What is NFT Staking and How To Earn Money from it?

What is NFT Staking and How To Earn Money from it?

Staking NFTs simply means putting your unique token to work for you on the blockchain. A lot of platforms or protocols support NFT staking, where you are given rewards and can earn passive income while still being the owner of the NFT. 

Just like in crypto staking, where proof of stake (POS) validators use their coins to stake them on the blockchain to earn different rewards, NFT staking works in a similar way.

How to Earn with NFT Staking

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To earn rewards using NFT staking, you will first need to hold NFTs in a crypto wallet that is compatible with various platforms. Then, you can send NFTs to the staking contract and easily lock them for a given period. As soon as the staking platform gets your NFTs, it locks them and you start earning rewards.

The rewards will vary from platform to platform depending on various conditions. Right now, you can stake your NFTs on plenty of NFT staking platforms. Gamers can also earn rewards by participating in NFT games like Axie Infinity, Polychain Monsters, and a lot more. 

Where To Stake NFTs

All NFT platforms have their own rules, and some of them may even require you to provide money in the form of tokens to begin your staking journey. Here are some ways you can stake your NFTs easily and smartly.

DeFi Platforms

The most popular choice is DeFi platforms. A lot of DeFi platforms support NFT staking, and now you can use your NFTs to get the platform’s native token just to receive NFTs as rewards. The reward rates are solely dependent on the total number of tokens staked. In other words, the greater NFTs you stake, the more the rewards will be.

NFT Staking Protocols

A lot of NFT protocols have been built specifically to let users stake their NFTs and earn from them. The process is simple. You stake your NFTs and in return, you can earn trading fees from their platforms. NFTX is a great example of an NFT protocol that lets you stake NFTs easily.

NFT Games

A lot of NFT games allow you to stake your rewards for other users. It is one of the easiest and most effective ways to earn money without having to deal with complexities. Common examples of games like these are MOBOX and Zookeeper. By playing games, you’ll not only be able to earn rewards but also enjoy the gameplay, making your experience tenfold better.

Final Verdict

If you’re new to NFT staking, you should take the free route and not invest a lot of money. Just experiment with various games and methods to have fun. And while you’re experimenting, you’ll find several platforms, games, and networks where you can invest some of your time or money to gain passive income.

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