NFTs have emerged as an attractive extension of cryptocurrencies and the possibilities of blockchain. Here is how staking works with NFTs.
One of the hottest trends in the industry today is the idea of “NFTs”. What is NFT? It is a special kind of token that represents a digital asset or physical item.
For example, a token that represents a digital art piece that you’re selling on the NFT marketplace could be considered an NFT. Non-fungible tokens are an interesting concept because they represent a way of adding utility to something — in this case, art. it then becomes a digital asset and can be sold.
The token’s identifying information is stored in a decentralized registry, in the form of Smart Contracts. These registries, similar to the ones used for decentralized apps, enable developers to digital assets directly to users.
As opposed to cryptocurrencies like Bitcoin where one BTC has the same value as another, non-fungible tokens are all unique in their own right. Furthermore, they are not divisible like fungible tokens. In this guide, we will explore NFT with regards to staking and the mechanics of how it all works.
One of the thoughts that come to mind is the prospect of staking them for additional profits. Let’s start with the basics, and build from there.
What is Staking?
Among many other things a user can do with NFTs is the idea of staking, which allows you to lock up some of your NFT tokens in a proof-of-stake crypto wallet to secure and govern a blockchain network. It is done in exchange for rewards, rather than a simple deposit or withdrawal model. It’s like a spin-off from mining, but not the same thing.
Why Stake NFTs?
The NFT ecosystem is hampered by low liquidity. At present, it is underdeveloped, as most users purchase the tokenised asset for long-term appreciation. Others do so to burn them, which creates scarcity, and, in turn, increases the value. Staking comes into play to resolve this problem. Staking a non-fungible is no different from staking a cryptocurrency.
Once you’ve found, for example, a digital asset with a revenue-generating potential, stake your tokens and receive incentives. The fee and block could come in the form of an annual percentage yield (APY) of the staked token, depending on the lock option duration. It could feature additional network validation, to ensure transaction integrity and confirmation.
Staking rewards depend on a variety of factors. Among them is the NFT asset’s potential to generate considerable income streams. NFT crypto staking can provide rewards up to 100% APY. Besides generating income for users, NFT staking also increases liquidity and attract more investors to the ecosystem. In turn, this will further facilitate the ecosystem’s growth.
Projection of the NFT Ecosystem
At the moment, NFTs encapsulates crypto, gaming, and digital artwork collectibles. However, content creators are currently hopping on the bandwagon, incorporating NFT into their products. For instance, artists who are into oil painting can create a digitized version of their works and even earn royalties.
Notable brands current license their NFTs, including Kellogg’s, Pizza Hut, Ubisoft, MGA Entertainment, and Taco Bell. As of June 2021, Twitter launched its NFT collections. If there’s any better time to become a part of the NFT ecosystem is now!
If you are already an NFT enthusiast who’s short on ideas for how to generate additional income other than HODLing long-term, NFT staking may be the answer. Look for NFTs with the potential to create good returns and invest your money. What makes staking interesting is that you don’t need to purchase your asset of choice outright; yet, you can partly own it and still earn high ROIs.
NFTs have carved a niche for themselves in the crypto marketplace. Here are insights on how NFT auctions are done?
A Comprehensive Guide to NFT Auctions
Ever thought of creating and selling your NFT at an auction to generate a lucrative income stream? Come to think of it, do you know how much the famous “Disaster Girl” meme sold for as a non-fungible token? A whopping $500,000. And if that isn’t enough, how about Jack Dorsey’s first tweet auctioning for $2.5 million.
However you want to consider it, NFTs are the new goldmine, creating opportunities for owners and collectors to earn sustainable incomes.
Perhaps, you missed out on the Bitcoin rave when it was just a few cents, and then Ethereum and the likes. You wouldn’t want to overlook this once in a lifetime opportunity, would you?
The demand for digital gaming, artwork, and crypto collectibles is skyrocketed. One memorable event in the industry is the Beeple NFT auction, Everdays: The First 5,000 Days, which sold at Christie’s for $69.2 million. The same NFT auction also set a record for the high-selling digital art in history.
