NFT staking is the modern way of making passive income through your digital wallet. NFT is the digital assets that you use to stake in NFT staking market. The NFT staking trend is getting more popularity ever than before as it is much better than liquid assets that cannot create cash flow for you.
However, while utilizing your NFT assets you can generate cash flow on regular basis. Due to the high demand of NFT staking in the market, we decided to explore this one for you, as we are going to discuss it in detail. So, keep reading to consume all information related to NFT. So, let’s dive into it.
What is NFT Staking?
NFT Staking is putting your cryptocurrency in an NFT blockchain network and getting a reward for doing it, but the owner does not have to sell its digital assets while it is staked in the NFT market.
NFTs are staked in different staking platforms to get rewards on regular basis. It is much better than depositing your money in the bank. When you deposit your money in the bank, you will get only a small amount of interest over it while in the NFT staking, you will earn passive income by depositing your NFT, not your money. This is the reason why people are more inclined towards making digital assets, not liquid assets. Do most of people have a query that how much can you earn by staking NFT? By staking one NFT, you can get 5 DAWG token rewards per day.
How does NFT Staking Work?
NFT staking is a new modern money-making concept in the market. The working procedure of NFT staking holds on a general idea that is as follows:
- You have to stake your NFT in any NFT staking platform such as the Defi platform. And you have to make a contract before staking.
- All depositors will earn regular rewards according to the protocol set up in which they stake NFT.
Is it profitable to Stake NFT?
NFT staking is worthy for sure, but before you start staking your NFT, you should consider the following factors:
1) Annual NFT APY:
What do you think, how much return you will get while staking your NFT? Well, it depends on the platform where you stake. And you should also check the annual NFT APY before you stake and buy NFT. Because every platform does not provide you with lofty interest rates or rewards. So, it’s crucial to check some things before you invest in your digital assets. Because the interest rate can fluctuate.
Below is the table that describes the higher staking return for very rare NFTs:
2) Collection Cost of NFT:
Yes, experienced NFT traders know how to earn more profit from NFT staking. As they know when they have to invest their NFTs and when they have to buy new NFTs.
You can easily earn rewards by just staking your NFT, and you also remain the owner of your NFT, you do not have to sell it to earn rewards or money.
Timing is the most precious thing in this trading, but sometimes most seasoned traders take wrong decisions.
3) Cryptocurrency Cost Fluctuation:
Besides the price of the NFT collection itself, you have to keep in mind that cryptocurrency is related to NFTs that are unstable.
For example, if you have purchased an NFT for 1 ETH when Ethereum is $3,000, and sell for 1.1 ETH when Ethereum is $2500, you are going to face a loss.
4) Check the % of all Staked NFTs:
If you are a new NFT trader and you are reluctant to stake an NFT then you should check the % of all staked NFTs to have an overall idea. If there is a higher number of NFT owners, it will indicate a positive sign for you to buy and sell NFT. And yes, another thing you do not know is that you have to deposit your NFT for a definite period such as in lockup.
5) NFT Lockup Period:
Some NFT staking platforms do not have a specific lock-up period time for their traders. The lock-up period time varies from days to years. You can choose your lock-up period up to your needs. And you can create a regular passive income source in this way easily which was not possible in the past.
6) Community Contribution:
Some NFTs staking platforms contribute huge rewards to their native cryptocurrency traders. These rewards differ from state to state, such as in some states, the community gives the power of voting on their platforms to their NFT traders.
7) Irregularity in Cryptocurrency:
The irregularity in the cryptocurrency can have a notable impact on the value of NFTs and also on the rewards received from them. So, if you are a new NFT trader then, you should also have a look at this factor.
Where you can stake your NFTs?
There are many NFT platforms available where you can stake your digital assets and earn rewards. Some of them are as follows:
- Band Royalty
- Kira network
- Doge Capital
- Band NFTs
- Polychain Monsters
All these platforms are best to earn more rewards and create a passive way of income. It is a good idea to come out of your financial crunch easily.
Is it worth staking NFT?
Yes, it is worth it, as you can earn a lot of money in the form of passive income from staking your NFTs in compatible NFT platforms. The more you hold on to your NFTs, the more you will generate NFT staking rewards. But you should have your digital wallet along with NFTs to make money this way.
Now, you have all the basic information about NFT and NFT staking. So, it’s easier for you to take the right decision and make passive income without selling your NFT. Is it worth reading for you? If yes, share your experience in the comment box below.