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Non-fungible tokens have stolen the show since 2021, and a lot of investors are starting to make their way towards the scene. It has been thriving in the market for some time now and people are also keen to learn more about it and make some profit out of it.
For starters, the total amount spent on buying NFTs has been on a roll. It started out with just a value of $162.4 million to begin 2021, but now it has enjoyed a huge spark after moving past the $12.6 million mark in 2022 alone. That says a lot about the growth of the market in just a short period of time.
A lot of investors have tried to make the most of NFTs and earn. Some even tried going for questions on blockchain gaming – can NFT games help you earn money? Sure, there are a lot of NFT blockchain games on the market, but not every crypto enthusiast is keen to play games all the time.
The possibilities are endless for NFTs. Collections are already on the prowl to begin with, which means the big market of NFTs is also starting to expand on a much faster note.
Here are some of the best ways to gain profit from your NFTs:
With NFTs now integrated with decentralised finance (DeFi), it is also possible to at least show some liquidity and even get some NFTs in return. That helps you build your spot in the liquidity market since providing liquidity on Uniswap V3 will have an automated market maker (AMM) issue an ERC-721 token, which is an LP-NFT.
This means that you can provide the details of the total amount locked in the pool itself. All of the data linked to the said NFT is already seen as a token pair that was deposited along with the symbol and pool address as well.
Staking NFTs is another way to earn since it just needs people to lock assets into the DeFi protocol and then turn it into a smart contract. This process works on a Proof of Stake (PoS) system, where users can get rewards based on the number of NFTs they have staked combined with the annual yield percentage (APY).
A part of the rewards given to stakers is mostly put in governance tokens. These protocols allow the holders with voting rights to have power over the future growth of the involved ecosystems. That means that people can reinvest coins that they have earned from staking into other yield protocols as well.
NFTs are built with a technology that powers creators to put terms that imposes royalty fees as soon as it changes hands on the market. Creators get passive profit from each trade that involves their NFTs. That also works even if they sell their creations to certain collectors.
Creators can earn a share of the sales price of an NFT in question without any delay. If an NFT’s royalty is set at 10%, then the creator will get that rate from the total sale price each time that their artwork is sold to a new owner. With the high volume of NFT trading, it is possible to earn a lot in just a whole month.
Renting is perhaps the best way to earn passive income. A single NFT is always in high demand, and having one of those is already a win especially for those who have trading cards. The deal between two trading parties is always governed by smart contracts, and NFT users have all the right to set the duration of their rental agreement.
ReNFT is one of the biggest platforms that support this. Lenders are allowed to set max borrowing periods while also giving them daily rates and so on. Most of the time, renting rates are at 0.002 all the way up to 2 ETH on average.
Yield farming is more of a core component for AMMs to work. This means that users can also farm for yields with the use of NFT products which is the act of leveraging DeFi protocols to get the highest possible yield with all the digital assets at hand.
Going for yield farming is a huge boost to earn NFTs. This one unlocks a layered income system, giving you more profit in the long run. If you are still asking for options on blockchain gaming – can NFT games earn you money? Yes, but that isn’t the only way to do so.
In the end, NFTs are a growing part of the crypto industry, and it is safe to say that there are many options on how people would want to do their business with NFTs in the long run. That means there may be more options on how they can earn from it as the industry grows more one year after another.