These days, non-fungible tokens (NFTs) appear to be everywhere. Digital Assets ranging from art and music are selling like hotcakes, with some fetching millions of dollars. The appeal of getting free NFTs is strong.
But are NFTs worth the money or the hype? While some analysts believe they are about to burst, others feel that free NFTs are here to stay and will forever revolutionize investment.
Various distribution strategies have emerged with the booming market and use of NFTs. Some propose free NFT minting, while others offer free NFT distribution as a reward.
While free NFTs are possible, it is also important to seize the best opportunities while reducing the danger of falling victim to a scam.
Let’s look at the concept of NFTs and 5 ways you can get free NFTs.
What is NFT?
NFT is a digital asset that signifies physical assets, including art, music, in-game objects, and videos. NFTs are becoming a popular method to buy and sell digital artwork.
- NFTs are purchased and traded online, often using cryptocurrency, real money, or other assets like non-fungible tokens.
- NFTs are typically encoded using the same underlying software as many cryptos.
NFTs are not interchangeable, and each of them represents unique assets owned by a specific person. On the other hand, fungible tokens are interchangeable that can be divided into smaller units to form the same value.
- A $100 bill is fungible because you can exchange it with smaller notes like five 20$s or two $50s.
- A famous painting like The Last Supper is non-fungible because it can’t be generated in bulk. Even if it is a copy of the painting, the value of the painting is different.
How does NFT work?
NFTs reside on a blockchain, a public distributed ledger that records transactions. You’ve undoubtedly heard of blockchain as the fundamental technology that allows cryptocurrencies to exist.
NFTs are commonly held on the Ethereum blockchain, though they can also be held on other blockchains.
An NFT is “minted” from digital objects that represent both tangible and intangible elements, like
- Graffiti art
- Videos and sports highlights
- Video game skins and virtual avatars
- Designer sneakers
Even tweets are also considered. Jack Dorsey, the former CEO of Twitter, sold his first tweet as an NFT for more than $2.9 million.
NFTs are basically digital versions of tangible collector’s artifacts. Instead of a physical oil painting hanging on the wall, the customer receives a digital file. They will also have sole ownership rights.
Only one NFT owner can exist at any given moment, and using blockchain technology makes it simple to authenticate ownership and transfer tokens between owners.
The creator can additionally store special information in the metadata of an NFT. For example, artists can sign their work by inserting their signature in the file.
Can you get free NFTs?
Yes, there are various ways to get free NFTs. This includes participating in NFT games that allow you to play and win money to free NFT giveaways to name a couple.
Here are 5 ways you can get free NFTs.
1. Free NFTs via play-to-earn games
One of the easiest ways to get free NFTs is to play leading play-to-earn NFT games. Signing up for an NFT-based computer game is another way to earn free NFTs.
These games have been created particularly to stimulate the trading of NFTs.
In some ways, this is the purest application of NFTs. This is because the goods you collect have a direct use within the game. When done correctly, this supports the growth and flourishing of the real economy.
This is also a hot market. Spells of Genesis and other games that work in this manner include Sorare and FootballCoin.
At the start of the game, users can gather NFTs and obtain several free cards. They can obtain cryptocurrency by using these cards.
The WAX network has recently received much attention for its NFT games. Free NFTs can be earned or purchased in games like Alien Worlds and Farmers World. These NFTs enable them to perform better in the game and earn their native token.
To make use of this, you must first create a WAX account. Here you will keep your NFTs. This will take a few seconds.
It’s also worth mentioning that many of these WAX games come with free NFT drops. This is especially true for newly configured games. The makers hope that they will pique the public’s interest in their crypto-game by doing so.
2. Free NFT giveaways
NFT projects frequently incentivize their users’ participation with free digital things. Many discord communities in the NFT arena, for example, provide free NFTs to their members. Twitter and Telegram are also excellent sources of information for such prizes.
CryptomonKeys Discord provides NFTs to its members for free. Begin by writing a well-thought-out opening post.
You can also earn incentives for participating actively in communities like Alien Worlds. This might be interpreted as an attempt to keep crypto users engaged in the game because of user participation; many games thrive.
They promote the sale and distribution of their one-of-a-kind digital item. This will eventually raise the game’s profile and improve the value of its coin.
Some companies announce giveaways on Twitter that allow you to obtain free NFTs. Make a point of targeting hashtags that contain the word “NFT.” These will frequently take you to active free NFT giveaways.
Potential winners are typically urged to comment, share, or contribute linked to spreading the news about the project.
These NFTs have a huge potential to be valuable. Let us not forget how the Cryptopunks project began. This is the most valuable NFT collection at the moment.
However, in 2017, they were distributed for free to everyone with an ETH wallet. The NFTs gained traction by word of mouth. Its committed community contributed to its eventual success.
