Simple Ways to Make Passive Income with NFTs
The business rule of thumb maintains that 80% of outcomes come from 20%. When it comes to NFTs, research published in Nature found that 10% accounted for 85%. That means there are thousands upon thousands of these tokens (non-fungible tokens) sitting in digital wallets gathering dust with only a few people trading them regularly – isn’t this something? Some might say “no” but I’m telling you: The principal tells us so!
Renting NFTs
NFTs can be rented out in a passive income stream. The way it would work is you offer your NFT as collateral and receive periodic payments in cryptocurrency or cash. The renter then has use of your NFT, but they cannot sell it without your permission, so you always maintain control. This is a great way to earn passive income from an NFT you may not be using, and it’s also a good way to get your NFT in front of more people and generate some buzz around it.
Lending NFTs
Another passive income stream you can set up with your NFTs is lending them out. This is similar to renting, but instead of offering your NFT as collateral, you actually lend it to someone for a specific period of time. The great thing about this is that you can lend your NFT to multiple people at once, which can generate a decent passive income stream for you.
Passive income NFTs with staking
Staking is a process where you lock up your NFTs in a smart contract and earn interest on them. The way it works is that you put your NFTs into a pool with other people’s NFTs, and then you earn a percentage of the total value of the pool based on how many NFTs you have staked.
This is a great way to earn passive income from your NFTs because you’re not really doing anything other than holding onto them. And, since you’re earning interest on the total value of the pool, your passive income stream can grow over time as the value of the NFTs in the pool increase.
Royalties from your NFTs
If you create digital artwork, music, or other creative content, you can upload it to a platform like Rarible and mint an NFT for it. Then, you can sell that NFT and earn royalties every time someone buys or sells it. This is a great way to passive income from your creative content, and it’s also a good way to get your work in front of more people.
