The Best NFTs For Earning Passive Income
As discussed in our other blogs, a Non Fungible Token (NFT) is an irrevocable digital ownership and authorisation for a given asset regardless of whether it is digital or physical. Most NFTs including many well-known ones such as Bored Ape Yacht Club, are based on the Ethereum blockchain, where Ethereum is used for buying, selling and trading them. Although they are new, NFTs have proven to be a very popular way to earn income. However, trading these can sometimes have limited effect to earning profit due to the high charges such as the gas fees that can be charged through Ethereum.
How To Earn Passive Income
Considering the high charges, many platforms have thought of other ways for users to earn rewards and passive income through NFTs. These other ways include staking, renting, royalties and many more. There will be an overview on the ways to earn passive income below, and the best NFT projects to earn passive income.
One of the most popular ways of earning passive income is through staking NFTs. Staking in easier words is locking NFTs for a set period of time in which users can also be rewarded at the same time. By investing in NFT staking projects, some individuals could earn from 5-20% profit, which can differ depending on the NFT and the platform used for staking the NFT.
Another way of earning passive income can be through renting NFTs. There are many NFTs that have high prices. Renting out these NFTs can increase tokens easily, resulting in earning passive income by merely renting them. Although renting is still in its early days, NFT creators already have an indication of the correct pricing and duration for renting out their tokens.
Some NFTs actually have limits on the prices you can rent the NFTs for, whilst on the other hand, with other NFTs, the rental price can be at whatever seems most reasonable to the individuals calculations. It would be obvious that the more well-known NFTs would have higher rental rates due to them being more in demand.
In addition to above, another method of earning passive income could be through NFT Royalties. Many NFT marketplaces are seen to be offering a way in which users can gather constant royalties from good tokens. This would mean that whenever that NFT is sold, regardless of the actual timing, the original creator will gain profit with every sale. This would guarantee passive income and this specific way of gaining the income would be instilled in the token itself, no matter what platform is being used.
Along with the methods mentioned above, there are many more ways of earning passive income. There will now be an overview on a few of the best NFT projects that can help earning passive income.
The Best NFT Projects For Earning Passive Income
One of the best NFT projects that can guarantee individuals to gain passive income would be CyberKongz. This is a collection consisting of randomly generated avatars. This NFT originally launched in March 2021 starting at only 1000 tokens which were sold out fairly quickly. CyberKongz gained much popularity resulting in a strong community being formed which expanded the project to include the BANANA token.
Individuals who are holding the original 1000 tokens of the NFT are eligible of earning 10 BANANA tokens per day for up to the next decade. This is a form of guaranteed passive income that many holders are able to receive, which they can use to hold on to or even trade or burn depending on their preference.
As well as CyberKongz, a further NFT project that could help earn a generous amount in the form of passive income could be Mutant Cats. This is a collection consisting of 9,999 avatars that are created on the Ethereum blockchain. Individuals who hold this NFT can stake and earn passive income through their native utility token known as FISH. For every staked avatar, there would be 10 FISH tokens rewarded per day. This NFT actually allows users to hold ownership of well-known blue chip NFTs.
Bored Ape Yacht Club
Another well-known NFT that can generate passive income could be Bored Ape Yacht Club. Recently, this NFT has become popular and can be seen to have increased immensely in value. It was first launched at $200 and currently stands at $142,000 as per OpenSea. This NFT is so popular that well known celebrities such as Eminem and Neymar Jr have their ownership, even presenting them on their social networking accounts.
The interest of this NFT has increased a lot as well as the scope of being able to earn passive income by staking. Owners of these NFTs can even sell them for immediate profit, or keep them and enjoy NFT royalties that come along with it.
ReNFT is among the best NFT projects for earning passive income. It is the first rental platform, allowing many new similar platforms to be introduced. ReNFT allows individuals who are holding NFTs to rent them out, by putting forward a price and the duration of rental. As individuals are able to rent their NFTs, they can earn passive income through the income they make with the rent they receive.
In addition to the examples shown above, another good NFT project could be The Sandbox. This is a gaming platform run by the public. The users of this are able to make money whilst creating games, sometimes even merely playing.
Through this platform, one can earn passive income in many ways. It can become a rental platform where individuals can rent out their land for business, entertainment and even advertising purposes. Individuals who create games and assets are also able to sell them and in return, earn SAND tokens. These tokens can then be staked, making them eligible for earning passive income through the rewards they then receive.
Whilst investing in NFTs, there are many opportunities of being able to earn income in different ways. Above, there has been an overview on some methods that can help in earning passive income without really having to do anything major. A few of the best NFT projects to earn passive income have also been discussed above to help guide you where could be best to go to make more income on the side.
However, when looking to earn passive income, it would definitely be wise to conduct your own research and check everything thoroughly before making any decision, especially knowing how unpredictable the NFT and crypto world can be.
DISCLAIMER: This is NOT financial advice. Please do not take any of the above as financial advice, please conduct your own research.