Choise.ai

<p><img src="https://choise.com/_next/image?url&#61;https%3A%2F%2Fcms.choise.com%2Fassets%2F57a14f37-8f45-4c90-a326-d80223deb918.png&amp;w&#61;3840&amp;q&#61;75" /></p><h2 id="header-0">In this guide</h2><ul><li>What does “staking” mean?</li><li>What is NFT staking?</li><li>How does NFT staking work?</li><li>Factors to consider when staking NFTs</li><li>How can I earn passive income from NFT staking?</li><li>Where can I stake NFTs?</li><li>What are the best NFT collections for staking?</li><li>Risks and limitations for staking NFTs</li><li>Closing thoughts: Should I stake my NFTs?</li></ul><h2 id="header-1">What does “staking” mean?</h2><p>In  the context of cryptocurrency and blockchain technology, staking refers  to the process of holding a certain amount of a particular  cryptocurrency in a specialized wallet, and in return, earning rewards  for helping to maintain the network&#39;s security and processing  transactions.</p><p>Staking  requires a user to temporarily lock up their cryptocurrency holdings as  collateral to validate transactions and create new blocks on the  blockchain. This ensures the integrity of the network and helps to  prevent bad actors from manipulating the system. In return for staking,  users can earn new tokens or fees as rewards.</p><p>Staking  is seen as an alternative to traditional mining, which is  energy-intensive and requires expensive hardware. It is also viewed as a  way to incentivize long-term holding and reduce market volatility.</p><h3 id="a-href-https-choise-com-news-cho-token-staking-cho-rel-noopener-noreferrer-nofollow-stake-cho-a-on-choise-com-a-href-https-defi-choise-com-staking-utm_source-61-articleutm_medium-61-blogutm_campaign-61-all-staking_nfts_ai_article_text-charism-perf_002utm_content-61-articleutm_term-61-rel-noopener-noreferrer-nofollow-defi-platform-charism-a-increase-your-apy-and-receive-additional-rewards"><a href="https://choise.com/news/cho-token/staking-cho" rel="noopener noreferrer nofollow">Stake CHO</a> on Choise.com <a href="https://defi.choise.com/staking?utm_source&#61;article&amp;utm_medium&#61;blog&amp;utm_campaign&#61;all|-staking_nfts_ai_article_text-|charism|perf_002&amp;utm_content&#61;article&amp;utm_term&#61;|" rel="noopener noreferrer nofollow">DeFi platform Charism</a>, increase your APY and receive additional rewards.</h3><h2 id="header-2">What is NFT staking?</h2><p>NFT staking is a relatively new concept in the world of cryptocurrency and blockchain technology. It involves staking <a href="https://choise.com/news/crypto-world/what-is-nft-and-how-does-it-work-2023" rel="noopener noreferrer nofollow">non-fungible tokens (NFTs)</a> in exchange for rewards, such as additional NFTs or other cryptocurrency tokens.</p><p>NFTs are unique digital assets that represent ownership of a<a href="https://choise.com/news/crypto-world/10-nft-types-what-is-inside" rel="noopener noreferrer nofollow"> specific item or piece of content</a>,  such as art, music, or other collectibles. Staking NFTs typically  involves depositing them into a specialized wallet or smart contract and  locking them up for a certain period of time.</p><p>The  exact details of NFT staking can vary depending on the specific  platform or protocol being used, but in general, staking NFTs helps to  support the network and ecosystem by incentivizing holders to maintain  their ownership and participate in community activities.</p><p>For example, some <a href="https://choise.com/news/tutorials/best-nft-marketplaces-2023" rel="noopener noreferrer nofollow">NFT marketplaces</a> allow users to stake their NFTs in exchange for access to exclusive  content or early access to new releases. Other platforms may offer  staking rewards in the form of additional NFTs, cryptocurrency tokens,  or other perks.</p><h2 id="header-3">How does NFT staking work?</h2><p>NFT staking works in a similar way to traditional cryptocurrency staking, but with non-fungible tokens instead.</p><h3 id="here-are-the-general-steps-involved-in-nft-staking">Here are the general steps involved in NFT staking:</h3><h3 id="step-1-choose-a-platform-or-protocol-that-supports-nft-staking">Step 1. Choose a platform or protocol that supports NFT staking.</h3><p>There  are various NFT marketplaces, platforms, and protocols that offer NFT  staking. Research and choose a platform that meets your needs and  supports staking for the types of NFTs you own.