Most crypto enthusiasts are familiar with staking cryptocurrencies, a way to make an extra return on your investment. In addition to staking cryptocurrencies, you can now also make extra returns on your non-fungible tokens (NFTs). You can stake these on the platforms available for this purpose, which you can find within different NFT niches. With the discontinuation of NFTs, these unique tokens have become a lot more attractive!
It is becoming more and more popular to find a way where you can earn money without working for it. This way of earning money is also called passive income and ensures that you have time for other things. Previously, this was possible by saving in a savings account, where wealthy people could live on their savings interest. This is also a passive income, which is also called renting.
However, nowadays this is no longer possible. You barely receive any interest on the money in your savings account, while in some cases you even have to pay on your own savings! With NFT staking, an alternative form of investing has formed, which you can discover all about in this article!
How exactly does NFT staking work?
Because both cryptocurrencies and NFTs are tokenized assets, both options can be staked. However, this is not possible on every platform for both cryptocurrencies and NFTs. The blockchain on which the tokenized asset is located, for example, plays a role in this. So at first, the discontinuation of NFTs is very similar to the discontinuation of crypto, but nothing could be further from the truth.
This makes it easy to sell your crypto coins to another party, and you can also purchase them very easily. There are millions to trillions of different coins, with thousands to millions of people trading these coins. However, with NFTs, you are looking for specific buyers who would like to buy exactly that one NFT. This makes it difficult to sell NFTs, which can actually be positive for NFT staking. If you don’t get your NFT sold, if you have the right NFT, you can still make a profit by stopping the NFT.
When staking NFTs it’s important to have a crypto wallet. After all, you need a safe place where you can place the NFT after the sale. The underlying network is important here. Your crypto wallet and the NFT itself must be able to work well on the blockchain that you would like to use. Despite the differences, the actions of staking NFTs or cryptocurrencies are similar. On your suitable platform, look for the staking section, and then stake the NFT in this section.
Rewards for discontinuing NFTs
The rewards for discontinuing NFTs can be very different. For example, it is possible to earn certain tokens, but it is also possible to earn NFTs. In addition, the frequency of the payout is also different. It is therefore wise to thoroughly investigate these aspects beforehand. Regardless of the reward, there is always a way to convert this reward into fiat money. If this is you, you can convert your crypto and NFTs into dollars!
NFT staking platforms are decentralized autonomous organizations (DAOs), where the NFT holders can stake their NFT. By staking in this DAO pool, also known as staking pool, holders can then participate in managerial tasks. This allows you, for example, to make proposals within the DAO, or to vote on other people’s proposals. If you want to strike NFTs and go for influence or hard knocks is completely up to you, whereas a combination of the two is also possible.
Can you earn passive income by staking your NFTs?
Just like with cryptocurrency staking, you can also earn passive income by staking NFTs. All you need are the right NFTs and a crypto wallet. Staking your NFTs is a new way to earn passive income that many investors have not yet discovered. As with other ways to generate passive income, when you want to retire from NFTs, you will be making an upfront investment. However, this investment gives you a return for which you do not have to do anything! Of course, the necessary research and investment are important beforehand, but after that, you can start reaping the benefits.
NFT staking platforms: where can I stake my NFTs?
Staking NFTs can be done on many different NFT staking platforms. That is why highlighting one platform does not say everything. To give you a better idea of the different NFT staking platforms, I will walk you through four different platforms below. You can discover that exchanges are actively engaged in NFT staking, but many games are also happy to facilitate this setup!
Binance NFT PowerStation
If you would like to invest in Binance Fan Tokens, the Binance NFT PowerStation can be a good NFT staking platform. On this platform, NFT holders can support their favorite sports teams by betting on these NFTs. As a reward for this, you will receive Binance Fan Tokens. The Binance platform is one of the largest platforms worldwide, with perhaps the most services that users can use. This also includes an NFT marketplace, but also the discontinuation of the NFTs.
The Binance Fan Tokens are seen as nuts tokens, which are affiliated with a particular sports team. When you own these tokens, you qualify for various privileges. For example, you can get priority when buying match tickets or you can have a say in certain decisions that have to be made at the sports club. The Binance Fan Tokens are mainly popular among sports clubs, but artists and other famous people or groups can also use them. As long as you have a large following, Binance Fan Tokens can be an interesting option for celebrities.
