NFTs are getting so much media attention and the idea is to present the digital files so that it has a value by its uniqueness and originality. You can purchase and sell digital artwork, tweets, an audio file, video file, GIFs, and almost everything written in bits – zeroes and ones. The NFTs are advanced technological elements added to these digital assets rendering them permanent on Blockchain. Not only this, NFTs have the ability to mimic real-world assets through tokenization and trade with those tokens just like any cryptocurrency coin or token. Say, a real estate is turned into an NFT image and then this artwork can be presented on the NFT marketplace and be sold there without involving any mediators or the hassle traditional centralized ways. In addition, it adds the new use case in these NFTs and hence the value.
NFT Marketplaces are the online exchanges to mint and trade NFTs online. NFTs are a fad and they hold insane value and potentially the best option to earn as a trader or use NFTs to earn passive income. Passive incomes are great and help us monetarily and there are several ways that people choose according to their knowledge, interest, and profit. The media attention has made NFTs an incredible option to consider while planning a way to earn passive incomes. Trading NFTs and earning from these sounds reasonable but the question of passive income feels eccentric, but it’s not. This article addresses this question amiably. We go through different ways of earning passive income from NFTs.
Passive Income for Artists, Writers, and Content Creators:
If you are an artist, writer, or content creator, financial freedom of life timing is waiting for you in the NFT world. Protecting digital content in this copy-paste world is not easy. However, it can turn profitable if you turn your content into NFT. This gives you the exclusive rights to your writeups, artworks, and other content so that the content only belongs to you no matter how many times it was used on the internet.
Say if you are an artist who just created an amazing artwork. You can simply generate a digital copy of it. Several online exchanges like Rarible, NFT Stars, OpenSea, and Crypto.com provide the service of Minting NFTs where you can turn this artwork into NFT to sell digitally.
Minting involves the assigning of several attributes to your digital or physical asset like:
- Name of Creator
- Name of Owner
- Price
- Description
- Platform Minted
- No. of tokens to mint
- Royalty cut
- And many more.
What’s cooler is you still own the creator rights of the NFT and the blockchain equips you to determine the scarcity of your asset. What’s even cooler is, selling NFT is not a one-time gain. That means every time your NFT is resold on any marketplace you earn a percentage of the sale and a royalty fee is yet to include.
If you have writing skills and you think you can stand out, Mirror.xyz is the right platform for you. Mirror.xyz leverages cryptocurrency to provide you with an online platform to publish your novel ideas and writeups and then monetize those. According to the website,
“Mirror is the next big change in the long history of symbolic communication. Through a decentralized, user-owned, crypto-based network, Mirror’s publishing platform revolutionizes the way we express, share, and monetize our thoughts.”
The platform provides users with tools to write and target their desired audience. The platform pays the writer in cryptocurrency rather than in traditional cash payments. There are huge chances of getting crowdfunding for your unique projects via NFTs that can be continuously traded and keep earning on the writer’s behalf. The platform uses Ethereum blockchain for its native token $WRITE and NFTs. Mirror.xyz creates a competitive pool for 10 selected writers and they’re voted by the community for their work. For each vote, the writer wins a $WRITE token, giving the writer the ability to publish on their platform. Some writers have even made $30,0000 for their work. Mirror.xyz can turn any type of your writing including poems, essays, stories, or novels into NFT.
Passive Income for NFT Holders:
NFTs can be stored on digitals wallets and can be sold for a potential return of payment. The cryptocurrency market is highly volatile while NFTs are an excellent investment option with low risk, high reward and lower volatility. Their price increase overtime and you earn the price difference. Be it cryptocurrencies, NFTs are any trade, your entry and exit price determines your profit gains however, the things bit change when it’s Crypto world. The more you HODL your assets, the more you gain for your patience. There are staking and DeFi options to earn passive income however, in NFT you earn reward for doing so.
In addition, the rewarding mechanism is different for different NFTs. Some NFTs give their HODLERs daily rewarding tokens. CyberKongz rewards their Genesis NFT holders a daily reward in NFTs in their native token (ticker $Banana).
Each Genesis Kong produces 10 $BANANA every day for the next 10 years. The price of one $BANANA was $6 and it rose to $181.25 as today on Feburary 16, 2022. So, holding one Genesis Kong can earn you $1810 per day, a simple math, a protentional passive earning.
Not only this the more price rises in $BANANA, the more you earn. That’s just one good example.
The other decent earning way from idle NFTs is staking. Staking NFTs can win you rewards on your idle NFTs while you still completely own those NFTs. The more you hold the better rewards you gain as usually there are multipliers on the staking platform which reward you better as the time increases.
R-Planet is a platform to stake your idle NFTs and earn potential rewards. You can calculate your staking reward here. More platforms like Coinbase are coming into the arena to provide their services for NFTs and Binance might add the staking feature for NFT staking with a cool reward feature.
Concluding Thoughts:
NFT is a newer idea still waiting for acceptance at a larger scale and still underrated compared to the services and use case. Many of us repent for not buying bitcoin in the early days when it was worth cents. If an NFT is chosen wisely, it will not only reward as its value increase with time, additionally, you can earn the staking rewards on your holding. NFTs are actually the undying fad of Passive Income and early adoption and the right choice can be the financial freedom of tomorrow.