An NFT is a non-fungible token or cryptographic token that is attached to a unique asset of value. The digital asset can be sold, traded, or transferred.
With the proliferation of cryptocurrencies and the advent of blockchain technology, tokens have taken on a new lease of life. In fact, they are now being treated as real digital assets. This is a major step in their evolution from just pure digital currency to an asset class in its own right.
While NFTs are often associated with the art and gaming (game items and avatars) industry, they have a variety of applications, including financial transactions (payment solutions), intellectual property (patents, copyrights, and trademarks), ownership (real estate, collectibles, and more), reputation (social media, marketing, and branding), and utility (smart contracts).
NFT Auctions: How Do They Work?
NFT auctions connect creators with audiences. Collectors looking for unique digital artwork or other collectibles can find them on reputable NFT auction websites. An NFT auction site runs on a blockchain, most likely, Ethereum.
In most NFTs, an ownership transaction is initiated by a wallet and the NFT is then registered and stored, similar to cryptocurrencies. The blockchain verifies the identity of the seller and the ownership and validity of the NFT. Of course, bidders on the platform are also verified.
In an auction, the owner of the NFT sets a reserve or starting price for the asset. The auction site runs on the Ethereum blockchain, which means that prices are set in ETH and are used for all transactions on the network. The reserve price is the lowest possible bid price, and is also called the “opening bid”. Collectors are to bid above this limit. With each bid, the price of the asset increases.
There is a time limit for the bid duration after which the seller accepts the highest bid price and receives it in ETH, while the NFT auction platform transfers ownership of the NFT asset to the buyer after the individual must have settled the NFT. There are no further bids on the asset except the new owner decides to auction it in the future.
When listing an NFT on an auction site, there is a certain percentage charge or GAS fees on the potential transaction. Hence, it is essential for you as a creator to factor in this cost before auctioning your NFT.
The most interesting fact about an NFT auction is that it operates in a digital world and yet it incorporates real-world assets. Depending on if you decide to be a creator or a collector, there is an avenue for you to make money and own highly treasured collectibles.
The mind-boggling returns posted by crypto projects are eye-opening. Some of the chart toppers are really making a difference.
A review of top performing coins and tokens for 2021
For an investor, cryptocurrency has the potential to be a great asset class. The notion that this digital currency can be used to store value on a decentralized and distributed basis in the future is very compelling.
Some cryptocurrencies have better platforms for investment due to their exponential ROIs. This guide discusses the top five cryptos that provide the best investment opportunities for investors and traders over a considerable timeframe.
Binance is a combination of the terms “binary” and “finance,” which implies that it provides a top-leading crypto peer-to-peer (P2P) exchange for holders within the Binance ecosystem.
Unveiling the BNB Team
The Binance exchange is operated by Beijie Technology, a holding firm founded by ChangPeng Zhao in 2017. Zhao’s partnership with the Binance team, alongside the efforts from the company’s co-founder and CMO, He Yi, has made this exchange a force to reckon with in the cryptocurrency sphere.
BNB’s Selling Point
The Binance Coin, like other cryptocurrencies in development, has a variety of applications outside of the Binance exchange, including credit card payments, trading, booking travel arrangements, payment processing, discounted transactions on the exchange, loans and transfers, investment, and entertainment.
Alternatives to Binance Coin
Binance coin isn’t the only coin out there that takes it home in terms of trading fees, trading volume, compliance, regulations, and asset availability. Other ideal alternatives to this crypto include Coinbase, Uphold, HitBTC, Poloniex, NiceHash, and Kucoin.
BNB has a market cap of over $60 billion and a total available coin supply of 153.43 million BNB. It ranks 5th on the cryptocurrency market. The crypto as the default currency of the Binance ecosystem, entitles holders to airdrops of new projects that launches on the Binance Smart Chain.
Another notable factor is BNB’s ROI of 343576.59%. As of the time of this report, the cryptocurrency is worth $405.
Unlike other cryptocurrencies, IOTA doesn’t function as a blockchain. Rather, it is a distributed ledger that runs on Tangle – Its proprietary backbone system.
