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How to earn from NFT staking?

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How to earn from NFT staking?.


non-tradable tokens,cryptocurrency staking,NFT staking platforms.


We've all heard of cryptocurrency staking, which allows you to earn money from your investment. Nowadays, you can also earn money by staking your non-tradable tokens (NFTs)! You can earn additional returns on your investment by staking your non-tradable tokens (NFTs) on NFT staking platforms. NFTs have become even more attractive because of this development.


People are increasingly seeking innovative ways to earn money without having to work for it. Passive income was something the rich could get from the bank because the interest rates on savings accounts were quite high. These days, you get almost no interest on your money in the bank; in some cases, you even have to pay your savings! A new option has been discovered as a result of the relatively high payouts for staking cryptocurrencies and NFTs.


Related: About NFT Marketplaces?


What is NFT Staking?

Staking your NFTs is a way to make your unique token work on the blockchain. NFTs are often associated with digital images such as the Bored Ape Yacht Club collection but can be anything from digital art to video files and game elements. You get staking rewards for this action. This way, you can earn extra while still having NFT.


You can compare this method of staking to yield farming of decentralized finance (DeFi), where cryptocurrencies are lent or distributed to liquidity providers to earn rewards through interest or transaction costs incurred by cryptocurrencies. Earning interest in this way is similar to earning through a bank, but in this case, there is no middleman. NFT staking belongs to the world of decentralized finance while the banking form is centralized.


How does NFT staking work?

  • Since NFTs are tokenized assets, NFT staking works similarly to cryptocurrency staking. Also, for NFTs, not all non-tradable tokens are staking, just as it is not possible for all tokens. Since NFTs are tokenized assets, you can place them on NFT staking platforms where you can keep them safe. This is possible with a smart contract in the appropriate blockchain protocol.
  • While NFT staking is a relatively new concept, many NFT owners are very excited about this development. This is because a non-tradable token is unique, which makes its holders reluctant to sell. This is the big difference between cryptocurrencies and cryptocurrencies where you can easily buy and sell cryptocurrencies. To stake NFTs you need a crypto wallet that must be compatible with the NFT in question.
  • First, check if your preferred wallet also matches the blockchain with NFT turned on. Next, you need to connect the wallet to the staking platform so that you can send your NFTs to the platform. This process can be compared to stacking your parts. Both can be done by accessing the staking portion of the platform.


NFT Staking Rewards

The type of stake rewards NFT holders can receive for distributing their NFT depends on the platform and type of NFT. Most NFT staking platforms offer periodic rewards that are usually paid out daily or weekly. Usually, these rewards are paid to the utility token of the platform, but there are exceptions. Regardless of the token used for stake rewards, you can use staking reward tokens and optionally convert them to other cryptocurrencies or fiat currency.


Additionally, there are betting platforms that have Decentralized Autonomous Organizations (DAOs). Here, NFT holders can lock their assets in a DAO pool, also known as the NFT stake pool, which allows them to participate in governance tasks on the platform. This usually includes the right to vote when proposals are made. It is possible to make bids yourself, but this varies by DAO.


Related: How to choose the best mining pool?


Since the majority of NFTs in the NFT market belong to various blockchain games, there are also various staking opportunities in play-to-win games such as Axie Infinity (AXS), The Sandbox (SAND), and Splinterlands (SPS). In games won by playing, you can earn not only crypto but also NFT. This allows you to win NFTs for free and then place bets!


How to earn passive income by staking NFT?

NFTs can be used to generate passive revenue if you have them in your crypto wallet. NFT staking is the newest way to earn passive income with blockchain technology. You must make an initial investment, regardless of the source of this income. Be it money or time, passive income through NFTs is mostly earned by investing money.


When looking for a way to earn passive income with NFTs, there are a few things to pay attention to as listed below.


However, this also has its advantages. A game's popularity can also increase, allowing you to earn the NFT itself. This is why it is important to do proper research on NFT as well as the betting market, benefits, and rewards.


NFT Staking Platforms

There are countless different NFT staking platforms, which means that one example platform doesn't quite tell. We highlight several NFT staking platforms to give you a better idea of ​​the variations in this space. Due to the huge increase in play-to-win NFTs, there are many examples of this, but did you know that exchanges are also actively interested in NFT staking?



Binance NFT Powerhouse

There is a Binance Fan Token betting platform where NFT holders can earn by supporting their favorite sports teams. They can earn additional Binance Fan Tokens by distributing their NFT. Binance is one of the most popular cryptocurrency exchanges in the world, with tens of millions of users. Additionally, Binance provides most services to its users, including NFT staking.

Binance Fan Tokens are utility tokens linked to a specific sports team on Binance. Token holders can benefit from a variety of benefits using this token. As a token holder, you can, for example, have first dibs on tickets or have a say in critical decisions at the sporting club. Binance Fan Tokens are primarily in demand by sports clubs, but can also be used by artists or other celebrities with large audiences.


MOBOX (MBOX)

The MOBOX platform, a blockchain-based game, is another example of the NFT staking platform. MOBOX has a megastore called MOMOverse where you can find different NFTs. You can trade these NFTs on the MOBOX market, but you can also stake them and earn passive income. Each MOMO has different attributes with randomly generated hash power.


When you bet on MOMO, you can get MOBOX Governance Token as a betting reward. The number of prizes is calculated based on the number of MOMOs you bet. As the rarity of each MOMO differs, the hash rate also changes, which affects the staking rewards. MOBOX is, of course, just one of many examples. Famous NFT games like Splinterlands and Axie Infinity also offer this service to NFT owners!


What are the best NFTs to bet on?

When deciding to stake your NFTs, it's important to have a good idea of ​​what you want to achieve. To find the best NFTs to stake, you need to know where the opportunities are. Good market research is therefore very important. There are different NFTs you can bet on, each with its own characteristics. So make sure your strategy is clear to you.


Do you like playing games and want to invest in this sector? Then an NFT staking platform like Splinterlands for example is an interesting option for you. Built on the Ethereum blockchain, this win-win game allows players to earn more through NFT staking. Always keep in mind that NFTs can also drop in value, so there are risks involved in staking your non-tradable token.

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