How to Generate Passive Income From Your NFTs
Writing is challenging, but earning money from it is even more challenging. Cash flow is complex, especially at first. This holds true for practically all careers, not just writers. This is the reason we are completely smitten with the idea of creating passive income.
Whether we will ever be able to support ourselves through our job is something we can’t help but ponder. If we ever wake up in the morning knowing that we have passively earned the cash or cryptocurrency while dozing off, or paying for groceries at the shop, knowing that as we went around the store, we earned the cash that we would now spend actually to pay for the foods.
Therefore, if your goal in using blockchain technology or cryptocurrency is to earn a passive income, you are most definitely at the right place.
Over the past few years, NFTs have drawn a lot of interest and resembled an unstoppable gold rush. It’s also fascinating to discover the various ways in which NFTs can be used to create passive revenue.
3 Best Ways to Generate Passive Income From Your NFTs
- NFT Renting
In many cases, NFTs are available for short-term rentals.
One way you can earn passive income is to rent out your NFTs, particularly those in high demand. The amazing part about it is that customers are typically allowed to choose the length of the rental agreement and the NFT leasing rate.
One example is card trading games. To increase their chances of winning, players can borrow NFT cards. As anticipated, smart contracts govern the terms of the agreement between the two parties.
2. NFT Staking
NFT staking is one of the popular and latest utilities to generate passive income.
Staking is the act of pledging your NFTs into a blockchain network. In exchange, the blockchain will pay you crypto, which you may then exchange, buy, sell, or keep for yourself. To put it simply, the process refers to depositing NFTs into a DeFi platform to accrue rewards.
The NFT staking platform includes games like MOBOX, which was created on the blockchain. You can invest in NFTs in its metaverse, known as MOMOverse, and generate passive income.
3. Earn Royalties on Your NFTs
Similar to royalties for other forms of creative expression, like music and film, every time someone uses or sells your NFT, they are required to give you a portion of the proceeds.
The cool part is that these royalties are included in a smart contract, so you will automatically earn your royalty each time a transaction is carried out on the blockchain. Isn’t that amazing?
Some of the best NFT royalties, where the artist receives a cut of every sale made on the blockchain, include Doodles, HypeBears, and WonderPals.
Closing Thoughts
The cryptocurrency industry has experienced tremendous growth during the last several years. Non-fungible tokens, or NFTs for short, are one field that emerged from it and is now gaining ground. Non-fungible tokens are becoming quite popular in the art world as well. These tokens are not just for the wealthy; they are also introducing individuals to new business opportunities.
Passive income honestly feels like a luxury to me right now as a writer, but it’s crucial to research the different investing strategies people employ and assess the advantages and disadvantages of particular assets because doing so can give you more flexibility with your finances in the future!
