Ways To Monetize Your NFT in 2023
The NFT landscape has evolved significantly over the past year or two, as new features have allowed various collections to integrate more fully into the Web3 ecosystem.
As a result, NFTs are becoming an important part of the Metaverse and many on-chain video games, for instance.
Such advancements have created new opportunities for making money with NFTs in 2022. Keep reading to find out how to do so.
NFT Staking
As a result of greater integration with DeFi, NFTs can now be staked. Similar to staking crypto tokens, NFTs can be deposited into staking platforms where they are held for some designated (or indefinite) amount of time.
For the duration of the period its staked, the NFT and its capabilities are not accessible to the holder who deposited it. In return the holder gets token yields proportional to the amount of NFTs they staked and to the length of time they were staked.
Several NFT staking platforms let holders stake any NFT to earn tokens. Tokens yielded from staking can, like any other tokens, be cashed in for fiat currencies on other DeFi platforms. Some examples of DeFi platforms with NFT staking include:
NFTX and KIRA accept any NFT for staking, while Only1 is an NFT marketplace with a staking function: any collection sold on Only1 can be staked on it too.
Other NFT staking sites require you to buy a specific NFT native to the platform. For instance MetaBlox NFTs (but no other collection) can be staked on MetaBlox’s staking site for daily $ROAM token yields that will become available for withdrawal after the project’s token listing in 2024.
Gaming With NFTs
With numerous on-chain video games now available, PlayToEarn projects have become a common way of making money with NFTs. In these blockchain applications, users can earn income by winning in-game assets like armours or tools, which take the form of NFTs. Like any other, these NFTs can be sold for cash.
For instance, Axie Infinity is an Ethereum-based video game whose users must collect monsters to battle each other. These monsters–or Axies–are NFTs which players can mint and sell on NFT marketplaces. Many other NFT-based games with similar PlayToEarn models are also available.
NFT-Fueled Yield Farming
The profits earned from NFT staking can be compounded by generating further yields from those profits: token yields from staking can themselves be temporarily deposited to DeFi platforms in order to earn ‘interest’ on them.
DeFi platforms are developing increasingly sophisticated and lucrative ways to invest tokens, such as with a tool that optimizes yields by automating deposits and withdrawals from liquidity pools.
While large banks typically offer interest rates of one to five percent on long-term deposits, some token liquidity pools on DeFi platforms offer returns of fifteen to twenty percent (of the initial token investment). This means a deposit of one hundred tokens, for instance, could produce a return of an extra fifteen to twenty tokens. Some of the best platforms for liquidity pool yield farming include:
NFT Utilities
New types of NFT features that create ongoing value are being developed every day. One such utility is cloud-mining, which has arrived as a result of the integration of NFTs with blockchain networks and platforms.
For example, the MetaBlox NFT earns holders ongoing tokens by linking to a crypto miner which provides WiFi for high-traffic areas. The more connections made via a MetaBlox miner, the more tokens it generates and sends to the holder of the linked NFT.
In addition to cloud mining, the NFT’s blockchain network connectivity enables other utilities, such as staking and the ability to receive rewards over airdrop. The NFT is currently available on Binance.
NFT Renting
NFTs can be rented out to others who want to benefit from their utilities or the assets they hold. The NFT renting process is surprisingly straightforward, as it functions similarly to lending real estate and collecting rent.
Renting out an NFT simply entails lending it to someone else for a designated period in exchange for money. Afterwards, ownership of the NFT is returned to the lender. reNFT is one Web3 platform that’s currently implementing NFT-rental solutions based on smart contracts.
NFT Royalties
Although they can’t be replicated, it is possible for NFT creators to earn ongoing royalties from collections they’ve already sold. NFT royalties usually come from secondary sales, where the original creator receives a percentage of the sale price each time their NFT is re-sold. Creators must establish such terms, however.
These terms can be encoded within the sales records (smart contracts) of NFT marketplaces so that creators automatically receive royalties whenever their collection is resold.
NFT Trading, Investing
Many individuals treat NFTs like stocks to invest in temporarily and then sell at a higher price. For example, a Beeple original digital art piece was flipped for almost a thousand times its initial price! Since NFT values can skyrocket and then decrease again fast, it’s important to pay close attention to their price fluctuations–when investors do this and sell near a collection’s peak-value, they can make huge profits. For thousands of NFTs to invest in, visit these marketplaces and NFT platforms:
Monetize Your NFTs
The advancement of Web3 and blockchain applications has made 2022 the best time yet to monetize on NFTs. Between NFT utilities, investing, and sales, anyone with a blockchain-connected wallet and traditional internet connection has a good shot at substantially increasing their monthly income.
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