It comprises nodes implemented towards confirmation transactions on the network. Hence, Iota has faster transaction speeds, compared to the traditional blockchains. This feature and many more places the crypto at the forefront of digital currencies in the IoT ecosystem.
Iota is co-founded by four individuals, namely David Sønstebø, Serguei Popov, Dominik Schiener, and Sergey Ivancheglo. Serguei Popov, IOTA’s Foundation’s director of research is also a board member of the company, while Schiener and Sønstebø are co-chairmen of the board of directors.
IOTA’s Selling Point
The IOTA network provides secured transaction, but with a difference. It gets rid of the implementation of blocks.
According to David Sønstebø, “IOTA is designed to provide one solution that no other crypto does: efficient, secure, lightweight, real-time micro-transactions without fees.”
The following cryptocurrencies are ideal replacements for IOTA, when factoring in instant transactions, real-time transfers, currency agnostic, transparency, fast P2P transactions, and Coinbase trading: Nano, Ripple, ZCash, and Stellar.
IOTA has a total coin supply of more than 2.7 billion MIOTA. Its ROI sits at 218466.67%. In 2019, Bitrue users witnessed 7,000 IOTA airdrop shared on the network. At the moment, there is no news on the next airdrop. Currently, the cryptocurrency is worth $1.25.
Ethereum is an open-source, decentralised finance (DeFi) blockchain technology. Its coin, Ether (Eth), is used to conduct secured transactions on the network.
Ethereum serves as a platform for a variety of cryptocurrencies. This ecosystem also allows for decentralised smart contract execution.
Ethereum was co-founded on July 30, 2015, by eight individuals, namely Gavin Wood, Vitalik Buterin, both of whom were ETH original authors, Charles Hoskinson, Anthony Di Lorio, Joseph Lubin, Mihai Alisie, Amir Chetrit, and Jeffrey Wilcke.
Ethereum’s Selling Point
According to Gavin Wood, the Eth blockchain serves as “one computer for the entire planet.” This implies that the blockchain creates a robust, censorship-resistant ecosystem for holders and investors.
The following platforms provide ideal alternatives to Ethereum: IBM Blockchain, Azure blockchain workbench, Kaleido blockchain, Amazon Quantum Ledger Database (AQLD), and Hyperledger.
There is a total of 116,125,822 ETH coin in supply, and at the moment, the crypto is worth $2,766.70. It also has an ROI of 96440.92%.
The Stratis network comes fully packed with several features that make transactions quicker and more secure. They include a proof-of-identity model, private sidechains, smart contract deployment, and full node operation.
The blockchain is powered by STRAX, used for payment and smart contract execution.
Users can create crypto wallets on the exchange and access consulting services via the Masternode.
Strax’s existence is attributed to Chris Trew, the brain and founder of the enterprise-based blockchain. A C# programmer and IT expert, Trew created the Stratis BaaS platform based on the Bitcoin (BTC) protocol.
Stratis Selling Point
Financial service companies and other organisations can use the Stratis platform to test, develop and deploy DApps without having to worry about network security and operating expenses.
Stratis does so by allowing enterprises to create permission-granted, private sidechains that interface with the main chain, as well as host decentralised apps, execute smart contracts, and use other privacy and identity verification features.
According to its whitepaper, this technique allows businesses to utterly personalise their platforms without the constraints of depending on a big blockchain like ETH or BTC.
Ideal alternatives to STRAX include Tron (TRX), EOS, Bitcoin Cash (BCH), and Litecoin (LTC).
The Stratis BaaS platform has a total of 131,860,808 STRAX and an ROI of 11156.53%. Each coin is currently worth $1.55. So far, there are a total of 100,000 STRAX available to airdrop users.
This list will be incomplete without discussing Bitcoin – the pioneer of cryptocurrencies. This DeFi exchange provides P2P transactions devoid of intermediaries.
It implies that users on the network can send and receive BTC securely. Based on the founder’s views, the exchange creates a platform where “online payments can be sent directly from one party to another without going through a financial institution.”
