While crypto staking has been around for a long time, non-fungible token (NFT) staking is just starting to take off.

What is NFT staking

NFT staking is the process of locking non-fungible tokens in smart contracts of the platform in order to receive rewards and/or additional benefits. To add NFT to staking, you will need a web3 wallet — for example, ZenGo . This is a keyless mobile crypto wallet developed by the Israeli firm KZen Networks. It is available for all iOS devices since iPhone 6 and for most Android devices.

However, not all NFTs can be delegated to staking. Before buying digital collectibles, carefully examine all the details and make sure they are suitable for this purpose.

How NFT staking works

Staking can be compared to depositing money into a savings account at a bank. While your funds are blocked, you earn interest. In this case, non-fungible tokens are added to staking instead of cryptocurrencies.

NFT staking rewards will vary by platform and specific collection. Different collectibles will bring different income, and some are not subject to blocking in smart contracts at all. All these factors are determined by the project team at the minting stage — that is, the creation of NFTs.

Advantages and disadvantages of NFT staking

Like any other investment vehicle, NFT staking has its pros and cons. Let’s look at them in more detail.

Advantages:

Obtaining passive income. If you have NFTs that you are not going to sell in the near future, staking is a great opportunity to use your unused digital assets to earn additional income.

Interaction with projects and communities. Most projects offer useful tokens to users who stake their NFTs. These tokens can provide additional benefits, such as the right to vote and control, allowing participants to influence the future of the project.

Flaws:

Fraud risk. The NFT staking market is still in its infancy, so it can be quite difficult to distinguish reliable players from bad actors. Unreliable platforms can mishandle user funds and hide with their tokens. To avoid NFT scams, exercise due diligence and research the staking platform and its team thoroughly

Price volatility. As long as your NFTs are staked, their value can fluctuate significantly — and with it, the amount of rewards. However, if your investment strategy is focused on long-term storage, you should not worry about it.

Which platforms support NFT staking

We have compiled a short list of the most popular platforms that offer NFT staking to users. Please note that each of them has unique capabilities and supports different types of non-fungible tokens.

Binance NFT PowerStation

1. NFTX

2. Doge Capital

3. Splinterlands

4. Polychain Monsters

5. BAND NFTs

6. Mobox (MBOX)

7. KIRA

8. FootballCoin

9. WhenStaking (Onessus)

Some of these platforms, such as Polychain Monsters and Splinterlands, are dedicated to NFT games and only allow in-game assets to be staked.

Binance NFT Station is the best choice for beginners

Binance NFT PowerStation is one of the most popular and affordable platforms on our list. Exchange users can earn passive income from holding Binance Fan Tokens, as well as enjoy various benefits, such as priority for buying tickets or participating in voting. Fan tokens are especially popular among sports club fans, but they are also often used by artists and celebrities with large followings.

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