Check Out These Three (3) Other Ways To Earn Passive Income With NFTs Besides Selling

The purpose of investing is to build wealth, and one of the best methods to accomplish it is through passive income. Passive income simple means making money with money, it can further means making your money work for you by just investing. You can invest in different assets, one of them is NFTs.

I'm sure you're excited by the idea of earning passive income from NFTs; don't worry, you'll get a better understanding if you keep reading.

Since NFTs are now in high demand and selling with high pace, selling isn't the only way to generate passive income on NFTs.

The reality is that blockchain-based assets like NFTs can be used to earn passive income in multiple ways. I'll show you how to easily earn passive income from your NFT collectibles in three different ways.

Before I go into the ways, let me quickly explained what NFT is and how it works.

NFT an acronym for non fungible token, they are blockchain-based digital assets. They're unique and irreplaceable, it's simple a unique way to hold digital assets like artwork, videos, memes and music.

How does it work?

You can, for example, trade one HIVE for another and get the exact same HIVE. You can't expect to get the same NFT if you exchange one for another; they'll be different. Its value comes from the fact that it is unique and irreplaceable.

Now let talk about the 3 ways to earn passive income with NFTs;

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Renting Out NFTs

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Several P2E gaming platforms allow NFT owners to earn passive revenue by renting out their digital cards or assets to other NFT players. All rental terms are governed by smart contracts. NFTs can be rented for a low cost and used by people on a short budget. Without having to sell their NFTs, those who have them can generate passive income from the rentals. Rather than waiting for years for an NFT to appreciate in value, you can now rent your NFTs and make daily profits.

A P2P game like Spliterlands allows players to rent out cards (NFT) and earn passive income on the rented cards.

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Providing Liquidity

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There are several platform that rewards users for providing liquidity on NFTs, users generate passive revenue by supplying your NFTs to the liquidity pool. A liquidity pool on the other hand is a collection of of digital assets locked by smart contracts. This locked tokens are used as liquidity for swapping or loan for borrowers. The interest paid by the borrower and the fees paid for swapping goes to the liquidity providers.

A Liquidity pool platform like NFTX allows users to supply NFT as liquidity and earn passive income in returns.

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Staking NFTs

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The last on the list is NFT staking, there are several platforms that allows NFT holders to lock their assets and earn incentives, this platforms are DeFi, which uses and rewards users using the Proof of Stake (PoS) method.

The rewards are always based on APY, and the amount of NFTs users intends to lock, the APY are always different depending on the platform and the type of NFTs staked, rewards are also given in form of the platform native tokens, which is paid, daily, weekly or every 30 or 90 days depending on the platform.

Spliterlands is another example of platform that allows users to stake their NFTs and earn passive income.