2. Can money be made from digital collectibles?

If you have a particularly rare or desirable collectible, potentially, yes.

Generally, collectibles are categorized. Some of them are quite common while others have distinctive attributes which make them rare — or even ‘legendary.’

Some platforms have a price escalation feature. Let’s say you paid 1 ETH for a coveted collectible. Here, someone could pay 2 ETH and buy it off you without your consent. You would end up receiving most of the profits, with the platform taking a fee. The next person would pay 4 ETH, the person after 8 ETH, and so on. After the collectible’s value hits a certain amount — say 100 ETH, for example, the price may rise by 20 percent instead of doubling.

As you can see, there is the potential to make money. However, there’s a tricky dilemma to solve first. Often, the rarest collectibles go to those who join a platform early, as there are fewer people to compete with. But unless the platform becomes popular and gains other users who would be interested in buying your collectibles, you run the risk of investing money in tokens that nobody wants. Because of this, it’s worth doing your due diligence before getting involved.