4 Simple Ways to Make Passive Income with NFTs
*NEWARK, DE / ACCESSWIRE / April 1, 2022 / *NFTs are a near perfect example of the Pareto principle. The business rule of thumb maintains that 80% of outcomes come from 20% of causes. When it comes to NFTs, a research paper published in the Nature journal found that 10% of traders accounted for 85% of all transactions.
The principle tells us there are thousands of NFTs (non-fungible tokens) sitting in digital wallets gathering digital dust. Some traders might not yet have a large-enough collection, or enough time to take full advantage. Other traders might not want to actually sell their NFTs.
In 2022 there are many ways to make passive income with NFTs. Some require large investments of time, like minting your own art or music or buying up real estate in the Decentraland metaverse and building a space you later monetise. But there are simple ways to make passive income with NFTs too.
In this article we'll look at staking, earning royalties, renting and borrowing against NFTs.
*1. Renting or delegating NFTs*
NFTs already have use cases far beyond digital works of art. The world of online gaming has quickly adapted to NFTs, as they can replace the wearables, weapons and tools won or discovered in a gaming world.
For example, the ICE Poker online casino in the Decentraland metaverse is only accessible to users with an ICE Poker NFT wearable in their digital wallet. Prices for an ICE Wearable start at 1 ETH (currently $3,400) and so mechanisms have developed to allow owners to delegate to other players, earning a cut of all in-game rewards.
The advantage of renting NFTs is that smart contracts can automatically find you a renter and keep a secure, auditable and untamperable record. Passive income from your NFTs is paid immediately according to the terms of your agreement.
The downside of renting or delegating NFTs in the gaming world is that if a game loses popularity, so might your asset.
*2. NFT lending with EverGrow Coin*
One of DeFi's greatest contributions to crypto is the world of borrowing and lending. Crypto loans are typically accessed with a loan-to-value of 70-80% meaning you need to put more collateral down than you take out. But this helps to finance rewards for lenders to a protocol, creating a healthy ecosystem where both lenders and borrowers can make a profit.
EverGrow Coin will launch a new NFT marketplace in April 2022 that offers NFT lending. The mechanism lets users put up their NFTs as collateral - based on market prices and algorithmic assessments - in return for crypto loans. Through clever usage of the loan you could generate enough to cover interest payments while earning passive income from your NFTs.
The EverGrow Coin marketplace for NFTs is the first platform to allow NFT lending in this way. The platform is housed on the BNB Chain, which is faster and lower-cost than the Ethereum blockchain that houses the current biggest NFT marketplace of OpenSea.
*3. Staking NFTs to earn passive income*
Staking is a crypto mechanism where you pledge assets to a blockchain network in return for rewards. Many blockchains require staking to secure the network, and finance rewards through transaction fees.
You can also stake NFTs to a blockchain network. While your assets are staked, you can't sell them or move them between wallets. But you can expect incentives to do this in the form of cryptocurrency rewards.
One of the benefits of staking NFTs is you retain full ownership. However, depending on your digital assets you may also miss an opportunity to sell during a surge in the market.
*4. Earning royalties from your NFTs*
The concept of royalties is common in the arts, film and music industries - and also a common source of dispute. Blockchain technology offers an easy route into earning royalties from NFTs, whether you're a successful artist or not.
NFT marketplaces like OpenSea allow users to set their own royalty terms when minting new NFTs. Everytime someone sells your NFT or uses it according to royalty agreements, smart contracts will instantly execute a transaction to you.Royalties are commonly between 5-10%.
Singer-songwriter Iman Eurpe told Bloomberg last month how she made $60,000 in four months from selling five singles and a music video as NFTs. Not only did this compare dramatically with around $300 a month she was making on streaming platforms, the majority of her earnings came from royalty payments.
Even if you're not a musician with an existing fanbase, you can mint NFTs in many different kinds of media, including visual, music, video and more. Once you have listed your content online and set royalty agreements you can sit back and watch passive income with your NFTs grow.
*CONTACT:*
EverGrow Coin
contact@evergrowcoin.com
https://evergrowcoin.com
*SOURCE:* EverGrow Coin
View source version on accesswire.com:
https://www.accesswire.com/695691/4-Simple-Ways-to-Make-Passive-Income-with-NFTs