{"id":1160,"date":"2023-03-16T06:36:10","date_gmt":"2023-03-16T06:36:10","guid":{"rendered":"http:\/\/78.47.81.216\/?p=1160"},"modified":"2023-10-11T18:33:28","modified_gmt":"2023-10-11T18:33:28","slug":"how-can-nfts-be-used-in-defi-decentralized-finance","status":"publish","type":"post","link":"https:\/\/blog.ag.qubiq.cc\/?p=1160","title":{"rendered":"How can NFTs be used in DeFi (decentralized finance)?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/03\/DeFi-and-non-fungible-tokens-\u2014-1024x576.jpg\" alt=\"\" class=\"wp-image-1166\" srcset=\"https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/DeFi-and-non-fungible-tokens-\u2014-1024x576.jpg 1024w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/DeFi-and-non-fungible-tokens-\u2014-300x169.jpg 300w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/DeFi-and-non-fungible-tokens-\u2014-768x432.jpg 768w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/DeFi-and-non-fungible-tokens-\u2014.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>The <strong>blockchain <\/strong>consists of many of the same <strong>tokens <\/strong>that can replace each other. Therefore, even if the components of the <strong>blockchain <\/strong>are replaced, the system can continue to function as before without any changes. But there is another type of <strong>token <\/strong>called <strong>NFTs<\/strong>, which was created in 2017 based on <strong>Ethereum smart contracts<\/strong>.<\/p>\n\n\n\n<p>At the same time, <strong>DeFi <\/strong>refers to a financial system that operates on a <strong>decentralized<\/strong>, permissionless <strong>blockchain<\/strong>, such as <strong>Ethereum<\/strong>, and is built using<strong> smart contracts<\/strong>. So, <strong>NFTs and DeFi<\/strong> are the two most commonly used terms in conversations about cryptocurrency and <strong>blockchain <\/strong>technologies. The world continues to explore the possibilities of these two fascinating fields of innovation, but how do <strong>NFTs <\/strong>and <strong>DeFi <\/strong>intersect? This is a very interesting topic and we will discuss it in detail today.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"540\" src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/03\/image-21.png\" alt=\"\" class=\"wp-image-1165\" srcset=\"https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/image-21.png 960w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/image-21-300x169.png 300w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/image-21-768x432.png 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">What are <strong>NFTs <\/strong>used for?<\/h2>\n\n\n\n<p><strong>NFTs <\/strong>or non-fungible <strong>tokens <\/strong>are also one of the components of the <strong>Ethereum blockchain<\/strong>. It is impossible to split or replace <strong>NFTs <\/strong>because they are unique and differ from other blocks in the <strong>Ethereum <\/strong>network. This allows a person or company to secure their rights to a unique object that has been used successfully by artists and art venues. So let&#8217;s look at the main ways non-fungible <strong>tokens <\/strong>are used:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Non-fungible <strong>tokens <\/strong>on the <strong>Ethereum blockchain<\/strong> are used to represent unique digital assets such as art, music, video, and other forms of creative work.<\/li>\n\n\n\n<li>These <strong>tokens <\/strong>are often bought\/sold as collectibles, and their value can vary based on factors such as rarity, popularity, and historical significance.<\/li>\n\n\n\n<li>By allowing artists to retain control and receive ongoing royalties for their work even after it is sold, these <strong>tokens <\/strong>have the potential to transform property rights and royalty systems in the creative industries.<\/li>\n<\/ul>\n\n\n\n<p>Converting files into non-fungible <strong>tokens <\/strong>is a secure way to use <strong>blockchains <\/strong>to streamline the processes of buying, selling, and trading while drastically minimizing the occurrence of fraud. But when looking at <strong>NFTs <\/strong>from a financial perspective, they can be viewed as a store of value, similar to more conventional assets such as gold or coins. In this sense, each <strong>token <\/strong>represents a unique value that may be subject to market variability.&nbsp;<\/p>\n\n\n\n<p>So, the similarities between <strong>NFTs <\/strong>and conventional financial systems are greater than many people realize. Rather than viewing <strong>DeFi <\/strong>and non-fungible <strong>tokens <\/strong>as potentially opposing concepts, it is important to recognize that they can have a close connection. <strong>NFTs <\/strong>are already being integrated into financial processes, demonstrating the potential of combining with <strong>DeFi<\/strong>. To understand how this merger can benefit individuals in both the real world and the metaverse, it is important to have a clear understanding of the definition and purpose of the <strong>DeFi ecosystem<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What can you do with <strong>DeFi<\/strong>?