5 Ways to Earn Passive Income From NFTs: Make Your NFTs Work For You
The concept of earning passive income through cryptocurrencies has become immensely popular. You’ve probably heard the expression “Make money work for you,” and that’s exactly the premise of passive income with NFTs. Holders of digital assets love it because it allows them to earn while doing little to nothing.
Here are five ways to make your NFTs work for you:
- Royalties and Resale Fees: When you create and sell an NFT, you can include royalty fees in the smart contract. As mentioned earlier, NFTs can be programmed to pay the creator a percentage every time the NFT is resold on a marketplace.
- Staking NFTs: Staking NFTs has become a very popular way of generating passive income. Top ways to generate passive income with NFTs include staking, renting, and releasing NFT liquidity.
- Renting Out NFTs: Did you know that you could rent NFTs? That’s right! One way you can earn passive income is to rent out your NFTs, particularly those in high demand. For instance, some card trading games or metaverse land benefit from rentals. One way to make a profit from NFTs is by creating rental options on platforms designed for this purpose.
- NFT Farming: Similar to staking, NFT farming provides passive income by locking up your NFTs in a platform that rewards you with tokens or other NFTs.
- Release NFT Liquidity & Earn Yield Elsewhere: Explore options to unlock the value of your NFTs and use it in other DeFi platforms to earn yield.
Below are 6 popular ways to earn passive income with NFTs through different platforms (although we’ve highlighted the 5 most effective above):
- NFT Index Funds: While not the most common strategy, some platforms offer exposure to a basket of NFTs, allowing you to earn passively based on the overall performance of the index.
In the following, we will take a look at different ways to earn passive income from NFTs. For example: Renting out NFTs is a viable option, especially if you hold valuable gaming assets or virtual land.
Bottom Line: Earning passive income from NFTs is a growing trend with various opportunities. Understanding each method and its associated risks is crucial before diving in. Research different platforms and protocols to find the best fit for your NFT portfolio.