Forget About Selling NFTs When You Can Earn Passive Income, Here’s How

Rolling all over the internet, NFTs have been in discussion over the past few years. The NFT market has grown into a major sector and has changed the art world forever. Everyone, whether a sports person, a showbiz celebrity, a politician, or a businessman, has somehow benefited themselves by diving into the crypto market.

No doubt, the NFTs get sold at very high prices to recover the cost it takes to be created e.g. Beeple’s NFT broke the sale records at $69.3 million earlier this year. But still, there are a number of ways to generate an ongoing income from NFTs rather than to sell them at higher prices, for a one-time income.

What Are NFTs?

The non-fungible token NFT is a kind of trading card, completely unique in itself and can’t be replaced with something else. It means that they can’t be traded in the same way as bitcoin. Instead, they simply point to the file’s location that exists somewhere else on the internet.

For a layman, we can say that $10 is equal to $10 but one NFT is not equal to another NFT. The value of NFT is governed by the user’s interest and greeting towards it. The current market of NFTs depicts its bright future with the trends very favorable for the marketing techniques. Apart from all the advantages, it can be very beneficial if there comes some continuous income out of these NFTs.

Now let’s discuss some of the ways to generate income from NFTs:

Renting out the NFTs:

One of the ways to earn an income is to rent out the famous NFTs and get income on regular basis. Like in the case of trading games, where players are allowed to borrow the NFT cards to enhance their winning chances. NFT users usually have to set the duration of rent and lease rates as governed by the smart contracts.

NFT Royalties:

Here, the original creator of the NFT can earn a royalty, a share in the sale price, for his digital artwork sold each time to the new owner. If the royalty is set at 10% of the total sale price, he will receive it each time as prescribed in the smart contracts which are self-executing computer programs to enforce the agreements governing the entire process.

Stake the NFTs:

Staking NFTs is actually the process to deposit or lock the digital assets into a Defi protocol smart contract to produce income. Some of the platforms facilitating the NFT staking include Kira Network, NFTX, and Splinterlands giving the voting rights to the token holders to reinvest coins earned from staking NFTs into other protocols to earn an income.

Provide Liquidity in the Pool:

When a user provides liquidity into the pool and receives NFTs, it is also a way to gain income through these. e.g. when we provide liquidity on Uniswap v3, the AMM issues an ERC-721 token, giving all the detail of the total amount locked in the pool. Other information includes the deposited token pair, the token’s symbols, and the pool’s address. Now this NFT can be sold quickly to liquidate the user’s position on the pools.

Summing up:

No matter what are the consequences it may face, but still, NFTs are going to be at the top in the crypto sector. It seems to have an enlightened future as its number of users is increasing with the passing days and people are more concerned to make money out of them.

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