<\/h2>\n\n\n\n<p>Today <strong>DeFi <\/strong>enables a range of financial activities similar to those offered by banks, such as earning interest, borrowing and lending, insurance, trading, flash loans, and others. Moreover, <strong>decentralized <\/strong>finance works faster, more efficiently, and with greater security through the use of <strong>blockchain <\/strong>technology (most often <strong>Ethereum<\/strong>).&nbsp;<\/p>\n\n\n\n<p>Users interact directly with each other without third-party providers. In addition, <strong>blockchains <\/strong>allow for the elimination of time constraints \u2014 the system can be used by any person 24\/7, all year round. Let&#8217;s take a closer look at the definition of <strong>decentralized <\/strong>finance:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>DeFi operates as a financial system, with the involvement of various <strong>blockchains<\/strong>, including <strong>Ethereum<\/strong>, to enable its ecosystem.<\/li>\n\n\n\n<li>DeFi provides <strong>decentralized <\/strong>financial management solutions by incorporating tools like<strong> smart contracts<\/strong>.<\/li>\n\n\n\n<li>The system of <strong>decentralized <\/strong>finance is completely transparent and open, unlike the alternative centralized services.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>So, the definitions of non-fungible <strong>tokens <\/strong>and <strong>DeFi <\/strong>clearly show the possibilities of discovering the link between the two. But where do you start to see the connection between <strong>DeFi <\/strong>and <strong>NFTs<\/strong>? Looking at their definitions, you can see that NFT <strong>tokens <\/strong>offer a unique way to store value and <strong>DeFi space<\/strong> provides a <strong>decentralized <\/strong>infrastructure to unlock value.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What are <strong>smart contracts<\/strong> in <strong>blockchain<\/strong>?<\/h3>\n\n\n\n<p>As you may know, <strong>smart contracts<\/strong> are self-executing programs that run on a <strong>blockchain <\/strong>(<strong>Ethereum<\/strong> or another). They enable the automation of contract execution, validation, and enforcement without the need for a third party. In the context of our topic today, it is very important to reveal another thing. So, <strong>smart contracts<\/strong> play a critical role in both <strong>DeFi projects<\/strong> and NFT <strong>tokens<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In <strong>DeFi<\/strong>, <strong>smart contracts<\/strong> are used to automate lending, borrowing, trading, and staking, ensuring that all operations are performed correctly and transparently without the need for a broker.<\/li>\n\n\n\n<li>In the case of <strong>NFTs<\/strong>, <strong>smart contracts<\/strong> are used to define the unique characteristics of the asset, such as proprietary rights, transferability, and authenticity. <strong>Smart contracts<\/strong> allow <strong>token <\/strong>creators to program certain conditions, ensuring that the artist receives a share of the profits when the <strong>token <\/strong>is sold\/traded.<\/li>\n<\/ul>\n\n\n\n<p>In addition, <strong>DeFi protocols<\/strong> are sets of self-executing programs that are encoded into smart contracts on a <strong>blockchain <\/strong>like <strong>Ethereum <\/strong>or another. <strong>DeFi protocols<\/strong> use <strong>blockchain <\/strong>technology to provide a more secure and transparent way to conduct various operations. Now you understand why we touched on this topic.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How does NFT <strong>token <\/strong>help in <strong>DeFi<\/strong>?<\/h2>\n\n\n\n<p>Now <strong>NFTs <\/strong>can play an important role in the <strong>DeFi space<\/strong> by providing unique assets that can be used as collateral for loans, traded on <strong>marketplaces<\/strong>, and used in other financial apps. For example, NFT <strong>marketplaces <\/strong>can integrate with <strong>DeFi <\/strong>protocols to offer new financial applications and investment opportunities. Let&#8217;s explore the different use cases of non-fungible <strong>tokens <\/strong>in DeFi:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Collateral for loans in <strong>DeFi<\/strong>. For example, a person can deposit <strong>tokens <\/strong>as collateral and borrow a certain amount of crypto, which they can then use for other purposes.<\/li>\n\n\n\n<li>Users can provide liquidity to <strong>DeFi protocols<\/strong> by staking their NFT, which earns them a share of the transaction costs generated by the <strong>DeFi protocols<\/strong>.<\/li>\n\n\n\n<li>NFT can also be used to create unique products in <strong>DeFi<\/strong>, such as prediction markets.<\/li>\n\n\n\n<li>By holding an NFT, users can participate in decision-making processes related to the operation of the <strong>DeFi <\/strong>platform, such as voting on proposals or allocating resources.<\/li>\n\n\n\n<li>NFT can be traded on <strong>marketplaces<\/strong>, allowing people to gain exposure to unique assets and providing new investment opportunities in the crypto field.