NFT (Non-Fungible Token) is the only cryptographic token that exists on a blockchain and cannot be copied. NFTs are usually located on the ETH blockchain but some of them can also be created on other blockchains like Solana.
Unlike cryptocurrencies, they cannot be bought, sold, or exchanged at the same rate. This is different from fungible tokens such as cryptocurrencies, which are identical and, therefore, can serve as a vehicle for commercial transactions.
NFTs can represent real-world items such as artwork and real estate. Recently, increased interest in NFTs has also been heightened due to their association with the metaverse . Metaverse real estate, in particular, has attracted the attention of multi-million dollar deals in platforms like Decentraland and Sandbox.
Today, the number of participants in the NFT market is increasing. Learn to get involved in the creation and sale of your NFTs with passive income from attractive prices. The global market volume of tokens increased 200% year-on-year (2021), to over $50 billion.
NFT coins are a form of cryptocurrency used to support NFT-based ecosystems. In most blockchain-based platforms you will find native NFTs. For example, SENSO is the currency in the Sensorium Galaxy platform. SENSO is used for all transactions for the metaverse and for enabling DAOs.
>> Read more: What Does Minting NFT Mean ? Everything You Need to Know
NFT coins are a form of cryptocurrency used to support NFT-based ecosystems
1. The Sandbox – SAND
Sandbox is a community-driven platform, users can monetize their gaming experience and voxel assets on the blockchain. There are several ways to earn passive income on the platform, like renting out their land. It includes business, entertainment, and advertising spaces.
Many people earn rewards in exchange for allowing others to use their land. Some people rent out their premises for business or other entertainment and advertising purposes. SAND is valued at $2.75 and has a market cap of $3.1 billion (April 18, 2022).
2. Decentraland – MANA
Decentraland is the first virtual world entirely owned and created by users. This supermarket’s Decentraland virtual reality batches have seen massive popularity thanks to a $3.5 million lot. The platform uses $MANA as its native currency. Decentraland is an investor’s dream in the metaverse .
MANA is used by players for a wide range of activities, including buying new land, incentivizing infrastructure growth, customizing avatars, purchasing wearable devices, and many other marketplace transactions .
The most important route to Decentraland NFT’s passive income is through buying and selling land. The 16m x 16m land NFT is single and non-spawnable. The lowest price of a parcel is around 5000 MANA. Since the amount of land is 90,000, the value will continuously increase.
MANA is valued at $2.08 and has a market cap of $3.8 billion as of April 18, 2022.
3. Gala Games – GALA
GALA is an NFT with passive income projects where users can create different games as NFTs and give them complete control over their assets. GALA describes itself as “the largest decentralized gamer network in the world” and gathers more than 1.3 million users every month .
GALA coin is used to trade assets, buy upgrades, and other in-game assets, it is also used as a governance token. GALA game founder button helped attract many people looking for passive income from NFT.
Gala Games is valued at $0.19 and has a market cap of $1.3 billion as of April 18, 2022.
>> Read more: How much is a bored APE NFT ?
4. Axie Infinity – AXS
Axie Infinity – AXS is considered the ruler of money games and is the best NFT with passive income projects. This hugely popular NFT project sees small creatures, Axies, fight each other while users can try their luck in breeding rare Axies. One of them has reached a million dollars in the past.
AXS helps generate passive income by earning rewards for locking its tokens. It acts as an interest-bearing savings account. You will receive interest for the whole time NFT coin is staked.
AXS helps generate passive income by earning rewards for locking its tokens
5. Enjin – ENJ
Enjin describes itself as the largest online gaming community platform with more than 250,000 game communities and 18.7 million registered players. In addition to earning through games and buying and selling digital goods, you can also earn ENJ rewards in exchange for participating in online games and other activities promoted within the platform.
