We all know that staking is a way to get a return on your investment in cryptocurrencies. Currently, you can also make money by staking your non-fungible tokens (NFTs). You can make more money on your investment by staking your non-fungible tokens (NFTs) on NFT staking platforms. Because of this change, NFTs have become even more appealing.
People are looking for ways to make money without working for it more and more. Back when interest rates on savings accounts were high, rich folks could get passive income through the bank. You don’t get much interest in your savings in the bank these days, and sometimes you even have to pay for them. Due to the high rewards for staking cryptocurrencies and NFTs, a new way has been found.
What is NFT staking?
Putting your NFTs to work on the blockchain is done by staking them. Most of the time, NFTs are digital images, like the Bored Ape Yacht Club collection, but they can be anything, from digital art to video files to game items. Staking your non-fungible tokens (NFTs) means that you link them to a platform or protocol. You get staking rewards in exchange for doing this. In this way, you can make more money while still owning the NFT.
You can compare this staking method to decentralized finance (DeFi) yield farming. Cryptos are loaned or utilized by liquidity providers to earn rewards through interest or the transaction costs paid by others. That way of earning interest is the same as earning interest through a bank, but there is no middleman in this case. NFT staking is part of the world of decentralized finance, while banking is a form of centralized finance.
How does NFT staking work?
Because NFTs are tokenized assets, staking them works the same way as staking cryptocurrencies. Also, not every non-fungible NFT can be staked, just like not every token can be staked. Since NFTs are tokenized assets, you can use NFT staking platforms to store them safely. A smart contract on the right blockchain protocol can make this happen.
Even though staking NFTs is a reasonably new idea, many people who own NFTs are pleased about it. Because a non-fungible token is unique, people who own it are less likely to sell it. This is the big difference between traditional money and cryptocurrencies, which are easy to buy and sell. It would be best if you had a crypto wallet compatible with the NFT you want to stake.
First, make sure that your favorite wallet also works with the blockchain where the NFT is. Then you need to hook up the wallet to the staking platform so that you can send your NFTs to the platform. This action is kind of like staking your coins. You can do both by going to the section of the platform where you can stake.
NFT staking rewards
When NFT holders use their NFTs, they can get different staking rewards. These rewards depend on the platform and the type of NFT. Most platforms for betting on NFTs give out rewards regularly. These rewards are often paid out daily or weekly. Most of the time, these rewards are given out in the platform’s utility token. No matter what kind of token is used for staking rewards, those tokens can be traded and even turned into other cryptocurrencies or fiat money.
A lot of the NFTs on the NFT market come from different blockchain games, so there are also different ways to stake in play-to-earn games like Axie Infinity (AXS), The Sandbox (SAND), and Splinterlands (SPS). In “play-to-earn” games, you can earn crypto and non-fungible tokens (NFTs). This lets you get NFTs for free and then bet on them.
How to make money by staking NFTs?
If you have NFTs in your cryptocurrency wallet, you can use them to make money without doing anything. NFT staking is the newest way to use blockchain technology to make money while you sleep. You have to put money into any source of income like this. Even though this can be done with money or time, the main way to get a passive income from NFTs is to invest money.
When looking for a way to make passive income with NFTs, it’s essential to keep a few things in mind.
But there are also some good things about this. You can also make money if the number of people who play the game increases. So, it is crucial to do proper research on the NFT and the market, the utility, and the staking rewards.
NFT staking platforms
There are many different ways to stake on NFTs, so one example of a platform does not tell you everything you need to know. We’ll talk about a few NFT staking platforms to give you a better idea of how different this area is. Because play-to-earn NFTs have become so popular, there are a lot of examples in this area.
Binance NFT PowerStation
There is a staking platform for Binance Fan Tokens where people who own NFTs can earn money by supporting their favorite sports teams. They can get more Binance Fan Tokens by putting their NFTs to use. Binance is one of the biggest places to buy and sell cryptocurrencies. It has tens of millions of users all over the world. Also, Binance offers the most services to its users, such as NFT staking.
Binance Fan Tokens are useful tokens
that are tied to a certain sports team. Those who have this token can get a lot of benefits. For example, if you have a token, you can get first dibs on tickets or have a say in important sports club decisions. People in sports clubs mostly want Binance Fan Tokens, but artists and other famous people with a lot of fans can also use them.
The platform of MOBOX, a blockchain game, is another example of an NFT staking platform. You can find different NFTs in MOBOX’s metaverse, which is called the MOMOverse. You can buy and sell these non-fungible tokens (NFTs) on MOBOX’s marketplace, but you can also stake in them to make a passive income. Each MOMO is different, and its hashing power is chosen at random.
MOBOX will give you the governance token when you stake MOMO as a stake reward. The number of rewards you get depends on how many MOMOs you bet. Because each MOMO is different in how rare it is, the hashing power is also different, which changes the rewards for staking. MOBOX is just one example, but there are many others. This service is also available to NFT holders in games like Splinterlands and Axie Infinity.
Which NFTs are the best to stake on?
When you decide to stake your NFTs, you should know what you want to get out of it. You must know where the opportunities are to find the best NFTs for betting. So, it is very important to do good market research. You can bet on different NFTs, each of which has its own features. So, make sure you understand what your plan is. Always keep in mind that NFTs can also lose value, so staking your non-fungible token also comes with risks.