Step-By-Step Guide To Earning Passive Income Via NFTs :
Unsurprisingly, NFT creators will be interested in other means of making an income. With the instability of the crypto industry, and the general drop in the value of most NFTs, earning a form of passive income is a viable opportunity.
For NFT creators and enthusiasts, more than the everyday use of NFTs as a digital asset, there are a few ways to earn passive income via NFTs.
Ways To Earn Passive Income Via NFTs
The phrase, passive income implies that money can be earned without too much effort. Here are the top four ways with a step-by-step guide to making a passive income via NFTs.
1. Earning NFT royalties:
Earning royalties on your NFT is one of the most popular means of making a passive income via NFTs. This method allows you to earn even when you no longer possess your NFT. Anytime someone uses or sells your NFT, they will have to pay you a certain percentage.
To earn NFT royalties, you will have to mint your creation into an NFT. After minting, you can sell your NFT and get credited automatically anytime it is resold or used.
2. Renting out your NFTs:
Play-to-earn games allow NFT creators or investors to rent out an NFT token. Renting out NFTs thrives because of the crypto gaming industry, where not all players can afford to own their NFTs to play games. A platform like OpenSea allows its users to rent out their NFT assets.
All you have to do is set out the lending rate and duration period for your NFT. The best thing is that it is all automated by smart contracts!
3. Liquidating your NFTs:
Being a part of an NFT liquidity pool also allows you to make money from your NFT creation. You need to locate a platform where NFT creators can pool assets together, which is deposited into a vault; for example, both CryptoPunk and Bored Apes have an NFT liquidity pool on the NFTX platform. You receive the platform’s native token valued at the price of your NFT.
Subsequently, you earn tokens from the NFT liquidity pool you contributed to.
4. Staking NFTs:
Like crypto staking, you can also stake your NFT and earn rewards. To stake your NFT, you have to pledge it to a blockchain network like Decentraland. Then you lock the staked NFT for a period known as the staking period.
After this, you can now receive staking rewards from crypto tokens. With this, you can swap, trade or sell your crypto tokens and convert them to your preferred asset.
One favourable thing about most of these avenues is that you still maintain ownership of your NFT while earning income passively. You should also know that the rarer your NFT, the higher your potential to make passive income.
NFTs provide a means of earning while still providing investors with an avenue to participate actively in the market. Several resources are now available to NFT creators to utilize their creations. Now that the NFT market is facing a slump, NFT creators don’t have to panic because they can earn with minimal effort.
In addition, as the market expands, we can look forward to more ways that emerge through which creators can earn passive income via NFTs.