</p><h3 id="step-2-connect-your-wallet">Step 2. Connect your wallet.</h3><p>To  stake your NFTs, you&#39;ll need to connect your digital wallet to the  staking platform. Make sure you have the correct wallet and that it  supports the staking protocol you&#39;re using.</p><h3 id="step-3-deposit-your-nfts">Step 3. Deposit your NFTs.</h3><p>Once  you&#39;ve connected your wallet, you can deposit your NFTs into the  staking platform&#39;s smart contract or wallet. This typically involves  selecting the NFTs you want to stake and specifying how long you want to  stake them for.</p><h3 id="step-4-earn-rewards">Step 4. Earn rewards.</h3><p>As  you stake your NFTs, you&#39;ll start earning rewards. These rewards may be  in the form of additional NFTs, cryptocurrency tokens, or other perks.  The exact rewards and rates of return will vary depending on the  platform and protocol you&#39;re using.</p><h3 id="step-5-withdraw-your-staked-nfts">Step 5. Withdraw your staked NFTs.</h3><p>Once  your staking period is over, you can withdraw your staked NFTs from the  platform. You&#39;ll typically need to wait for a certain period of time  for the staking period to end before you can withdraw your NFTs.</p><p><img src="https://cms.choise.com/assets/fe0aa567-ac17-4c6e-ac38-0f62f9990d64?width&#61;2880&amp;height&#61;240" /></p><h2 id="header-4">Factors to consider when staking NFTs</h2><ul><li><strong>Platform and protocol</strong></li></ul><p>Different  staking platforms and protocols have different rules, rewards, and  requirements. Do your research and choose a platform that meets your  needs and supports the types of NFTs you own.</p><ul><li><strong>Staking rewards</strong></li></ul><p>Consider the <a href="https://choise.com/news/cho-token/4-things-that-give-nto-value" rel="noopener noreferrer nofollow">rewards</a> you can earn by staking your NFTs. These rewards may be in the form of additional NFTs, cryptocurrency tokens, or <a href="https://choise.com/news/cho-token/discover-nto-stages-and-prices" rel="noopener noreferrer nofollow">other perks</a>. Look at the staking rates of return, fees, and risks involved in staking to determine if it&#39;s worth it.</p><ul><li><strong>Staking period</strong></li></ul><p>Staking  NFTs usually involves locking up your assets for a certain period of  time. Consider the length of the staking period and whether you are  comfortable with the timeframe. Some platforms may offer flexible  staking periods, while others may require longer commitments.</p><ul><li><strong>NFT liquidity</strong></li></ul><p>Consider  the liquidity of the NFTs you want to stake. Staking may make it  difficult to sell your NFTs during the staking period, so make sure you  are comfortable with the potential illiquidity.</p><ul><li><strong>Risks</strong></li></ul><p>Like  any investment, staking NFTs carries risks. These risks may include  market volatility, hacking, smart contract risks, and other <a href="https://choise.com/news/tutorials/how-to-detect-nft-scams-2023" rel="noopener noreferrer nofollow">potential hazards</a>. Consider these risks before staking your NFTs and ensure you are comfortable with the potential losses.</p><ul><li><strong>Community and ecosystem</strong></li></ul><p>Consider  the community and ecosystem around the staking platform or protocol.  Look for a platform with an active community, strong governance, and  transparent decision-making processes.</p><h2 id="header-5">How can I earn passive income from NFT staking?</h2><p>Earning  passive income from NFT staking requires research, planning, and risk  management. You can earn rewards by using the following tips:</p><h3 id="tip-1-stake-popular-nfts">Tip #1. Stake popular NFTs</h3><p><a href="https://choise.com/news/tutorials/how-to-trade-nfts-2023" rel="noopener noreferrer nofollow">Popular NFTs</a> with high demand are likely to have higher staking rewards. Research  popular NFTs in your collection or in the market and look for staking  opportunities with attractive rewards.</p><h3 id="tip-2-stake-for-longer-periods">Tip #2. Stake for longer periods</h3><p>The  longer you stake your NFTs, the more rewards you can earn. Consider  staking for longer periods if you have a long-term view of the market.</p><h3 id="tip-3-diversify-your-holdings">Tip #3. Diversify your holdings</h3><p>Consider staking NFTs from different collections or categories to diversify your holdings and reduce risk.