What is NFT staking and how to earn income from NFTs?

We all know about crypto staking whereby you generate return on your investment. Nowadays you can also make money by staking on your Unavailable tokens (NFTs! By staking your Unavailable tokens (NFTs) on NFT staking platforms, you can earn more profit on your investment. NFTs have become even more attractive due to this development.

More and more people are looking for new ways to make money without having to work for it. Passive income used to be something the rich could get through the bank because the interest rates on savings accounts were quite high. Nowadays, you hardly get any interest on your money in the bank; In some cases, you even have to pay your savings! Due to the relatively high rewards for staking cryptocurrencies and NFTs, a new age alternative has been found.

Related: NFT Marketplace: How to Buy and Sell Unusable Tokens

What is NFT staking?

Staking your NFT is a way to put your unique token to work on the blockchain. Often NFTs are associated with digital images, such as the Bored Ape Yacht Club collection, but they can be all sorts of objects, from digital art to video files to in-game items. NFT staking means you attach your unusable tokens to a platform or protocol. In exchange for this action, you will receive a staking reward. This way, you can earn more while still being the owner of the NFT.

You can compare this staking with decentralized finance (DeFi) profit farming, where cryptocurrencies are lent or deployed to liquidity providers to earn rewards through interest or spending. transaction fees borne by others. This way of earning interest is similar to the way of earning interest through a bank but in this case, there is no middleman. NFT staking belongs to the world of decentralized finance while the form of banking is centralized.

How does NFT staking work?

NFT staking works like crypto staking because NFT is a tokenized asset. Also, for NFTs, not every nonfungible token can be staked, as this is not possible for every token. Since NFTs are tokenized assets, you can deploy them on NFT staking platforms where you can keep them safe. This is possible through a smart contract on the appropriate blockchain protocol.

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Although NFT staking is a relatively new concept, many NFT holders are excited about this development. That’s because nonfungible tokens are unique, making holders reluctant to sell. This is the big difference with crypto, where you can easily buy and sell crypto. To staking NFT, you need a crypto wallet, which must match the NFT in question.

First, check if your favorite wallet matches the NFT blockchain. You then need to connect your wallet to the staking platform to be able to send your NFT to the platform. This action can be compared to placing your money. Both can be done by going to the staking section of the platform.

NFT staking bonus

The type of staking rewards NFT holders can receive for implementing their NFT depends on the platform and type of NFT. Most NFT staking platforms offer recurring rewards, usually paid out on a daily or weekly basis. Usually, these rewards are paid with the platform’s utility tokens, but there are exceptions. Regardless of the token used to stake the reward, you can trade staking reward tokens and can convert them into other cryptocurrencies or fiat money.

In addition, there are also staking platforms that have decentralized autonomous organizations (DAOs). Here, NFT holders can lock their assets into a DAO pool, also known as an NFT staking pool, allowing them to participate in governance tasks on the platform. This usually includes voting rights when proposals are made. It is also possible to make your own recommendations, but this varies by DAO.

Related: Learn about staking pools: Pros and cons of crypto staking

Since a large portion of NFT in the NFT market belongs to various blockchain games, there are also various betting opportunities in games for money such as Axie Infinity (AXS), The Sandbox (SAND) and Splinterlands (SPS). In the game for money, you can earn not only crypto, but also NFT. This makes it possible to earn free NFTs and then bet them!

How to earn NFT staking passive income?

If you have NFTs in your crypto wallet, you can use them to earn passive income. NFT staking is the newest way to generate passive income with blockchain technology. With any such source of income, you must invest upfront. While this can be in money or time, passive income through NFT is mainly achieved through investing with money.

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When looking for a way to build passive income with NFT, you should pay attention to a few things, as shown below.

However, this also has its advantages. The popularity of a game can also increase, allowing you to monetize the NFT itself. Therefore, it is important to do proper research on the NFT as well as the staking markets, utilities and rewards.

NFT Betting Platform

There are countless different NFT staking platforms, which means that one example of a platform is not all. To give you a better idea of ​​the variations in this area, we highlight several NFT staking platforms. Due to the dramatic increase in NFT play for money, there are many examples in this area, but did you know that exchanges are also actively participating in NFT staking?

Binance NFT PowerStation

For Binance Fan Tokens, there is a staking platform where NFT holders can earn by supporting their favorite sports teams. By implementing their NFT, they can earn more Binance Fan Tokens. Binance is one of the largest cryptocurrency exchanges, with tens of millions of users worldwide. In addition, Binance provides most of the services, including NFT staking, to its users.

Binance Fan Tokens are utility tokens, associated with a specific sports team. With this token, token holders can enjoy different privileges. For example, as a token holder, you can benefit from priority ticketing or have a say in important decisions in a sports club. Binance Fan Tokens are mainly in demand among people in sports clubs, but can also be used by artists or other celebrities who have large followings.

MOBOX (MBOX)

Another example of an NFT staking platform is the MOBOX platform, a game built on the blockchain. MOBOX has a metaverse called MOMOverse where you can find different NFTs. You can trade these NFTs on MOBOX’s market, but you can also bet them and generate passive income. Each MOMO has different qualities, with its hash power randomly generated.

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When you bet MOMO, you can get admin tokens from MOBOX as a staking reward. The number of rewards is calculated based on the number of MOMO you bet. Because each MOMO is different in rarity, the hash power is also different, which affects the staking reward. Of course, MOBOX is one of many examples. Popular NFT games like Splinterlands and Axie Infinity also offer this service to NFT owners!

What is the best NFT to bet on?

When you decide to bet your NFT, it’s important to have a good idea of ​​what you want to achieve. To find the best NFT for staking, you’ll need to know where the chances are. Therefore, good market research is very important. There are different NFTs you can bet on, each with its own characteristics. Therefore, make sure your strategy is clear to you.

Do you love gaming and want to invest in this industry? Then, for example, an NFT staking platform like Splinterlands is an interesting option for you. This game for money built on the Ethereum blockchain allows players to earn more through NFT staking. Always keep in mind that NFTs can also decrease in value, so there are risks involved in staking your token unavailable.