You may have to stake (lock-up) your NFT for a day, week, month, or longer.
Usually, the longer you stake your NFT, the higher the reward.
When you stake your NFT, you usually receive a reward in the form of the projects native token (cryptocurrency).
You can often sell this token on the open market using an exchange.
Some projects reward you with NFTs from the same collection. This is partially true with gaming projects. The NFTs you receive can be used to level-up and enhance your game play, and you gain an advantage over other players.
The reason NFT projects offer staking, is to encourage investors to invest in their NFT collection. The more NFTs staked, the less NFTs there are listed for sale. Thus, increasing the value of an NFT collection. This entices new investors into the project.
Staking NFTs also reduces the chance holders decide to sell as they will lose the payout income.
You can also visit our NFT resource directory to find useful links to help you invest in NFT more effectively.
Visit us today at spendingcrypto.com
Author:
Jonathan Titley
Founder:
spendingcrypto.com
Co-founder:
https://fomomagazine.io
(NFT industry magazine and project reviews)
Co-founder:
https://nftave.io
(NFT marketplace and educational academy)
