How to Bet NFTs and Earn Passive Income
Betting on cryptocurrency has become one of the many ways investors earn passive income from their holdings. It is one of the few ways to help investors continuously earn investment returns. However, many do not know that investors can also stake their non-fungible tokens (NFT) to earn passive income. Developments have made non-fungible assets all the more attractive.
What is NFT staking?
By staking an NFT, users can earn rewards by putting the asset to work on a blockchain. To do so, investors and collectors can peg their non-fungible tokens to a platform or protocol. This action will earn stake rewards for stakes.
Staking an NFT can be compared to betting on decentralized finance (DeFi) yield farming. In yield farming, crypto is borrowed or distributed to liquidity providers. Cryptocurrency actors receive rewards through interest or charges others incur during transactions.
Because a non-fungible token is a tokenized asset, staking them works the same way as staking cryptocurrencies. Also, staking is not possible on all non-fungible tokens.
To stake a non-fungible token, users need a wallet compatible with the non-fungible in question. The next step is to connect the wallet to the staking platform so that the investor can send his non-fungible token.
The majority of NFT’s betting platforms provide periodic incentives. These rewards usually expire daily or weekly. The platform’s utility token is often used to pay out these prizes, although there are certain exceptions. You can exchange stake reward tokens and possibly convert them to other cryptocurrencies or fiat money, regardless of the token used for stake rewards.
Popular betting platforms
There are several platforms that offer non-fungible betting services. Some of the popular ones are Binance NFT PowerStation and MOBOX (MBOX). For using Binance’s platform, stakers receive Binance Fan Tokens in return. The token can be used by stakers for various benefits in the Binance ecosystem. Stakeholders may receive preferential treatment when purchasing tickets or participating in important club decisions as token holders. Sports clubs are the main users of Binance Fan Tokens, but celebrities with significant fan bases such as artists can also use them.
There are also stake platforms with autonomous decentralized groups (DAO). Here, NFT owners can secure their holdings in a DAO pool, sometimes referred to as an NFT stake pool. This enables them to take part in platform management tasks.
