The major goal in investing money is to increase wealth, and the best way to do the job is through earning passive income. Simply put, passive income benefits your money, and you can invest it in various useful assets such as NFTs (non-fungible tokens). However, the market of NFT has been increasing into the major sector of the crypto industry since 2021.
Most people worldwide are surprised to hear NFTs and passive income in the same sentence because all the major headlines are about NFTs selling. All blockchain-based assets can fetch you passive income in many ways, with certain principles adopted from some traditional assets.
Many people are still confused and don’t know about NFTs and passive income. Therefore this guide to earning passive income via NFTs will surely be helpful for them.
Capable of Providing Liquidity Pool
NFTs are already integrated with Defi infrastructure in recent days. In simple words, they can give liquidity. In the initial stage, they provide your tokens into a liquidity pool, a collection of digital assets locked in a smart contract pledge by adding more investors. After that, the platform uses them to hand out loans.
You can find several platforms that give a chance to their users to earn passive income by providing liquidity. With their help, you can easily sell your NFT reward whenever you want to come out from the liquidity pool.
NFT Royalties Help To Get Passive Income
It is also one of the best ways to make passive income, which works just like the royalties of other creative assets like movies, music, and art. Whenever someone uses or sells your NFTs, they must have to give you a percentage. The best part is that NFT royalties are built into a smart contract, so you will automatically get your royalty each time the transaction gets executed on the blockchain.
Lending Your NFT with a Trustable Platform
The greatest contribution of Defi to the world of crypto is providing the renting and lending platform. Typically, you can get Crypto loans with a loan-to-value of 70% to 80%, which means you have to enter more collateral than you take out. This will helps you to finance your reward for lenders to the protocol and create a healthy ecosystem where lenders and borrowers can both get a profit.
In April 2022, the EverGrow coin will provide a new NFT marketplace, which will help you to get new NFT project lending. The mechanism of this platform allows you to build their NFTs as collateral, which totally depends on the market prices and algorithmic assessments, in return for crypto loans. When you use this loan cleverly, you can easily produce enough to cover interest payments and can easily make passive income with your NFTs.
Rent Out Your NFTs
Renting out NFTs is the latest NFT passive income trend for gamers. Nowadays, there are several games available where gamers can rent their NFTs that improve their gaming experience. The NFTs included in this list are weapons that help players win against the most powerful enemies, tools that scale a mountain or help build a house, or skins to craft a player’s character in a cool way.
One of the best things about this strategy is that the transition you made is all automated through smart contracts. You need to enter the period you want to rent out the NFT and the cost you want, and the blockchain will automatically search the renter for you, which will help make passive income for beginners.
Pro gamers are predicting that very soon, the most famous games will feature NFTs, and buying or renting them will be very important if you want to enjoy the game fully. As NFTs continue increasing in price, most players cannot afford one for them. Therefore, they can get a huge yield by renting the NFT projects.
In this case, nobody loses, and as gamers enjoy their game fully, you can earn a huge passive income through your NFT. Therefore, buying NFTs with numerous use cases which are very popular that several developers will want to use in their games.
Earn Passive Income Through Staking NFTs
Staking is a mechanism of crypto in which people pledge their assets to a blockchain network to get the rewards in return. Many blockchains need staking to protect the network and financial rewards through transaction fees. Similarly, you can also stake your new NFT projects in the blockchain network.
So, when you stake your assets, you cannot sell or move them between wallets. However, in this case, you can expect incentives in the form of crypto-currency rewards. One of the best and most advantageous parts of staking NFTs is that you can get full ownership.
Conclusion
It is a guide to earning passive income via NFTs and has everything you need to know. There is no doubt that when you calculate your passive income, you can easily understand that the returns you earn with NFT projects are much higher than other traditional passive returns.
