NFTs (non-fungible tokens) are digital assets that have exploded in popularity recently. The exchange of NFTs for millions has piqued the interest of individuals who aren't actively participating in the blockchain ecosystem.
The NFT community buys, sells, and trades a lot of things over the internet. However, non-functional commemoratives are only the tip of the iceberg for tokenization. It'll be intriguing to witness how NFTs evolve and provide value in the nascent Web3 era since they'll be so important.
People may now create passive income by holding NFTs as blockchain technology advances. In this instance, a well-designed specialized website would be really beneficial. An NFT developer can help you create a WordPress website. Take a look at some of the best NFT passive income examples below.
1. Renting NFTs
The most effective approach to creating a passive income is to rent out your NFT. It allows you to earn more money from your art without selling it.
You may make extra money with your NFTs because even if you are not selling your NFTs, you may gain from them. Renting platforms like IQ Protocol changed how users interact with our digital assets, utterly disrupting the NFT landscape. It allows token holders to rent out their NFTs to other users. Both sides gain from the rental agreements, which are based on a predetermined period of time and a predetermined fee.
You just need to sign up for a top-rated renting platform with a good reputation and start uploading your assets right away so that others may hear about them sooner rather than later.
The procedure for renting an NFT is straightforward: reach an agreement with the digital asset owner you wish to rent and then temporarily move the token from their wallet to yours. You can do whatever you want with this non-fungible token until it expires, or you return it to let another person use it.
2. Staking NFTs
Staking is a type of cryptocurrency that allows you to commit assets to a blockchain network in exchange for incentives. Many blockchains need staking, and transaction fees fund rewards to safeguard the web.
You may also contribute NFTs to a blockchain network by staking them. You can't sell or move your assets across wallets while they're staked. However, you may anticipate financial benefits in the form of bitcoin prizes if you do so.
One of the advantages of staking NFTs is that you keep complete ownership. However, depending on your digital assets, you may lose out on a chance to sell during a market upswing.
3. Royalties from NFTs
Royalties are a frequent idea in the arts, cinema, and music industries, and they're also a regular subject of contention. Whether you're a successful musician, blockchain technology makes it simple to collect royalties from NFTs.
Iman Eurpe, a singer-songwriter, told Bloomberg that she made $60,000 in four months by selling NFTs of five tracks and a music video. This compared well to the $300 per month she was getting from streaming sites, but it also meant that royalty payments accounted for the majority of her revenue.
You may create NFTs in various mediums, including visual, audio, video, and more, even if you're not a well-known artist. Once you've posted your work online and established royalty agreements, you can sit back and watch your NFTs generate passive money.
4. Adopt yield farming enabled by NFT
Users may now farm for yields utilizing NFT-powered goods, since NFTs are quickly becoming a fundamental component of AMMs. Return farming is the practice of combining several DeFi protocols to create the maximum potential yield from your digital assets.
If you use your passive income calculator, you'll notice that the returns on NFTs are far larger than typical passive returns from stocks or real estate. If you use our suggested tactics, you'll be well on your way to automating your passive income