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NFTs That Pay You - Best Passive Income NFTs
In a world that can be subjected to economic recessions and possibly depressions with global health pandemics and wars, stocks alone can be an unstable environment. NFT creators are always trying to add value to existing and upcoming projects, and a way to earn money in a passive way is one of them. Let’s learn more about the best passive income NFTs.
How to Earn Passive Income From NFTs
How exactly do NFTs earn you residual income? Do you just let them sit there and they somehow do the work? Let’s find out how your NFT could be making you some extra cash.
Staking
NFT staking is one of the top ways to make a passive income stream. You will require cryptocurrency that can be used for staking to make this happen. It is similar to a savings account where you would leave the crypto token account meant for staking for a set period.
In doing so, you could earn an extra percentage (around 5-10% in most cases), but just be aware that the staking project pays in tokens in most cases.
Renting
Renting NFTs is also a popular way to earn residuals, but it is a new concept that is still under development. If the NFT you hold has utility, such as game use, or it is needed for a specific event or NFT drop, you will be able to rent it out at a price to other NFT supporters who may not have the capital to purchase your NFT but can use it for a set period to yield its benefits.
Earning Royalties
Popular NFTs can earn you a little bit of extra change if you set it with royalties. Every secondary sale of your NFT could give you a percentage of the sale price. This usually only pertains to the NFT creator and requires the royalties to be written into the smart contract.
Yield Farming
To put it simply, yield farming is similar to staking. You earn a yield on your digital assets by staking in a DeFi trading or lending pool. The purpose is for your assets to act as a liquidity provider.
Liquidity Pools
A liquidity pool is a pool of digital assets gathered by multiple investors. The pool will use the assets for certain purposes such as charitable deeds and reward investors with passive income.
Top Passive Income Earning NFTs
The below NFT projects are the best ones to look at if you’re keen on earning passive income.
CyberKongz definitely takes the first spot on the passive income NFTs list as it is the first NFT to leverage coins or tokens to create residual income. The traditional 8-bit NFTs are modeled to look like gorillas, or kongs, and the collection consisted of 1000 NFTs released in early 2021.
The native token for CyberKongz is $BANANA, and holders of the original 1000 will earn 10 $BANANA a day for the next decade. The tokens also have utility aside from possibly going up in price and exchanging for a lot of fiat in the future.
The tokens can also be used to add traits and to grow baby kongz in future drops.
Metaverses (virtual worlds) are very effective places to earn residuals from NFTs. Decentraland is one of the first, most popular and most expensive metaverses right now. NFT holders purchase land parcels (digital land), on which they can build their own environment and digital experience.
Decentraland is ever-evolving and improving, and as of now players can hold events on their own land, create establishments and hire staff, and rent out their land parcels. These are all ways in which to earn residual income in a Decentraland.
You can also decide to flip your virtual land when the time is right and make a lot more than what you paid for it from the sale. Decentraland land parcels went for maybe $20 back in 2017, and now they can go for thousands and even close to millions depending on the location.
Read more: How to Make Money in Decentraland
Sandbox is another metaverse we have to mention for passive income earning. Like Decentraland, you can purchase virtual land in the digital world where you can become a digital landlord and rent out your mansion the way you can in real life.
There are tools within the platform to allow users to create games, various experiences and attributes. This is also a platform where you can take advantage of staking with the $SAND token.
The Bored Ape Yacht Club (BAYC), perhaps one of the most famous NFT collections out there also provides various opportunities for investors to make money. Bored Ape had a lot of hype prior and during its release and the average ape in the collection went for around $200, but that is a far cry from the hundreds of thousands it can go for as of now on the secondary market.
Many celebrities and high-profile investors such as the likes of Eminem own a bored ape. Can you imagine the royalties your ape can provide if you manage to get your hands on one or flip it? Staking is also available for BAYC holders.
Band Royalty is an awesome milestone for NFTs. If you are a music lover (who isn’t?) you can now earn royalties if you own a tokenized version of your favorite tunes! Many artists have songs on the platform including Beyonce, Rihanna and JT!
Owning royalty tokens also gives you access to the royalty pool for staking (periods from 90 days to 5 years).
Axie Infinity has to be one of the cutest digital nations out there with its lovable characters. You can say it is one of the most well-known games in the NFT space. If you like Pokemon or the concept of collecting characters, powering them up, battling and trading, then this is the platform for you!
Its native currency AXS has inherent value, which can also be staked. The Smooth Love Potion token is used within the game as currency but is now also worth something outside of the game.
Continuing on the lasting trend that is adorable characters and universes, we have MOBOX. It is a P2E (play to earn) platform with a few NFT games thrown into the mix. When you mint the MOMO NFT, the MOMO is automatically used in its staking pool. So, you’re earning passive income even if you didn’t want to (but who doesn’t?).
The residual income you get from staking is in the form of the native token $MBOX, which has value in the real world as well.
Looking for a platform specifically for renting and lending NFTs? Your wish has been granted with reNFT!
This is the platform where you can list your NFTs for rent, and outline the price, period and collateral if necessary. Think of it as a dedicated rental site for NFTs of any form. Once the price has been paid and collateral has been listed, the renter can use your NFT in any way they want.
Built on the Solana blockchain ecosystem, the Fox Federation is 7777 fox NFTs donning different outfits. The project allows staking of the fox tokens to earn the native $FOXY token. These tokens can be used for future drops and for the purchase of dens, which is real estate within Famous Fox.
You can also send your foxes out on special missions to recover treasure chest tokens which can fetch significant value.
FAQ
• What NFT will make me money?
NFTs that can generate passive income or increase in significant balue can earn you money. If you can stake, rent, set royalties, farm and use the NFT in a liquidity pool, then you can earn residual income from that NFT. You can also choose to resell your asset to make money from the difference in price you paid for it initially.
• Can you lose money in NFT?
Yes, you can lose money in NFTs. Like any investment, NFTs can appreciate in value, or they can decrease as well. There is still a chance to make money from these NFTs if you sell during the pump. Be aware that losses are entirely possible when you invest in NFTs.
Conclusion
It’s very exciting that NFTs have earning power now. Not every collection will allow you to participate in staking and other ways to generate passive income, but any NFT can be resold for a potentially higher price than you paid. They key is to do research before taking the plunge and hoping that the value of the NFT appreciates.
