Here are five ways to generate passive income from NFTs
Non-Fungible Tokens (NFT) have become a hot topic in the world of cryptocurrency and blockchain. While most people view NFTs as digital art or collectibles, they can also be used to earn passive income.
Musicians, creators and celebrities have turned to NFTs to monetize their work. Digital artists have also turned to non-fungible tokens to generate revenue through their art. Earning passive income has become a big hit. NFT holders can monetize their holdings with minimal effort.
Ways to earn passive income
There are several ways to earn passive income through NFTs. Here we will look at five ways:
Royalties
One of the easiest ways to earn passive income with NFTs is through royalties. When an NFT is sold, the creator can earn a percentage of the sale price. This percentage can be set by the creator, and it can vary from a few percent to as much as 10% or more.
Staking
Another way to earn passive income with NFTs is through betting. Staking involves holding an NFT and earning rewards. These rewards can come in the form of tokens, which can be sold or traded for other cryptocurrencies.
Yield Farming
Yield farming is a relatively new concept in the cryptocurrency world, but it is quickly gaining popularity. Yield farming involves using NFTs to provide liquidity to decentralized finance protocols (DeFi). In exchange for providing liquidity, investors can earn rewards in the form of tokens or fees.
Rental income
NFTs can also be used to earn rental income. For example, an NFT representing ownership of a virtual world or game content can be rented out to other players for a fee. This rental income can be a stable source of passive income for the owner of the NFT.
Fractional ownership
Finally, NFTs can be used to earn passive income through fractional ownership. Fractional ownership involves dividing the ownership of an NFT into smaller pieces and selling these pieces to investors. Each investor earns a portion of the royalties or other income generated by the NFT, providing a passive income stream for each investor.
NFTs offer a variety of ways to earn passive income, from royalties and efforts to provide farming, rental income and shared ownership. While the space is still in its early stages, the potential to earn passive income with NFTs is significant. The NFT market is creating new ways for crypto users to explore the growing digital asset economy. It is likely to play an increasingly important role in the finance of the future. But investors should do their research and be cautious when investing in a new technology or asset class.
Disclaimer
The views and opinions expressed by the author, or any person mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
