For most digital assets, including NFTs, there is an investment method that is similar to the structure of depositing money in a bank and receiving interest. Staking is an investment method popularized by the DeFi market, but as the NFT market has grown in popularity, so has the NFT scene, with many projects offering staking services. Today, we're going to tell you everything you need to know about staking if you're an NFT investor.
Wait, what is staking?
Staking is similar to how we deposit money in a bank: we entrust our digital assets, namely ETHs and NFTs, to a specific organization and receive a reward in return. To put it more simply, I deposit my ETH into a blockchain network, participate in its operation and verification, and receive cryptocurrency as a reward. The more you contribute, the more stable and secure the network becomes. The reward rate varies from project to project, but the more you stake, the less there is in the market, which helps keep the price stable. In other words, staking means doubling down (?) on your faith. But there are also disadvantages: while staking, you can't get back the assets you've entrusted, and you won't be able to get them back during the promised period, so you need to be careful if the value of your digital assets drops while you're staking, because you could lose money.
How does NFT staking work?
Staking in the NFT market is similar to this. It's similar to a service where you deposit NFTs with a project team for a set period of time and receive interest or rewards. Staking is practiced in a variety of ways, from blue chip projects to gaming NFTs to video files. Binance, a global crypto exchange, has launched a service for staking Sandbox NFTs. Holders of NFTs can receive SAND, a commodity used in the sandbox, as a reward. Bellybear, a Korean NFT project, has also launched a system to reward NFTs with "jelly" that can be exchanged for other goods, such as chicken and pizza. Coolcats also runs a staking system that rewards owners with milk tokens, and the price of the tokens they receive varies depending on the rarity of their collection. To be a successful staker, you need to find a project that you will admire in the long run, not just for a short period of time! Today we looked at stakes that reward you for trusting us with your assets. Stay tuned for the next installment!