NFT is still going strong, even if the whole crypto space seems to be having a bit of a hiccup. With many reasons why this is happening, one of the most important ones is that it does not limit itself to being a currency. In fact, NFTs can provide much more utility, being widely used in art, music, and even gaming.
One of the exciting things about NFTs are the NFT staking opportunities. The basic concept is pretty simple – even though your NFTs are sitting in your portfolio, you can earn money while keeping them in your possession.
It would mean that you get your NFT staked. How can you do it? What NFTs can be staked, and what are some of the most prominent places to stake them?
That, and much more, we will explain in this article. Let us dive in!
This article is a segment of a more extensive piece :
What Is an NFT?
But first, let’s quickly go over the topic of NFTs, as there is a bit of confusion surrounding this topic.
First of all, let’s go over the acronym itself. NFT stands for non-fungible token. What it means is that you can’t exchange one NFT for another. Unlike cryptocurrencies, where you can quickly transfer one NFT to another, there is little to no issue surrounding that. Of course, not every NFT is worth the same, so exchanging them freely would be absurd.
Secondly, NFTs are tokens situated on a blockchain. What it means is that you can access the owner’s information and transactions made with this NFT. That said, blockchain grants you the security that no other place can provide. As they are practically unhackable, you can ensure your NFTs are safe and sound.
But what are they exactly? Well, in simple terms, they are proof that you are the owner of the digital medium it represents.
Contrary to popular belief, NFTs are not the pictures themselves. NFTs are tokens that point to the address where you can find the sole owner of said NFT. Of course, people who own the NFTs also have digital files from the creator.
What can become an NFT? Well, anything is possible. You can create NFTs from audio, video, pictures, and anything a digital medium can represent.
So, now that we know what NFTs are, let’s go over to the topic at hand – NFT staking!
NFT Staking – What’s It All About?
NFT staking refers to using your tokens not only for viewing or keeping in your possession but also for gaining some cold, hard cash. For example, if you have an NFT, you can use the Proof-of-Stake blockchains to ensure their safety. You can also lend your NFT assets in the form of characters in a game for a staking period to some less experienced players.
Additionally, if you decide to do that, you will get staking rewards, either from the blockchain, from the players, or from whomever it is that borrowed your NFTs. You are still the owner of those pieces, but you can gain some passive income from them without doing anything.
NFT Staking – How to Get Started?
So, how does it work? Well, you can earn rewards if your NFTs staked are bringing some money. Many NFT projects can be staked, and you can easily find them out, but we will talk about it in more detail in the further portion of this article.
If you’re searching for intriguing NFT projects, consider reading this article – Best Upcoming NFT Projects.
So, how does NFT staking work in practice? Well, there are a lot of similarities between this concept and crypto. NFT staking works similarly to what we have seen with staking cryptocurrencies or a bank lending you someone else’s money. The only difference in this scenario is no middleman. The whole crypto world is decentralized, so there really is no way that you could lend some money from a centralized oversight institution. There is only P2P kind of deals or, in the case of some more prominent players, company-to-player.
If you want to stake NFTs, you must first find out if your NFT is even stackable. There are many of them on the market, and some may be available for staking, and some may not. It all depends on what kind of asset you have.
And if you want to start this process – it’s pretty simple. Connect your wallet to the platform we will provide later, send out your offer, and there you have it – you can now start staking your NFTs for some good passive income.
And now that we know what this concept is all about, let’s find out what we’ve all been looking forward to – the NFT rewards.
NFT Rewards – Everything You Need to Know
There are plenty of NFT rewards you can gain by simply playing in the market. Some of them are paid daily, some weekly, some even monthly. Most of the sites pay up in the form of their native currency or a utility token. You can either use this token within a particular game or environment or try to exchange it for cryptocurrency. It’s like selling World of Warcraft coins on eBay or FIFA coins. You just need to find the right place to sell them.
So, before you will get into NFT staking rewards, be sure to find out if it is possible to earn some real money through this process or if it is mostly based on a completely restricted environment.
The most common NFT staking opportunities lie within NFT gaming. Of course, you can stake whatever you like, as long as it’s stake-able, but games are just the easiest to do. For example, if you want to enter the NFT market, you can launch Axie Infinity. It’s a Pokemon-style game where you collect different types of Axies that you can breed, train and make them fight with each other to grow and be even more deadly.
Additionally, you can earn a lot of those rare or valuable creatures and lend them to other players when they need them to fight or if they want to grow their party. And that’s how staking NFTs to earn passive income works!
What Are the Risks of Staking NFTs?
But there cannot be a rose without thorns, so let’s discuss the potential risks of staking your NFTs. As with all things in the crypto space, staking your NFTs can have their threats and potential issues that you must keep in mind. Here are some major ones to consider before getting into it.
You Can Lose Your NFTs
…if you are not careful. There is a potential risk that you will not get your NFTs back from the “loan.” Sometimes the keys are getting lost. Sometimes, adding your assets to yet another crypto site can get you in trouble, as those are not as secure as blockchains. But – it’s really like with any investment.
