Staking NFTs offers a way to make passive income with cryptocurrency. NFT staking is still a relatively new investment opportunity. Considering the growth in popularity of NFTs, it’s very likely that staking will become even more common in the near future. So, it is important to learn how staking NFTs works.
What is NFT Staking?
Simply put, NFT staking means that you lock up a NFT, either on the NFT’s project site or using a third-party platform. Holders receive rewards, in exchange for staking an NFT. Therefore, staking NFTs provides holders with a way to earn income from their NFTs without the need to sell them.
How Does NFT Staking Work?
Step 1: In order to stake your NFTs, the first step is to transfer your token to a staking platform. Some well known platforms that provide this service are Splinterlands, NFTX, and BAND NFTs. Once you’ve found a platform that you’re okay with, you’ll need to transfer your NFTs to the platform.
Step 2: After you’ve staked your NFTs, you can begin collecting rewards. The amount of rewards you earn is different on each platform. In general, the more NFTs you stake, the more rewards you get. Daily or weekly rewards are offered on most platforms. These reward tokens can usually be traded on exchanges on cryptocurrency exchanges for money.
One thing to keep in mind… even though you still own your NFTs when staking. You can’t sell or transfer them to another address while they’re staked.