</p><h3 id="tip-4-look-for-flexible-staking-options">Tip #4. Look for flexible staking options</h3><p>Some  staking platforms offer flexible staking options, where you can  withdraw your NFTs early for a penalty fee. Consider flexible staking  options if you need liquidity or want to reduce your risk exposure.</p><h3 id="tip-5-take-advantage-of-staking-pools">Tip #5. Take advantage of staking pools</h3><p>Staking  pools allow multiple users to pool their NFTs together and earn rewards  proportionally. Joining a staking pool can be a good way to <a href="https://choise.com/news/crypto-world/nft-security-issues-2023" rel="noopener noreferrer nofollow">reduce your risk</a> and earn rewards with a smaller NFT collection.</p><h3 id="tip-6-keep-an-eye-on-market-trends">Tip #6. Keep an eye on market trends</h3><p>The  NFT market can be volatile, and staking rewards can change based on  demand and supply. Keep an eye on market trends and adjust your staking  strategy accordingly.</p><h2 id="header-6">Where can I stake NFTs?</h2><p>There are several platforms and protocols where you can stake NFTs, each with its own rules, rewards, and requirements.</p><p><strong>Nifty Gateway </strong>is  a popular NFT marketplace that offers staking options for select NFT  collections. Staking rewards are paid in the form of the platform&#39;s  native token, $GEM.</p><p><img src="https://cms.choise.com/assets/c32dbd94-fc67-4107-af25-bdf6012f6d32?width&#61;1830&amp;height&#61;748" /></p><p><strong>Aavegotchi</strong> is a DeFi-enabled NFT game that allows players to stake their  Aavegotchi NFTs and earn rewards in the form of the platform&#39;s native  token, GHST.</p><p><img src="https://cms.choise.com/assets/31bf2189-2b25-4e3d-9f42-2d405ce12b4c?width&#61;1838&amp;height&#61;836" /></p><p><strong>Rarible</strong> is another popular NFT marketplace that allows users to stake their  RARI tokens to earn staking rewards in the form of the platform&#39;s native  token, RARI.</p><p><img src="https://cms.choise.com/assets/09a9fdb8-3276-4178-85d0-8693febd1317?width&#61;1838&amp;height&#61;906" /></p><p><strong>Binance Smart Chain</strong> is a blockchain that supports NFT staking through various platforms and  protocols, such as Venus and Autofarm. Staking rewards are typically  paid in the form of the platform&#39;s native token or Binance Coin (BNB).</p><p><img src="https://cms.choise.com/assets/1c805b5e-2c0c-4d34-a803-50d0a9e37eea?width&#61;1838&amp;height&#61;904" /></p><p><strong>Unifty</strong> is a platform that allows users to create, buy, and sell NFTs. The  platform also offers staking options for select NFT collections, with  rewards paid in the form of the platform&#39;s native token, NIF.</p><p><img src="https://cms.choise.com/assets/cdafa6d6-cf99-4f32-9494-4a02796d4af1?width&#61;1836&amp;height&#61;956" /></p><p><strong>Polkamon</strong> is a DeFi-enabled NFT game that allows players to stake their Polkamon  NFTs and earn rewards in the form of the platform&#39;s native token, PMON.</p><p><img src="https://cms.choise.com/assets/06d0693d-d91b-41d3-8ab3-5661790f45fa?width&#61;1834&amp;height&#61;936" /></p><p>These  are just a few examples of platforms and protocols that offer NFT  staking. Before staking your NFTs, make sure to do your research and  choose a platform that meets your needs and supports the types of NFTs  you own.</p><h2 id="header-7">What are the best NFT collections for staking?</h2><ul><li><strong>CryptoPunks</strong> are one of the earliest and most popular NFT collections, known for  their iconic 8-bit pixel art style. Some platforms, such as Nifty  Gateway, allow users to stake their CryptoPunks and earn rewards in the  form of the platform&#39;s native token.</li><li><strong>Bored Ape Yacht Club</strong> is a collection of 10,000 unique digital apes, each with its own  personality traits and accessories. BAYC has gained popularity in the  NFT community and has several staking options, such as through  Aavegotchi and Yuga Labs.</li><li><strong>Pudgy Penguins</strong> are a collection of 8,888 unique penguins, each with its own traits and  accessories. The collection has gained popularity in the NFT community  and has several staking options, such as through the platform Chill  Penguin.