3. NFT airdrops
Traditional businesses typically raise funds by selling stock options to the general public. Organizations operating on Web3, the blockchain-integrated internet, take a similar approach by issuing a token that can be purchased and sold on exchanges.
Airdrops are occasionally incorporated in token launches. Crypto corporations view them as client acquisition charges.
Although airdrops are not uncommon, they are frequently spaced across several months. Its purpose is to encourage customers to keep their tokens and buy more. Some tokens become more valuable over time, while others fade into obscurity.
For example, OpenDAO gave out free SOS tokens to everyone who sold the project’s NFTs. Some users were successful in obtaining tokens worth thousands of dollars.
Celebrities are also involved in some ventures. Celebrities such as Paris Hilton and Jimmy Fallon have joined the Bored Ape Yacht Club. In 2022, the two stars took part in a televised giveaway of free NFTs from the collection.
Following the huge success of the Bored Ape Yacht Club, other projects have attempted to replicate its formula for success. This indicates that it is not too late to benefit from NFT freebies.
4. NFT breeding
Some projects push consumers to buy more NFTs to generate more valuable digital assets. This is comparable to traditional pet games. Breeding is a term used by projects such as CryptoKitties and Axie Infinity. Both projects are quite well-liked.
Users in CryptoKitties will attempt to use two of the NFTs representing the kittens to produce a third NFT listed on the Ethereum network. This is how the system works.
When you buy a CryptoKitty, it is time for it to breed and create the rarest breed of cats. CryptoKitties need to be owned by the same person or offered to another user for breeding. A person who owns two unrelated CryptoKitties can utilize one as a sire and the other as a matron.
Axie Infinity breeding is a way of producing and hatching eggs to create new Axies. Its major goal is to generate Axies with desirable features, such as the card’s class.
Players can breed two Axies to produce new progeny. Users are thus encouraged to contribute more to the game’s environment. The end goal is to amass a valuable collection for the future.
5. Mint yourself for free NFT
This step was performed mostly due to the high gas prices previously associated with minting NFTs. The petrol taxes had the effect of discouraging artists who were considering selling their work.
Users can use Polygon’s layer two solutions to mint, purchase, or transfer ownership of NFTs on the Polygon blockchain for free. Plus, when using the Polygon blockchain to mint your products, you may still sell them at ETH prices.
To mint anything on OpenSea, you must connect your wallet and create a collection. Your NFTs are organized into collections. You can now use MATIC to make and sell NFTs in OpenSea. It’s a much more realistic option.
After filling up your details on the collections page, choose Polygon as your favorite network. You must next select the cryptocurrency you want to pay for the NFT. Once you’ve chosen a payout wallet address, you should be good to go.
Keep in mind that having a supportive community will boost your chances of selling an NFT.
Should you invest in NFTs?
It all depends on you because the future of NFTs is unpredictable, and there isn’t enough historical data to gauge their performance.
Considering that NFTs are so new, it may be worthwhile to invest in small amounts to test them out for the time being.
In a nutshell, investing in NFTs is essentially a personal decision. If you have some additional cash, it’s worth considering, especially if the piece has personal significance to you.
However, keep in mind that the worth of an NFT is entirely decided by what someone else is ready to pay for it.
In a sense, demand will drive the price instead of fundamental, technical, or economic variables, which frequently influence stock prices and, at best, serve as the basis for investor demand.
This means that an NFT may be worth less than you paid for it. If no one wants it, you probably might not be able to resell it.
NFTs, like stocks, are liable to capital gains taxes when sold for a profit. But, because they are considered collectibles, they may not enjoy the favorable long-term capital gains rates that stocks do. Although the IRS has not yet identified what NFTs are classified for tax reasons, they can be taxed at a higher collectibles tax rate.
Remember that the cryptocurrencies used to purchase the NFT can be taxed if their value has increased since you bought them, so it’s best to consult with a tax specialist before adding NFTs to your portfolio.
However, it is advisable that you treat NFTs in the same way you would any other investment:
- Conduct your research.
- Recognize the risks (including the possibility of losing all of your investment money).
- Continue with caution if you decide to leap.
How to buy NFTs?
If you want to build your NFT collection, you’ll need the following items:
- To begin, you must acquire a digital wallet to store NFTs and cryptocurrencies.
- You may need to purchase some cryptocurrency, such as Ether, based on the currencies allowed by your NFT merchant.
- You can now buy cryptocurrency with a credit card on Coinbase, Kraken, eToro, PayPal, and Robinhood.
- You can then transfer it from the exchange to your preferred wallet.
As you analyze your alternatives, keep the fees in mind. Most exchanges charge a fee, at least a portion of your transaction when you acquire cryptocurrency.
If you want to dip your toes in the NFT market, then getting free NFTs is a great place to start. However, remember that many scammers will try to make things challenging for you.
First, it will only help if you ignore any bright deals and follow authoritative accounts on social media and news from significant websites to get ahead of most people struggling to get free NFTs.