We all know about staking cryptocurrencies, whereby you make a return on your investment. Nowadays, you can also make money by staking your nonfungible tokens (NFTs)! By staking your nonfungible tokens (NFTs) on NFT staking platforms, you can make additional returns 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 wealthy people could get through the bank because the interest rates on savings accounts were quite high. Nowadays, you hardly receive any interest on your money in the bank; in some cases, you even have to pay for your savings! Due to the relatively high rewards for staking cryptocurrencies and NFTs, a new-age alternative has been found.
Because a large portion of the NFTs on the NFT market belong to various blockchain games, there are also various staking opportunities in play-to-earn games such as Axie Infinity (AXS), The Sandbox (SAND) and Splinterlands (SPS). In play-to-earn gaming, you can earn not only crypto but also NFTs. This makes it possible to earn NFTs for free and then stake them!
How to earn passive income staking NFTs?
If you have NFTs in your crypto wallet, you can use them to earn passive income. NFT staking is the newest way to build passive income with blockchain technology. With any source of such income, you must make an investment upfront. Although this can be in money or in time, a passive income through NFTs is primarily achieved through an investment with money.
When looking for a way to build passive income with NFTs, it is helpful to 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 earn from the NFT, itself. It is, therefore, important to do proper research on the NFT as well as on the market, the utility and the staking rewards.
NFT staking platforms
There are countless different NFT staking platforms, which means that one example of a platform is not all telling. To give you a better idea of the variations in this area, we highlight a few NFT staking platforms. Due to the huge rise of play-to-earn NFTs, there are many examples in this area, but did you know that exchanges are also actively engaged in NFT staking?
Binance NFT PowerStation
For the Binance Fan Tokens, there is a staking platform where holders of NFTs can earn by supporting their favorite sports 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. In addition, Binance provides the most services, including NFT staking, to its users.
Binance Fan Tokens are utility tokens, which are associated with a particular sports team. 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 within the sports club. Binance Fan Tokens are in demand primarily among those in sports clubs, but can also be used by artists or other celebrities, who have a large following.
Another example of the NFT staking platform is the platform of MOBOX, a game built on the blockchain. MOBOX has a metaverse called the MOMOverse, where you can find different NFTs. You can trade these NFTs on MOBOX’s marketplace, but you can also stake them and build a passive income. Each MOMO has different qualities, with its hashing power randomly generated.
When you stake MOMO, you can receive the governance token from MOBOX as a staking reward. The number of the reward is calculated based on the amount of MOMOs you stake. Because each MOMO varies in rarity, the hashing power also varies, which affects the staking rewards. MOBOX is, of course, one of many examples. Well-known NFT games such as Splinterlands and Axie Infinity also offer this service to NFT holders!
What are the best NFTs to stake?
When you decide to stake your NFTs, it is important to have a good idea of what you want to achieve. To find the best NFTs for staking, you will need to know where the opportunities are. Good market research is, therefore, very important. There are different NFTs you can stake, each of which has its own characteristics. Therefore, make sure your strategy is clear to you.
Do you like gaming and want to invest in this industry? Then, for example, an NFT staking platform like Splinterlands is an interesting option for you. This play-to-earn game built on the Ethereum blockchain allows players to earn extra through NFT staking. Always keep in mind that NFTs can also decrease in value, so there are also risks involved in staking your nonfungible token.