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"540\" src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/03\/image-20.png\" alt=\"\" class=\"wp-image-1164\" srcset=\"https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/image-20.png 960w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/image-20-300x169.png 300w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/image-20-768x432.png 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/figure>\n\n\n\n<p>So, <strong>NFTs <\/strong>have emerged as a promising use case in the<strong> DeFi space<\/strong>, particularly on the <strong>Ethereum blockchain <\/strong>(with the introduction of ERC-20 <strong>tokens <\/strong>representing digital assets). NFTs can serve as proof of proprietorship for art and other unique assets, making <strong>Ethereum <\/strong>an ideal platform for creators to share and engage with collectors.&nbsp;With the ability to prove proprietorship, <strong>NFTs <\/strong>offer significant value propositions on the <strong>DeFi platforms<\/strong>. Most importantly, <strong>DeFi <\/strong>helps in revealing the value of a particular asset. The next few years will show how productive the process of merging NFT and DeFi technologies will be, and whether it will be able to attract new users to the ecosystem without any major problems for it.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are non-fungible tokens and DeFi? The emergence and use of NFT in decentralized finance. How do non-fungible crypto tokens relate to DeFi and what problems can they solve?<\/p>\n","protected":false},"author":7,"featured_media":1166,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[40,60,38],"authors":[37],"class_list":["post-1160","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","tag-alphaguilty","tag-defi","tag-education","authors-alphaguilty"],"acf":{"reading_time":""},"author-name":"AG Content Manager","suggested-articles":[{"ID":954,"post_author":"7","post_date":"2023-02-17 16:01:22","post_date_gmt":"2023-02-17 16:01:22","post_content":"<!-- wp:image {\"id\":957,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/02\/How-to-stake-crypto-1024x576.jpg\" alt=\"\" class=\"wp-image-957\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p><strong><a href=\"https:\/\/blog.alphaguilty.io\/what-is-a-cryptocurrency-and-how-does-it-work\">Cryptocurrency<\/a> <\/strong>owners now have many promising strategies, and one of them is <strong>crypto staking<\/strong>. You don't need to understand how the <strong>crypto exchange <\/strong>works or buy expensive devices for mining. The high earnings and returns on <strong>crypto staking<\/strong> are attracting more and more people.\u00a0<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Even those who used to be far from the world of <strong><a href=\"https:\/\/blog.alphaguilty.io\/what-is-a-cryptocurrency-and-how-does-it-work\">cryptocurrency<\/a><\/strong>. Today <strong>crypto staking<\/strong> is a greener way to get <strong>cryptocurrencies<\/strong>. Nevertheless, it is necessary to consider the risk that may face a user who keeps <strong>coins <\/strong>in his portfolio for a long time.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Now we will tell you what <strong>crypto staking<\/strong> is and how a <strong>stacking pool<\/strong> works. If you're new to the <strong><a href=\"https:\/\/blog.alphaguilty.io\/what-is-a-cryptocurrency-and-how-does-it-work\">cryptocurrency<\/a> <\/strong>field, you'll be able to quickly apply the info you get to receive <strong>passive income<\/strong>. More experienced users will also find here helpful material about the <strong>best crypto staking platforms<\/strong> this year. Be sure to read this <strong>crypto staking guide<\/strong> to the end.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":956,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/02\/image-16-1024x768.png\" alt=\"\" class=\"wp-image-956\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:heading -->\n<h2>How does <strong>staking work<\/strong>?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The field of <a href=\"https:\/\/blog.alphaguilty.io\/what-is-a-cryptocurrency-and-how-does-it-work\">cryptocurrencies<\/a> is experiencing a boom in DeFi and <strong>coins <\/strong>issued by independent <strong>blockchains<\/strong>. So, <strong>crypto staking<\/strong> is fundamentally different from mining and plays a big role in the development of the new generation of <strong><a href=\"https:\/\/blog.alphaguilty.io\/what-is-a-cryptocurrency-and-how-does-it-work\">cryptocurrency<\/a><\/strong>. The demand for <strong>crypto staking<\/strong> is evidenced by the total number of <strong>cryptocurrencies <\/strong>placed on DeFi platforms.\u00a0<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Let's start with a general definition of <strong>crypto staking<\/strong>. In the world of cryptocurrencies, this general word unites different ways of investing with some common features:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Funds are placed in a<strong> crypto wallet <\/strong>for a long period at a certain interest, during that time they are used for various technical or financial tasks.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>After the end of the placement period, the user receives his deposit back, as well as the <strong>passive income<\/strong> in the same or another <strong>cryptocurrency<\/strong>, depending on the specific conditions.