Skip to content Skip to sidebar Skip to footer

How to make Passive income from NFTs

How to earn passive income from NFTs

NFTs are being widely used for representing art and collectables in the crypto space. However, most investors don’t have the knowledge that NFTs can also be used to generate passive income. Yes, you heard it right, NFTs are not just limited to trading but they can also pay us well.

In this post, we will talk about how we can earn passive income from NFTs.

Ways to Earn a passive income from NFTs


Staking is a mechanism where you deposit your assets in a smart contract in order to earn incentives from the platform. Just like normal ERC20 tokens, NFTs can also be staked in some platforms that provide the facility. Once you stake your NFTs in a contract, you will not be able to sell them. However, you will continue earning incentives from it.

Renting or Delegating your NFTs

The world of gaming has already adapted NFTs and they are being widely used in Play to Earn games. In order to learn more about Play to Earn games, you can check out our blog which will explain to you everything that you need to know about these Play to Earn games.

Now coming to the topic, NFTs represent some special abilities and elements that can be bought in the game. On top of that, you can even rent these NFTs to some other players by taking a renting fee. Thus, you can earn huge incentives by renting your NFTs to other players.

NFT Lending

Some platforms like Evergrow, allow you to lend your NFTs and earn interest on it. DeFi was already doing the same by allowing lending and borrowing of ERC 20 tokens. Users earned interest on their crypto by just lending them to other users who needed to borrow money. This process is ultra-secure as the borrower has to deposit some collateral in order to borrow. Thus, there is no risk of default.

Earn Royalties from your NFTs

We all have heard the concept of royalties in the field of music, art and cinema. NFTs too offer royalties to their creators or owners. NFT marketplaces like Opensea allows users to set their royalty terms while minting the NFTs. The users can set the royalty % so that every time their NFT is sold by a user, they will get a % of the amount. Usually, the reward is 5-10% of the sale value.

NFTs are the best way to represent scarce elements of the web. At the same time, NFTs can prove to be a great source of passive income. However, the passive income use case of the NFTs is not so famous and well known as compared to the ERC20 tokens. One reason for this can be an excessive hype for art and collectables that are overshadowing the other use cases of the NFTs.

Sign Up to Our Newsletter

Be the first to know the latest updates

Whoops, you're not connected to Mailchimp. You need to enter a valid Mailchimp API key.