The BTC coin may be used to acquire physical assets, and crypto traders may trade on the exchange as well.
The real identity of Bitcoin’s founder still remains a mystery to date. Although to the general knowledge, the founder goes by the name Satoshi Nakamoto, there is a divided school of thought that this name might belong to an individual or a group of people using it as an alias.
Even though it was founded in January 2009 by Satoshi, several groups of developers have contributed to making the exchange a robust and secured crypto ecosystem for holders, investors, and traders.
Bitcoin’s Selling Point
The fact that Bitcoin was the first cryptocurrency to exist on the market gives it a distinct edge. At the moment, the cryptocurrency market is worth over $300 billion, thanks to the emergence of BTC.
The creation of the first cryptocurrency provided a conceptual and technological foundation for hundreds more competing ideas to follow.
It has also succeeded in establishing a worldwide community and spawning a completely new economy of millions of users who produce, invest in, trade, and utilise Bitcoin and other cryptocurrencies consistently.
Crypto users who want to invest in other cryptocurrencies, other than Bitcoin, can purchase the following coins: Ethereum, Litecoin, Ripple, Dogecoin, Lisk, MaidSafeCoin, and Dash.
Bitcoin has a maximum supply of 21 million BTC and a total supply of 18,724,856 BTC. Currently, one BTC is worth $37,929.96. Investors can purchase a handful of BTC coins as the crypto has an ROI of 28040.65%.
Cryptocurrency is an excellent long-term investment alternative. It is important to note, however, that trading is not without risks.
Other than that, you may make financial transactions on the marketplaces discussed in this guide and grow your portfolio.
DeFi has shown people around the world that crypto investing can yield good returns. Here is how yield farming works on Monnswap.
MoonSwap is an amazing DeFi project comprises an AMM dex that offers holders and traders significant profit-making opportunities. It runs on Ethereum layer 2 and comes with benefits, like zero gas fee and fast transaction processing.
Since becoming an innovative, workable product in 2021, MoonSwap is predicated on an execution timeframe of 20 seconds or less, thanks to the implementation of Conflux’s Tree Graph (TG) technology.
With a one-click process, you can convert your Ethereum tokens to MoonSwap tokens, also known as $MOON. Joining MoonSwap protocol comes with significant incentives. As such, liquid providers consider this AMM DEX their haven to make profits, including MoonSwap tokens, also known as ERC20 assets.
Holders can avail themselves of MoonSwap profit opportunities via different means. They can become MoonSwap LPs (PLPs) and earn MoonSwap tokens, transaction fees, highly appreciating FC (offered by the Conflux community), and tokens from MoonSwap’s airdrop partners. As the community expands, more incentives will come into the scene.
Farming with MoonSwap
MoonSwap can yield huge returns annually. However, you need to be a pool provider. But you cannot be if you don’t have a Web3 wallet. Hence, you can create an account with any of the following:
This wallet is what you use to move your Crypto token to the Conflux blockchain. You can get a ConfluxPortal extension. Using this extension, select the address located at the top-right area of the homepage. This will redirect you to the exchange page, where you can move your tokens. for example from ETH to cETH.
When conduction transactions on the blockchain, you do not have to pay any fee. The network takes care of that. Click approve to grant authorization on the transaction.
Becoming a Liquidity Provider (LP)
Adding liquidity to the pool is a simple process. To get the most profit, you have to be the first person to join the pool. As such, when other members conduct transactions in the pool, you earn significant profits.
However, joining the pool requires two equivalents of the tokens needed. For example, you need an equivalent of 1 ETH in USDT, which is around 2473.
Once done, you can confirm the transaction to move part of your asset to the pool. By doing so, you become an LP. Your fee income can be pegged at 0.3%. Joining the pool as the first LP gives you access to 100% of the pool’s gains. But there are risks as well, which you should take note of.
Available pools fall under Conflux, Ethereum, and the basic farm where the $MOON balance is displayed. If you have $MOON-Ethereum pair in the LP pool, you can earn tokens (PLP).
