In the world of cryptocurrency, there are two types of people. One, those who participate in the market by trading actively and investing, and two, those earn passive income from their holdings. For the latter group, there are several ways to generate passive income from NFTs. In this blog post, we will explore five of the best methods for doing so!
The first method is Axie Infinity passive income. The Axie Infinity NFTs are a unique token that can only be acquired by playing Axie Infinity. They allow players to earn passive income from their holdings in Axies, which are digital pets like dogs or cats, but with more complex genetics – which determines how much each pet makes per day!
– This method requires playing and managing an account on Axie Infinity (a game where you breed virtual pets), so it might not appeal to everyone as there's work involved before seeing any results. However, if they engage with NFTs already, this could fit into their lifestyle nicely because they get rewarded for doing something fun anyway!
– If someone loves playing Axie Infinity, Axies make a great way to earn income in addition to enjoying the game passively
– The Axie infinity NFTs are currently available on the open market and can be found at various exchanges
Another method of generating passive income from NFTs is through tokens that have this functionality built-in. For example, one could hold onto an ERC20 token called "Profit Share," which entitles the holder to a percentage of profits generated by the company that issued it!
– This type of token requires little effort on behalf of the holder; as long as they hold it, they will continue receiving their share of profits!
– Profit-sharing tokens can be found on various exchanges and can be a great way to secure passive income from a wide variety of sources.
A third method for generating passive income from NFTs is through Masternodes. They are computers performing specialized functions in decentralized networks like Dash or Pivx. To run a masternode, one must lock up a certain number of tokens as collateral; in return, they earn regular payouts directly from the network!
– This is an excellent option for those who want to earn income passively while contributing to a thriving community alongside!
– Masternodes typically require some technical knowledge to set up, but there are plenty of online resources to help get started
Fourthly, we have staking, a way of earning passive income from NFTs by participating in the governance process for a network or platform that supports Proof-of-Stake consensus algorithms like Cosmos Hub and Algorand. To stake your tokens on these platforms, one must lock up some amount as collateral; in return, they get regular payouts directly from the network!
– This method requires little effort on behalf of the holder; as long as they hold it, they will continue receiving their share of profits!
– Masternodes typically require some technical knowledge to set up, but there are plenty of online resources to help get started. For those who want passive income while contributing towards community growth with good governance, staking is an excellent option!
Lastly, these are tokens representing a real-world asset such as gold, silver, or even oil! The holder of an asset-backed token can earn passive income by simply holding the token and waiting for the underlying asset's price to increase!
Asset-backed tokens can be found on various exchanges and can be a great way to secure passive income from a wide variety of sources.
We hope you enjoyed this overview of five methods for generating passive income from NFTs! If you're looking for more ways to get involved with NFTs, be sure to check out our website for upcoming events and projects!