MOBOX (MBOX)
Besides the NFT collections where you can stake NFTs, MOBOX (MBOX) is another example of NFT staking. MOBOX’s NFT staking platform belongs to this blockchain game. MOBOX’s game takes place in the metaverse, which is also referred to as the MOMOverse by the game itself. Each MOMO, the character in the game, has its own qualities. These qualities are randomly generated, which also provides uniqueness. The NFTs of this game can be found in this metaverse. In addition, the gaming platform has its own NFT marketplace, where you can also trade the NFTs.
When you stake your MOMO NFT on the platform, you can receive a reward for doing so. You will be rewarded with the MOBOX governance token, where the amount of the reward depends on the number of staked MOMO NFTs. In addition to quantity, quality also plays a role. Each MOMO has its own powers, which can also relate to the staking rewards.
Doge Capital (DAWG)
Memecoins are doing well with many crypto investors, which of course makes a golden combination with NFTs. In 2021, both niches shot through the roof, with the NFT collection Doge Capital being a wonderful combination. Doge Capital is one of many NFT collections where you can stake the NFTs and receive rewards for doing so. The collection consists of 5,000 non-fungible tokens and is located on the Solana blockchain.
Owners of these NFTs can receive crypto coins daily before staking their Doge Capital NFT. They can get the coin DAWG, the token of the Doge Capital collection. This token is also available on another platform of Solana, which is Raydium. Doge Capital in this case is an example of the many NFT collections that also have their own token, which you can earn by staking the NFT of the relevant collection.
Splinterlands (SPS)
Splinterlands is one of the popular names among the many blockchain games, which a lot of players enjoy and earn money with. Splinterlands is a card trading game where you compete against different opponents. Basically, you can compare the game to Pokémon, where you can use different types of cards during a battle. At Splinterlands too, cards can distinguish themselves from each other due to different skills, powers, and levels.
These cards are NFTs and therefore easy to trade, but also useful for staking. The coin of Splinterlands, called SPS, is located as a DAO on the Binance Smart Chain (BSC). This makes it possible for enthusiasts, for example, to bet their tokens and thus bet on bets related to Splinterlands. You can bet on certain ranked battles, but you can also use liquidity pools and the DAO governance voting pool.
The best platforms to stake your NFTs
If you make the choice to stake your NFTs on a platform, it is important to have a goal in mind. To find the best platforms for your investment in non-fungible tokens, you need to know what you want to achieve and where the opportunities lie. In addition to a goal, good market research is therefore very important. You can see from the examples above that there are different types of NFTs that you can stake.
For example, would you like to make optimal use of gaming NFTs? Then it is useful to think about this before investing. The NFT must therefore be built on a popular blockchain and have a large community so that the demand is high which in turn makes it worth to stake the NFT. In addition, the staking rewards are important, so you should also include these in your research. With NFT staking, the staking and the reward are of course interesting, but if the users of the game lose interest and the value of the NFTs drops, you may end up making a loss. This is one of the risks of staking NFTs, which you should always take into account.
The dangers of NFT staking
Often only the benefits of staking NFTs are highlighted, but there are also dangers that you have to watch out for. The staking of NFTs can entail several dangers. As with cryptocurrency projects, it is possible to perform a rug pull. Scammers pull the plug on the projects and leave everything behind, except the investment they received. As a result, holders of the NFTs are left with worthless tokens and the founders have embezzled a considerable amount of pocket money through fraud.
In addition, the volatility of the crypto market remains an important danger. When a bear market begins but you have locked your NFT for a long time, you cannot sell your NFT in time and limit the losses. Therefore, when staking your NFT, think carefully about the underlying coins, which ultimately affect the crypto value of your NFT.
Conclusion
NFT staking is a new possibility after the staking of cryptocurrencies to make extra return on your investment. If your goal is to increase your portfolio for the long term, this method is definitely worth considering. In the short term, there may be some risks involved. For example, if the price falls quickly, you may have to sell your investment at a loss. For long-term holders, this risk can be a lot lower, if you invest in the right crypto gems!