Claim your accumulating $MOON token at a zero-gas fee. Connect your Ethereum wallet to the MoonSwap to harvest your accumulated tokens automatically. Understand that farming on Conflux is easier and cheaper than on Ethereum.
How to Buy $MOON
To purchase your MoonSwap tokens, you should visit the Ethereum mainnet. Once on the platform, enter the activated token address (contract):
Some untrusted sources provide fake tokens. As such, be mindful of your transactions. It is important to have enough ETH balance in your wallet. If you do not have a wallet, create one. You will use your Ethereum wallet to make payments and also get the MoonSwap. Visit a reliable exchange, like Uniswap or Binance to get MoonSwap.
How to Trade Your Coins
You need a reliable crypto exchange to sell your coins. Some exchanges have huge trading volumes and active users that conduct transactions daily. Look for those with MoonSwap listings and register. Being on such platforms provides you with the opportunity to conduct transactions anytime. They also come with excellent trading opportunities.
Farming and investing in pools come with high risk. There may be financial losses, especially if the token is of a losing price over time. Also, there is a 0.3% trading fee. 0.25% of it goes to the liquid provider, which 0.5% is used to purchase $MOON from MoonSwap. As such, the $MOON can be destroyed.
Flowing from the above, you have to understand the risks before investing – all investments come with specific levels of risks. But above these factors, there are high potential rewards as well.
The Bottom Line
As a recap for individuals who want to farm on MoonSwap, visit the mining page and select the mining pool you want (if you are not creating one). Hold the PLP token that corresponds to the pool. Mine and stake the MLP token.
Your mining process has begun. You can “stake” and “unstake” your accumulated tokens and harvest them to your Conflux wallet. Once, you have understood the risk, reward, and process, you can decide if this DeFi is worth embarking on.
NFTs are making their mark around the globe alongside cryptocurrencies in a near-equal manner, traversing hitherto unexplored heights.
NFT stands for non-fungible token. It’s generally built using the same kind of programming as cryptocurrency, like Bitcoin or Ethereum, but that’s where the similarity ends.
Physical money and cryptocurrencies are “fungible,” meaning they can be traded or exchanged for one another. They’re also equal in value—one dollar is always worth another dollar; one Bitcoin is always equal to another Bitcoin. Crypto’s fungibility makes it a trusted means of conducting transactions on the blockchain.
NFTs are different. Each has a digital signature that makes it impossible for NFTs to be exchanged for or equal to one another (hence, non-fungible). One NBA Top Shot clip, for example, is not equal to what is the norm; simply because they’re both NFTs. (One NBA Top Shot clip isn’t even necessarily equal to another NBA Top Shot clip, for that matter.)
To understand how creative works get tied to NFTs, one has to understand exactly how an NFT functions. NFTs are unique crypto tokens that are managed on a blockchain.
The blockchain acts as the decentralized ledger that tracks the ownership and transaction history of each NFT, which is coded to have a unique ID and other metadata that no other token can replicate. This process gives NFTs the attributes of originality and scarcity that makes them so attractive when coupled with digital media.
NFTs are coded with software code (called smart contracts) that governs aspects like verifying the ownership and managing the transferability of the NFTs. Like any software application, NFTs can be further programmed beyond the basics of ownership and transferability to also include a variety of other applications and functionality, including those linking the NFT to some other digital asset.
For example, a smart contract could be written to automatically allocate a portion of the amounts paid for any subsequent sale of the NFT back to the original owner, thus giving the owner an ability to realize the benefits of the secondary marketplace. (For more information, see the proposed EIP-2981 standard for handling royalty payments for ERC-721 tokens.)
Thus, when someone makes (or “mints”) an NFT, they are writing the underlying smart contract code that governs the NFT’s qualities, which are added to the relevant blockchain where the NFT is managed.
Many blockchains can be used to manage NFTs, including Ethereum (with its long established ERC-721 and ERC-1155 smart contract standards), Flowchain, and Wax, all of which use a similar process. Notably, certain NFT marketplaces only function with certain blockchains, and so the choice of blockchain to use for an NFT can have real commercial implications for the seller
Creating an NFT
NFTs exist on a blockchain, which is a distributed public ledger that records transactions. You’re probably most familiar with blockchain as the underlying process that makes cryptocurrencies possible.
