How to Earn Passive Income from NFTs: 4 Ways That Already Work
You probably aren’t yet aware of this but non-fungible tokens (NFTs) represent an untapped passive income-generating opportunity.
Read on to learn how you can earn passive income with NFTs using a variety of methods that actually work.
The convergence of NFT technology and decentralized finance (DeFi) protocols has led to the potential for staking NFTs.
Staking is commonly used in proof-of-stake (PoS) protocols where users commit their tokens to secure a network and validate transactions. But there are also other forms of staking, such as locking away cryptoassets in a DeFi protocol smart contract to generate yield in return.
Similar to staking cryptoassets, staking NFTs allows you to generate passive income in the form of staking rewards while retaining ownership of your tokens.
Staking NFTs can be a good strategy if you are planning to hold them long-term since you can’t trade your staked NFTs. NFT staking platforms often study the rarity of the NFT and calculate the APY (annual percentage yield). The higher the rarity, the higher the APY, and the higher the staking rewards.
Currently, there are several platforms that support NFT staking, including Kira Network, NFTX, Axie Infinity, and more.
Several GameFi platforms allow you to earn passive income from your NFTs by renting out your digital collectibles to NFT gamers. This is a new trend in the blockchain gaming space as the utility derived from game NFTs offers attractive income opportunities. As a player, you can rent out your NFTs to improve your overall gaming experience.
You can rent out items such as character skins, innovative weapons, and unique tools that can unlock new in-game features. For example, some card trading games will allow you to rent out NFT cards to
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