Five ways to earn from your NFTs

Non fungible tokens have been thriving in the market for some time now, and it has grown as a part of the crypto industry as well in just 2021. The total amount spent on purchasing NFTs has surpassed $12.6 billion in 2022 alone, which is a huge rise from when it started out at $162.4 million to begin 2021. 

A single process of minting an NFT on Ethereum is already expensive at $98.69 in gas fees. Minting a whole collection is already a different task as it costs much more than a hundred with a lot of possible adjustments depending on how rare the collection is.

To make up for these costs, a lot of investors and creators try to offload their NFTs on secondary marketplaces instead such as OpenSea. There are many ways how can you earn money with NFTs, aside from selling them for a higher price than usual.

The possibilities are endless with NFTs, and now people look to continue working all the way with it and hopefully earn from it as well. Here are five ways to earn from your NFTs:

Rent out NFTs

The best way to earn passive income is by renting out your NFTs. Having one of those in high demand, such as trading card games, will have a huge impact on their chances of winning. The deal between two trading parties is governed by smart contracts and NFT users have all the right to set the duration of their rental agreement.

The best example of a platform that allows this method of trading is reNFT. This allows lenders to set max borrowing periods, set daily rates and so on. Most of the rates for renting are set at 0.002 and 2 wrapped Ethereum on average.

NFT royalties 

There is a technology that powers NFTs and allows creators to set terms that may impose royalty fees when the NFTs change hands on the secondary market. In other words, creators can make a lot of passive profit even if they sell their creations to collectors.

On that note, creators can earn a share of the sales price of the NFT in question right away. For instance, if the royalty is set at 10% for any digital artwork, the creator will get 10% of the total sale price each time their artwork is resold to a new owner.

It is also wise to take note of the percentages when minting NFTs. Smart contracts govern the whole process, which means that as a creator, you do not need to enforce your royalty terms or even track payments since all of these will be automated.

Stake NFTs

NFT staking is the process of locking away digital assets into the DeFi protocol and turning it into a smart contract to generate a yield. This process relies on a Proof of Stake (PoS) mechanism where users can be rewarded based on the number of NFTs they staked and their annual percentage yield (APY).

In most cases, part of the rewards given to stakers is denominated in governance tokens. These protocols power the holders with voting rights over the future growth of their ecosystems. It is even possible to at least reinvest coins earned from staking NFTs into other yield protocols.

Provide liquidity

With the current integration of NFTs and DeFi, it is also possible to at least provide liquidity and even get NFTs in return to build your spot in a liquidity pool. For example, providing liquidity on Uniswap V3 will have an automated market maker (AMM) issue an ERC-721 token, which is an LP-NFT. 

This provides details of the total amount locked in the pool. Other data etched into the NFT is the token pair that was deposited along with its symbols and the pool address.

Adopt NFT yield farming

NFTs are now a part and even considered as a core component of AMMs, which means that users can also farm for yields with the use of NFT-powered products. Yield farming is the method of leveraging a lot of DeFi protocols to come up with the highest possible yield with all the digital assets you have.

Learning how can you earn money with NFTs is a huge plus. Adopting NFT yield farming should be a huge boost since it unlocks a layered income-generating system and it works well to help you thrive with more profit.