NFT

Price Appreciation Isn’t Guaranteed, So Start Making Money with Idle NFTs and DeFi Assets

Price Appreciation Isn’t Guaranteed, So Start Making Money with Idle NFTs and DeFi Assets

Most people purchase non-fungible tokens (NFTs) with the intention of hopefully selling them at a much higher price in the future. And some NFT holders don’t want to sell their prized possessions, but that doesn’t mean they can’t benefit from them at all.

 

It’s a well-known fact that investing in any market has a certain level of risk. Moreover, price appreciation of any asset isn’t guaranteed and there can be a significant opportunity cost associated with holding idle assets on a long-term basis. This is also true with NFTs because their fair value is largely undetermined due to their highly speculative nature.

 

NFTs are arguably the most abstract types of assets that have ever been created and traded. Recently, a “COVID Alien” NFT sold for over $10 million and it’s quite possible that other buyers may not want to pay anywhere near that amount for such an item. Many people find NFTs to be quite ridiculous so it can be challenging (if not impossible) to assign them an objective monetary value.

 

However, there are certain strategies investors can employ to begin earning steady returns from their NFT or DeFi assets. 

Leverage your NFTs to participate in yield farming

Most experienced investors would know that the art and collectible markets are considerably more “liquidity-starved” compared to the traditional equity, gold markets, and other asset classes. And this liquidity crisis is even more common in the NFT space, which is in its infancy.

 

It can take a very long time to match serious buyers and honest sellers or lenders and borrowers. Without the right amount of liquidity, NFT holders might not be able to find the best deal and could end up selling their collectibles for extremely low prices if they need money right away for some reason.

 

Drops Crypto is a platform that allows NFT owners to generate capital by providing their NFTs as collateral. The platform aims to offer users with attractive options that allow them to effectively leverage their assets for loans and participate in yield farming opportunities.

 

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