6. Theta Network – THETA
The Theta Network team includes experienced media technologists and executives, with roles previously held at Netflix, Amazon, Samsung, Vimeo, and Salesforce. Theta Labs’ unique combination of blockchain expertise and video and entertainment experiences is key to making Theta the leading blockchain for media and entertainment.
You can earn TFUEL as a reward. While Theta is used for administrative purposes, TFUEL is for transactions, such as when a user pays Edge Nodes to share a video stream. THETA is valued at $3.04 and has a market capitalization of $3.04 billion as of April 18, 2022 .
7. Polygon – MATIC
Polygon has made potential forays into the metaverse and other projects. Polygon is a “layer two” or “sidechain” scaling solution that runs alongside the Ethereum blockchain. MATIC is the network’s native cryptocurrency, used for fees, staking, governance, etc .
MATIC is valued at $1.42 and has a market cap of $11 billion as of April 18, 2022 .
CyberKongz is the first NFT to use a passive income model using coins or tokens. These are avatars with randomly generated ape characters. NFT, originally 1000 tokens launched in March 2021, was sold out instantly. Initial ‘origin’ CyberKongz token holders earn $10 BANANA tokens daily for the next 10 years. Tokens can help add bios and traits and rename NFTs or varieties.
CyberKongz 34×34 pixel images have gained immense popularity due to their suitability as profile photos on Discord and social media, at a time when no one talked about profile photo projects.
>> Read more: How to Make Money With NFT Games in 2022 ?
3. How To Buy NFT Coins
Step 1: Open an Exchange Account
You can start setting up a virtual wallet from MetaMask or choose to open a wallet directly with a crypto exchange like Binance or Coinbase. A virtual wallet will help you keep your coins safe and highly secure.
Step 2: Buy Your NFT Coins
The process to buy NFT coins may vary depending on the platform you choose. As for Coinbase, it allows you to buy most NFT coins with funds from your bank account. Also, if you already have crypto in your coinbase account, you need to convert this to your desired NFT coin.
If you are using Binance, you can buy an NFT like Enjin with Bitcoin or USDT.
+ To help you better understand NFT, you can refer to NFT courses here
NFT is a growing phenomenon that has, to date, been largely unchecked. While they may get a big boost, they are also responsible for the sudden market crash. We shared 8 NFTs with passive income in 2022 and how to make passive income with NFT. However, they still have some associated risks and can also be a sudden market crash. So do your research thoroughly before making any investment .
4. How to Get Passive Income From NFTs
Staking NFTs comes from the convergence of NFT technology and decentralized finance (DeFi) protocols. Users provide a token commitment for network security and transaction validation in PoS protocols. Some other methods can also be applied such as locking cryptocurrency files in the DeFi protocol for profit.
NFT staking platforms usually study the rarity of the NFT and calculate the APY (percent annual return). The higher the rarity, the higher the APY and staking reward.
Renting out NFTs
Earning passive income from NFTs by renting out your digital assets is also a good idea. This is a new trend because the utility got from NFT games offers attractive income.
You can rent innovative weapons and unique tools that can unlock new features in the game. Some card trading games will allow you to rent NFT cards to increase your chances of winning. Or You can rent an NFT by specifying a rental period, pay the specified collateral and receive your borrowed NFT.
Earning Royalties From NFTs
Innovators are looking for ways to bring their products to market to passively profit from NFTs through royalties. You can set the terms that apply royalties whenever your NFT trading is on the secondary market. This way you can earn passive income from NFT sale price in perpetuity.
You can set your royalties at any price. For example the 7% level on your NFTs assets. This means that you will receive 5% of the actual sale price each time your digital artwork is sold to a buyer.
Providing Liquidity With NFTs
The continuous integration of NFTs in the DeFi ecosystem lets you provide liquidity in DeFi pools and earn NFTs.
When you provide liquidity to an exchange, you will be given tokens to record the amount you have locked in the pool. You can trade this NFT on the secondary market to liquidate your position in the liquidity pool.
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