There are plenty of opportunities in Shady Business Inc., with loans for initially zero percent and then, suddenly, 200%. Some banks are operating in tax havens, where laws don’t apply. Plenty of things are shady when it comes to investing, so the best thing you can do is not to abstain from doing it at all but rather – check what you are investing in. A basic research may help you you avoid potential problems.
The best thing you can do is find the most reputable players on the market and give them your keys. It is not a perfect solution, but like with all the other elements in the world of investments. There is no perfect one, is there?
Price Fluctuation
There is also the risk of price plummeting or skyrocketing. If you have invested your time and money into NFTs, there is always a risk that comes from every investment, especially those in the crypto space, which is the sudden change of pace.
For example, you were grinding a lot, and you have your perfect little fluff ball in some Play-2-Earn game. But, for some reason, the platform owners decided to do a discount week, where they put your one at half price. Well, the cost of your staking will shrink significantly.
On the other hand, let’s say that the price of Ethereum, the most popular blockchain to put your NFTs at, will drop a few hundred percent, as it happened in early 2022. Now, your 10 ETH worth of NFT is not this giant pile of money, but a rather smaller one, with significantly less value for staking.
Of course, there is also a possibility that different NFTs will rise to the top and suddenly become the most popular thing in the world. And that is the beauty of this concept. Whether we like it or not, it’s just the more hardcore stock market, where everything can happen!
The Best NFT Staking Platforms
Let’s now find out the best NFT staking platforms for our hard-earned NFTs. Earning rewards in crypto games is great, but what if those games were actually good? Well, let’s check it out!
Binance
Binance is one of the most popular crypto websites ever created. It’s an exchange; you can sell your Non-Fungible Tokens there, and – as it turns out – it’s also pretty good when it comes to staking your NFTs. For example, if you have a Binance Fan Token, you can stake your NFTs and gain extra income with your sports team!
How does it work? Well, you can get a lot of rewards if your team wins.
Additionally, you gain access to some priority ticket sales and many other things! Getting new tokens to gain interest is also a great idea! Although the tokens were created with sports in mind, there are plenty of other uses that you can explore to earn weekly rewards. Find out more at the official Binance Token Platform.
MOBOX
Next up, we have – MOBOX. It’s a blockchain-based game where you can trade your NFTs with other players and work together towards the common goal – getting on the top of the list! Like Pokemon or Axie Infinity, each MOMO has a different quality; some are worth more when staking than others.
MOMOverse is wild but welcoming, and you can find a lot of exciting tokens to stake for your passive income.
The reward is a governance token. It’s calculated based on the number of MOMOs you stake and how rare or in demand their abilities are. Each element influences the staking reward, so find the rare one! You will then be able to gain some tokenized assets in the native cryptocurrency of the platform and exchange it on the NFT marketplace or stake it even further.
Many NFT holders love this game, and there is much to gain, so grab your MOMOs and be ready for severe staking!
Splinterlands
Another great example of staking an NFT is Splinterlands. It’s an NFT staking platform, where you play to earn cards. Similarly to the games mentioned above, each one of them is different when it comes to the value and rarity. You can stake your cards in order to gain some in-game currency, that you can exchange on NFT marketplaces, or just simply use it to reinvest in the game. Splinterlands is one of the better-rated NFT games, as it has a rather advanced system of fighting with really nice graphics. If you liked Hearthstone, you will probably enjoy this one as well.
Polychain Monsters
The last one our NFT staking opportunity on our list is the Polychain Monsters game. Just like the ones mentioned above, it’s a play-to-earn kind of game, where you collect Polychain monsters in order to find the rarest one among them all. It’s pretty much a Pokemon copy, but with some blockchain-related fun as well. And, if you can make a buck while doing so, then it’s a great opportunity all-around.
What Is Staking an NFT – Conclusion
Podsumowując, stakowanie NFT to całkiem dobry sposób na uruchomienie NFT bez uciekania się do elementów sprzedaży/kupna, które często są uważane za najłatwiejszy sposób zarabiania na NFT i zarobienia trochę Bitcoinów na swojej cyfrowej sztuce.
If you don’t need all this commotion with your NFT earnings, check out the passive income that the NFT staking opens. Of course, you will not get hundreds of thousands of dollars straight away. However, if you put some time into it initially, you can get quite a lot done. Yet, remember about the risks associated with staking and conduct your research.
Posiadanie, handel , bicie monet i tworzenie NFT w celu uzyskania płynności może być dobrym pomysłem, ale przy wielu przywilejach istnieją pewne potencjalne problemy na przyszłość. Niezależnie od tego, czy chodzi o niejednoznaczną koncepcję inwestorów, czy też problemy z zarządzaniem platformą na różnych poziomach, oczekiwany zwrot może sprawić, że oczekiwany zwrot będzie znacznie bardziej problematyczny, niż powinien.
If you already know what NFT flipping is, find out what NFT staking is.
That was it from us for this article. We hope you enjoyed this one, and if you have some NFT-related questions – be sure to check out other articles on our site.
Read also:
- How to Price an NFT and Get Good Profit in the Process
- Best Upcoming NFT Projects – [Check 11 Relevant Projects]