</li><li><strong>Board Ape Kennel Club (BAKC)</strong> is a spin-off collection of Bored Ape Yacht Club, featuring 3,000  unique digital dogs. BAKC has several staking options, such as through  the platform Aavegotchi.</li><li><strong>Art Blocks</strong> is a platform that allows artists to create generative NFT art pieces.  Some Art Blocks collections, such as Ringers and Squiggles, have gained  popularity and offer staking options for their NFTs.</li><li><strong>Gutter Cat Gang</strong> is a collection of 3,000 unique digital cats, each with its own traits  and accessories. Gutter Cat Gang has several staking options, such as  through the platform NFTfi.</li></ul><h2 id="header-8">Risks and limitations for staking NFTs</h2><ul><li><strong>Platform Risk</strong></li></ul><p>NFT staking typically requires users to stake their NFTs on a specific platform or protocol. If the platform is <a href="https://choise.com/news/crypto-world/nft-security-issues-2023" rel="noopener noreferrer nofollow">hacked</a> or experiences technical difficulties, users could lose their staked  NFTs. Investors should carefully research the reputation and security  measures of the staking platform before participating.</p><ul><li><strong>Volatility Risk</strong></li></ul><p>The  value of NFTs can be highly volatile, and staking does not guarantee  any returns or protection from price fluctuations. Investors should be  prepared for the possibility of a decrease in the value of their staked  NFTs.</p><ul><li><strong>Liquidity Risk</strong></li></ul><p>Staking NFTs can limit liquidity, meaning that the NFTs cannot be sold or <a href="https://choise.com/news/tutorials/how-to-trade-nfts-2023" rel="noopener noreferrer nofollow">traded</a> while they are being staked. This could prevent investors from taking  advantage of market opportunities or liquidating their assets in case of  an emergency.</p><ul><li><strong>Eligibility Limitations</strong></li></ul><p>Not  all NFTs are eligible for staking, and different platforms may have  different eligibility criteria. Investors should carefully review the  terms and conditions of the staking platform before investing.</p><ul><li><strong>Regulatory Risk</strong></li></ul><p>The  regulation of NFTs and staking is still evolving, and investors could  face regulatory risks depending on the jurisdiction in which they  operate. Investors should consult with legal and tax professionals to  understand the potential regulatory risks associated with staking NFTs.</p><ul><li><strong>Contract Risk</strong></li></ul><p>Some NFT staking platforms use smart contracts to execute the staking process. Smart contracts are not <a href="https://choise.com/news/crypto-world/nft-security-issues-2023" rel="noopener noreferrer nofollow">immune to bugs or coding errors</a>, which could result in the loss of staked NFTs or rewards.</p><h2 id="header-9">Closing thoughts: Should I stake my NFTs?</h2><p>Staking  NFTs can be a potentially lucrative investment strategy, allowing you  to earn passive income while holding onto your assets. But whether you  should stake your NFTs or not depends on your investment goals, risk  tolerance, and personal preferences.</p><p>Before  staking your NFTs, you should carefully evaluate your investment goals  and consider the risks and limitations associated with staking. If you  are comfortable with the risks and believe that staking aligns with your  investment strategy, then staking your NFTs may be a viable option.  However, if you are risk-averse or prefer more traditional investment  strategies, then staking NFTs may not be the right fit for you.</p><p>Read full article: <a href="" rel="noopener noreferrer nofollow">https://choise.com/news/tutorials/nft-staking-quick-guide-2023</a></p><p><img src="https://cms.choise.com/assets/ad9de14d-2549-4988-8798-2d6e288dbd15?width&#61;1144&amp;height&#61;271" /></p>

NFT staking. A quick guide

Table of Contents

ChoiseAI

Other articles published on Apr 26, 2023

Research Spotlight | Documentation is an Act of Kindness | Part II

Cardano’s SSI Solution Atala PRISM Gains Open-Core Adoption by Major Open Source Foundation

Want to launch a tech startup in Africa? Here are 5 ideas to consider

Send Multiple ERC20 Tokens in One Transaction with This Tool!

After All the Drama, Binance Cancels Voyager Deal

Copper Adds Bitstamp to ClearLoop Network

Join our free newsletter for daily crypto updates!