Gate.io: What is NFT staking? Features and mechanism

Gate.io

Is NFT staking the same way as virtual currency? I will explain. With the NFT industry suddenly expanding in the 2020s, the NFT market itself is attracting a lot of attention. The number of people who are dabbling in NFT investment is increasing, and the number of people who are staking is also increasing. This is an investment method that allows you to earn passive income.

What is staking?

Staking is a system in which NFTs are deposited on the network for a certain period of time. You can earn rewards by making deposits. Simply put, by depositing money in a bank account, it is a mechanism that allows you to earn profits, so it is a simple way to earn money without knowing technical or analytical methods. Of course, the profit margin is low, about 3%. It is a very friendly investment method even for beginners because you can get profit without losing ownership.

Benefits of staking

Currently, the benefits of staking NFTs are as follows. If you purchase and participate in blockchain services by purchasing coins or NFTs, there are various benefits and you can also earn yield. Also, check the service terms and policies. The number of game projects is increasing, and you can use funds by transferring Bitcoin and Ethereum tokens through Metaverse and other platforms. The contents and functions of the operation are suitable for beginners and are not difficult. Earn money with the latest developed technology.

just leave it

Staking is profitable just by depositing. Therefore, no specific investment method is required. When it comes to virtual currency FX, technical analysis is also required, so experience and skills are required, but staking does not require such knowledge.

Beginners can do it

In the case of general investment, traders need experience and skills, and it is natural that it takes several years to be able to win. Traders take a very long time to become profitable, but in the case of staking, even beginners can take on the challenge because all they have to do is deposit.

higher interest rates than banks

Staking is more profitable than depositing in a bank. Even if you deposit it in a major bank in a developed country, the interest rate is often less than 1%. However, in the case of NFT staking, it is possible to aim for 3% to 5%, so it is a very delicious investment.

Lock period for staking

Staking generally has a lock period. You cannot withdraw staked virtual currency or NFT during the lock period. If there is a big change in this period, there is also a case to make a loss. The lock period depends on the NFT. Some NFTs can be withdrawn immediately, while others have lock periods of months or even a year.

Disadvantages of staking

There are of course possible disadvantages to staking. The biggest disadvantage is the risk that the price of the virtual currency will crash during the lock period. You cannot sell staked cryptocurrencies during the lock period. If there is a big crash in between, you will lose. Determine if it is worth holding for the long term before investing.

In the case of staking, long-term holding is a prerequisite. In the short term, it is not very profitable. Although it is stable because it takes time to obtain a yield, it is not possible to earn a large amount one-off like day trading. It is an investment that is suitable for those who want to operate with low risk, so it is impossible to earn at once.

NFT Marketplace

Gate.io usually allows you to enter the NFT marketplace and actually do business. To do this, opening an account is important and necessary at first. If you would like to exhibit your work, please open an account. It is also introduced in the article below. You can stake on the app, and you can do so while checking prices on the web. Unique systems have been released and content can be tailored to different purposes and types using these. It is safely managed and attractive.

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