Now only the lazy do not know what NFT is. This phenomenon has become a real mainstream in recent years and constantly continues to develop and make a profit. The owners of such well-known collections as Cryptopunks or Bored Ape managed to break a particularly large jackpot. Today, these non-fungible tokens are worth millions of dollars. What about other NFTs? Because they come out every day. What to do to make money on such collections and at the same time not be very active? In this article, we will talk about passive types of income on well-known digital art tokens.
According to experts in this matter, there are several ways to get yourself a passive income on NFT projects. The list of the Top Ways To Earn includes:
Investments in collections and individual tokens. Following the example of other entrepreneurs, it can be seen that by creating due attention to a certain NFT and hype around it, within a year or a couple of months, its value can be increased tenfold or more. However, due to the instability of the market, it is difficult to predict what will increase in price, and what will remain in place or even become cheaper. Therefore, buying tokens and waiting for the price to rise is one of the risky, but still working methods.
Free minting. When a new NFT hits the market, the creators take care of advertising and promotions. It is in their interests to expand the community of potential buyers as much as possible. Many distribute tokens completely free of charge, others exchange them for advertising in promoted accounts on social networks, subscriptions to their page, and so on.
Promotion in Telegram channels. NFT projects offer owners of large communities cooperation on mutually beneficial terms. It is enough to throw an ad or post to get a “couple” of tokens for free.
One of the most popular, profitable, and sought-after ways to passively earn on NFTs is staking. Tokens are blocked in a special vault, and for this, the owners receive an excellent reward. Not all collections have this option, so you should check the availability of the staking feature before purchasing.
Another suitable method of earning without activities is the liquidity pool. The most popular service to release liquidity from NFTs is NFTX. Not only the NFT is thrown off here, but also the Ethereum cryptocurrency. For their investments, users receive commissions from operations carried out in the pool.
Important! It is unnecessary to choose one of the methods - if you have many or several non-fungible tokens, you can scatter them over several options and see where there is more profit.
The creator of digital art should receive some percentage of the sale of their tokens. After the first transfer of the NFT to a new owner, the person who created it has the opportunity to earn on subsequent realizations of the same token. After all, the original owner remains with the digital artist or musician. Such a percentage is not limited in time but is set by the first owner (creator). Each resale will be credited with the specified amount.
The final amount of percentage of royalties will depend not only on the wishes of the manufacturer but also on the platform on which the lot was first exhibited and subsequently resold. Some systems offer excellent rates in the form of fifteen percent, while others reach a maximum of two and a half percent. This must be taken into account to earn more in the future.
Royalties are the Best Passive Income NFT since nothing needs to be done after the first sale and setting the percentage. An artist or musician simply skims the cream every time and continues to create, while having good finances for his work.
One obstacle to wealth through royalties is price volatility in the NFT market. The cost of items is constantly fluctuating, which affects the final percentage of royalties. Therefore, you should pay close attention to this factor when setting the timing and royalty rate for each token.
An interesting way to get some money from your collections or an individual NFT is to rent it. Many tokens have unique properties and benefits. Especially when it comes to game animals translated into this blockchain format. Rent out special characters to other players for a while and get rewarded for it!
Another type of rental item is NFT real estate, which many also do not mind renting for a certain fee. There are many options and they should be used if you have tokens.
Several platforms are offering rental services for your NFTs. On such trading platforms, you can immediately exchange the token for the cryptocurrency of interest.
The uniqueness of non-fungible tokens lies in the fact that each has its entry in the blockchain indicating the owner and other information. Many collectors have begun selling commercial rights to use NFTs, opening up another passive income opportunity.
By comparison, most blue-chip NFT projects often provide their members with access to commercial rights. With commercial rights, members can sell merchandise and print NFT images they own in a collection.
What does it give? By becoming a member of any commercial rights project of any size, you can start releasing merchandise featuring your token, and sometimes the entire collection that you have invested in. You can also name your business, car, or whatever! No one can limit you! And you can transfer these rights to another person by licensing your commercial right.
An ideal example of such a profit is the licensing of "Bored Monkey", which became the "face" of a cannabis company in the United States. And such cases of licensing are multiplying every day. Do not miss this opportunity to earn money, if you have it.
This article presents current and working ways of passive income on NFT projects. It is necessary to familiarize yourself with each technique in more detail and start with small investments, and volumes.
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