What Can You Do With NFTs?
How to Earn from NFTs?
Can You Earn NFTs?
Non-fungible tokens (NFTs) have quite a lot of potential to generate substantial returns for their token holders. However, a common question a lot of people have in this sector is:
For some users, one of the reasons why NFTs are so expensive is because of the fees involved in their creation. Minting NFTs has traditionally been a costly procedure, as most developers and NFT artists are well aware. In fact, as the Ethereum network becomes more congested, gas fees continue to rise. As a result, many everyday NFT developers and creators consider the process of minting their NFTs to be unprofitable.
This also applies to buyers, who may end up spending more on gas fees than the NFT itself, making it a costly endeavor. However, there are many ways to earn NFTs without having to pay exorbitant costs.
Earning from NFTs by Staking
The opportunity to stake crypto to earn NFTs is one of the advantages of the marriage of NFTs and decentralized finance (DeFi) protocols.
By staking cryptocurrencies, users lock up their active liquidity in order to earn an APY or reward. In exchange for contributing assets, these users receive incentives in the form of the native cryptocurrency. Now, instead of just earning cryptocurrencies for staking, users can also earn NFTs.
In the same way, you can earn NFTs from a project while earning passive income from incentives or fees for committing the asset to a blockchain. The majority of NFT staking prospects are currently available on play-to-earn gaming platforms like Axie Infinity, Sandbox, Chikn, and so on. To stake, all you need is a crypto wallet like MetaMask that supports NFTs.
In-game NFTs, which gamers can purchase with cryptocurrencies or earn by playing, account for a significant portion of the NFT market. Since its inception in 2018, Axie Infinity, for example, has amassed a sales volume of over $4 billion. It is crucial to note, however, that not all NFTs can be staked, and not all NFTs can be earned. As a result, you should double-check the details before purchasing the NFT.
While some platforms allow you to use any NFT, others require you to buy native NFTs in order to receive staking token incentives, which are usually priced in the platform’s native utility token. Some of the incentives provided to stakeholders are represented in governance tokens in certain instances. These protocols provide token owners voting rights over how their ecosystems develop in the future. Most of the time, coins obtained through staking NFTs can be reinvested into other yield-generating protocols.
By earning NFTs, you can put your idle tokens to work in a staking farm, generating additional value in the form of NFTs and bypassing the tedious and potentially costly purchasing process.