An NFT is created, or “minted” from digital objects that represent both tangible and intangible items, including:
Videos and sports highlights
Virtual avatars and video game skins
Even tweets count. Twitter co-founder Jack Dorsey sold his first ever tweet as an NFT for more than $2.9 million.
Essentially, NFTs are like physical collector’s items, only digital. So instead of getting an actual oil painting to hang on the wall, the buyer gets a digital file instead.
They also get exclusive ownership rights. That’s right: NFTs can have only one owner at a time. NFTs’ unique data makes it easy to verify their ownership and transfer tokens between owners. The owner or creator can also store specific information inside them. For instance, artists can sign their artwork by including their signature in an NFT’s metadata.
Blockchain technology and NFTs afford artists and content creators a unique opportunity to monetize their wares. For example, artists no longer have to rely on galleries or auction houses to sell their art. Instead, the artist can sell it directly to the consumer as an NFT, which also lets them keep more of the profits.
In addition, artists can program in royalties so they’ll receive a percentage of sales whenever their art is sold to a new owner. This is an attractive feature as artists generally do not receive future proceeds after their art is first sold.
Art isn’t the only way to make money with NFTs. Brands like Charmin and Taco Bell have auctioned off themed NFT art to raise funds for charity. Charmin dubbed its offering “NFTP” (non-fungible toilet paper), and Taco Bell’s NFT art sold out in minutes, with the highest bids coming in at 1.5 wrapped ether (WETH)—equal to $3,723.83 at time of writing.
An NBA Top Shot generated more than $500 million in sales as of late March. A single LeBron James highlight NFT fetched more than $200,000.
Even celebrities like Snoop Dogg and Lindsay Lohan are jumping on the NFT bandwagon, releasing unique memories, artwork and moments as securitized NFTs.
How to Buy NFTs
If you’re keen to start your own NFT collection, you’ll need to acquire some key items:
First, you’ll need to get a digital wallet that allows you to store NFTs and cryptocurrencies. You’ll likely need to purchase some cryptocurrency, like Ether, depending on what currencies your NFT provider accepts.
You can buy crypto using a credit card on platforms like Coinbase, Kraken, eToro and even PayPal and Robinhood now. You’ll then be able to move it from the exchange to your wallet of choice.
You’ll want to keep fees in mind as you research options. Most exchanges charge at least a percentage of your transaction when you buy crypto.
Popular NFT Marketplaces
Once you’ve got your wallet set up and funded, there’s no shortage of NFT sites to shop. Currently, the largest NFT marketplaces are:
OpenSea.io: This peer-to-peer platform bills itself a purveyor of “rare digital items and collectibles.” To get started, all you need to do is create an account to browse NFT collections. You can also sort pieces by sales volume to discover new artists.
Rarible: Similar to OpenSea, Rarible is a democratic, open marketplace that allows artists and creators to issue and sell NFTs. RARI tokens issued on the platform enable holders to weigh in on features like fees and community rules.
Foundation: Here, artists must receive “upvotes” or an invitation from fellow creators to post their art. The community’s exclusivity and cost of entry—artists must also purchase “gas” to mint NFTs—means it may boast higher-caliber artwork.
For instance, Nyan Cat creator Chris Torres sold the NFT on the Foundation platform. It may also mean higher prices — not necessarily a bad thing for artists and collectors seeking to capitalize, assuming the demand for NFTs remains at current levels, or even increases over time.
Although these platforms and others are host to thousands of NFT creators and collectors, be sure you do your research carefully before buying. Some artists have fallen victim to impersonators who have listed and sold their work without their permission.
The verification processes for creators and NFT listings aren’t consistent across platforms — some are more stringent than others. OpenSea and Rarible, for example, do not require owner verification for NFT listings.
Buyer protections appear to be sparse at best, so when shopping for NFTs, it may be best to keep the old adage “caveat emptor” (let the buyer beware) in mind.