earn an asset while playing and then resell that asset on the platform. While some NFTs will give you access to certain games, other games will be free and allow you to earn rewards, these are play-to-earn games.

Opensea has a rich gaming section where you can browse trending games and more. There are different categories for you to choose:

• Action Games
• 3D Games
• Virtual Worlds
• Shooter Games
• Adventure Games
• Sports Games
• Strategy Games

Participate in Virtual Real Estate

You can invest in NFTs that confer ownership of virtual real estate, providing the option to either sell or lease these assets. In order to see your options, browse the virtual games section on Opensea to discover what it has to offer.

Some other platforms like Decentraland (MANA) and The Sandbox (SAND) also offer virtual lands and assets as NFTs in the Metaverse. On top of buying and renting these properties, developing them can also yield returns.

Build and Monetize a Community

By fostering a sense of belonging, shared purpose, and mutual support, community builders in the NFT space can significantly enhance the value of their projects and generate substantial returns. Here are a few benefits of building and monetizing an NFT community:

• Increased demand and value (A strong, engaged community can drive up the demand for an NFT collection. This will increase demand and lead to higher resale values.)
• Network effect (As the community grows it creates a network effect. Which will attract new members.)
• Collaborations and partnerships (A vibrant community can attract collaborations and partnerships with other artists, brands, or platforms, opening up new revenue streams and opportunities.)
• Access and exclusivity (Communities can be offered exclusive access to events, services, or additional NFT drops which can add value to the NFTs.)
• And others

Tips for Success

To have all your chances of succeeding in the space, do some research. It is important to understand the market, the trends, and the specific niches within the NFT ecosystem. Networking is also another big step. Engage with the community through social media, forums (like Reddit), Telegram, Discord servers, and other platforms. Keep the fees in mind, as they can sometimes affect your profitability. Finally, stay informed, the NFT space is highly volatile and therefore subject to rapid changes. Stay up to date with news, trends, and emerging technologies in the blockchain and NFT space.

NFTs and Taxes

Opensea has a ‘taxes’ section that you can consult. Having partnered with CoinTracker (a crypto portfolio assistant to help you with taxes), new users can get 15% off as a welcome offer. Although they do give you the tools to navigate through taxes thanks to their partnership, they clearly state that you are the one responsible for doing your taxes.

Written by
Siana Marcellus
Educator