What is NFT staking and how to earn from NFT?

What is NFT staking and how to earn from NFT?

We all know about cryptocurrency betting, where you can get a return on your investment. Today, you can also make money by staking your non-fungible tokens (NFTs)! By staking your non-fungible tokens (NFTs) on NFT staking platforms, you can earn additional returns on your investment. Due to this development, NFTs have become more attractive.

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 wealthy could get through the bank because interest rates on savings accounts were pretty high. Today, your money in the bank bears little interest; in some cases, you even have to pay off your savings! New-age alternatives have been found due to the relatively high returns of staking cryptocurrencies and NFTs.

What is NFT staking?

Staking NFTs is a way to put your unique tokens on the blockchain. NFTs are often associated with digital images, such as the Bored Ape Yacht Club series, but they can be a variety of objects, from digital art to video files and in-game items. NFT staking means that you attach a non-fungible token to a platform or protocol. In exchange for this action, you will receive a staking reward. In this way, you can earn additional income while remaining the owner of the NFT.

You can compare this type of betting to a decentralized finance (DeFi) yield farm, where cryptocurrencies are lent or deployed to liquidity providers in return for interest or transaction costs incurred by others. This way of earning interest is similar to interest earned through a bank, but in this case there is no intermediary. NFT Staking belongs to the decentralized financial world, while the banking form is centralized.

How does NFT staking work?

NFT staking works the same way as cryptocurrency staking because NFTs are tokenized assets. Also, with NFTs, not all non-fungible tokens can be staked, just as not all tokens can be staked. Since NFTs are tokenized assets, you can deploy them on NFT staking platforms to keep them safe. This can be achieved through smart contracts on appropriate blockchain protocols.

While staking NFTs is a relatively new concept, many NFT holders are very excited about this development. This is because non-fungible tokens are unique, making holders reluctant to sell. This is the biggest difference from cryptocurrencies, which you can buy and sell easily. To stake an NFT, you need a crypto wallet, which must be suitable for the relevant NFT.

First, make sure your favorite wallet is also suitable for the blockchain where the NFT resides. Then you need to connect your wallet to the staking platform to be able to send your NFTs to the platform. This action can be compared to your coin bet. Both can be done by going into the staking section of the platform.

NFT Staking Rewards

The type of staking rewards that NFT holders can receive when deploying NFTs depends on the platform and the type of NFT. Most NFT staking platforms offer recurring rewards, usually paid on a daily or weekly basis. These rewards are usually paid in the platform’s utility token, but there are exceptions. Regardless of the token used for staking rewards, you can trade staking reward tokens and potentially convert them into other cryptocurrencies or fiat currencies.

Additionally, there are staking platforms with autonomous Decentralized Organizations (DAOs). Here, NFT holders can lock their assets in a DAO pool, also known as the NFT staking pool, which allows them to participate in governance tasks on the platform. This usually includes voting rights when making proposals. You can also bid yourself, but this varies from DAO to DAO.

Since a large portion of the NFTs in the NFT market belong to various blockchain games, there are also some staking opportunities in games such as Axie Infinity (AXS), The Sandbox (SAND), and Splinterlands (SPS). In a win-win game, you can win not only cryptocurrencies but also NFTs. This makes it possible to win and stake NFTs for free!

How to earn passive income with Staking NFT?

If you have NFTs in your cryptocurrency wallet, you can use them to earn passive income. NFT staking is the latest way to generate passive income using blockchain technology. For any source of such income, you must make an initial investment. While this can be cash or time, passive income through NFTs is primarily achieved by investing in cash.

When looking for a way to build passive income through NFTs, it can be helpful to note the following points, as shown below.

However, this also has its advantages. The popularity of the game can also increase, allowing you to win with the NFT itself. Therefore, it is important to do proper research on NFTs and market, utility and staking rewards.

NFT Betting Platform

There are many different NFT staking platforms, which means that one example platform is not everything. To give you a better idea of ​​what’s changing in the space, we’ve highlighted some NFT staking platforms. There are many examples of this due to the massive increase in NFTs winning by gaming, but did you know that exchanges are also actively participating in NFT staking?

Binance NFT Power Station

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

Binance Fan Tokens are utility tokens associated with specific sports teams. With this token, token holders can enjoy various privileges. For example, as a token holder, you can benefit from priority ticket sales, or have a say in important decisions for a sports club. Binance Fan Tokens are mostly sought after in sports clubs, but they can also be used by artists or other celebrities with 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 the MOBOX market, but you can also stake MOMO, and you can earn MOBOX governance tokens as a staking reward. The amount of rewards is calculated based on the amount of MOMO you stake. Due to the different rarity of each MOMO, the hashing power is also different, which affects the staking rewards. MOBOX is certainly one of many examples. Popular NFT games like Splinterlands and Axie Infinity also offer this service to NFT holders!

What are the best NFTs?

When you decide to stake your NFT, it is important to have a clear understanding of what you want to achieve. To find the best NFTs to stake, you need to know where the opportunities lie. Therefore, good market research is very important. You can stake different NFTs, each with its own characteristics. So make sure your strategy is clear to you.

Do you love gaming and want to invest in the industry? So, for example, an NFT staking platform like Splinterlands is an interesting option for you. This win-win game built on the Ethereum blockchain allows players to win more by staking NFTs. Always remember that NFTs can also depreciate in value, so staking non-fungible tokens is also risky.

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