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>The system of <strong>staking pools<\/strong> is familiar to many from BTC, where computing power is combined and increases the probability of mining a block, then dividing the <strong>coins <\/strong>according to the efficiency of each participant. The PoS algorithm allows the same trick, but the <strong>coins <\/strong>are collected in one <strong>staking pool.<\/strong><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Many <strong>cryptocurrency exchanges<\/strong> <strong>offer staking<\/strong> to users. The main principle is universal - a certain amount of <strong>crypto holdings<\/strong> must be blocked on the account and the higher it is, the bigger the profit of the owner. There are several types of <strong>crypto stacking<\/strong>:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Limited. The user specifies in advance the period during which he will hold a digital asset on his account. It is impossible to increase this period. As a rule, this \u0449\u0437\u0435\u0448\u0449\u0442 implies a high-interest rate, that is, it allows getting the maximum profit relatively quickly.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Perpetual. The contract is not limited by a specific period. That is, the user can terminate cooperation and withdraw tokens from the <strong>wallet <\/strong>at any time. As soon as this happens, the accrual of interest stops.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Decentralized. The user makes a kind of bank deposit, keeping the funds in the <strong>wallet<\/strong>. These assets can be used by other participants for different operations. All processes on the <strong>staking platforms<\/strong> happen automatically.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>There are thousands of different PoS projects and<strong> staking programs<\/strong> \u2013 which one to choose, you decide for yourself, weighing the pros and cons. This way you can earn much more than from<strong> crypto trading<\/strong> today.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Advantages of <strong>staking pools<\/strong><\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Thanks to a <strong>stacking pool<\/strong>, anyone can connect to one of the validators and give it even a small amount of <strong>cryptocurrency <\/strong>to work with, receiving income with the deduction of a small commission, for its services.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The entry threshold is the main advantage of a <strong>staking pool<\/strong>. You don't have to have dozens of <strong>coins<\/strong>. Also, any user can join the <strong>staking pool.<\/strong> It's elementary to place <strong>coins <\/strong>in a pool with a few clicks, and then crypto starts giving <strong>passive income<\/strong> to you. This is very handy if you plan to invest for years to come.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Since the <strong>staking pool <\/strong>always monitors the state of its servers, all participants can safely count on a stable, round-the-clock profit. And often withdraw it at will at any time. Although there are also contracts with a freeze for a certain time.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>How do you stake crypto?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In simple terms, staking is a passive way of earning money from keeping your funds, and the PoS algorithm is used in this process. This is one of the ways to protect <strong>blockchains <\/strong>from third-party interference and placing unreliable information. PoS works as simply as possible:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Users store their <strong>coins <\/strong>in <strong>wallets<\/strong>.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>The assets support the processes running in the system.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>The <strong>wallets <\/strong>of the owners receive regular remuneration.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>Members of the network keep <strong>blockchains <\/strong>running without putting any effort or time into it. So, the earnings here are passive without any tricks. The larger the amount the users keep in their <strong>wallets<\/strong>, the more blocks he generates and the higher their income. Before we talk about<strong> crypto exchanges<\/strong> that <strong>offer stacking,<\/strong> let's go over the basics a bit more.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>What is proof of stake?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>It is a method of protection in crypto in terms of the probability of creating a new block depending on the current balance and the total number of assets. In simple words, PoS is the ability to be rewarded by owning a particular crypto. Validators take part in staking and freezing some of the assets. The algorithm randomly selects one validator from the total number. There are some variants of PoS:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Proof-of-Activity. Offers a hybrid model for creating new blocks while using PoW and PoS.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Proof-of-Burn. To find a block, the validator sends funds to a random address obtained by hashing. No one has access to this <strong>wallet<\/strong>, so the <strong>coins <\/strong>are simply burned.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>In PoS, the staking reward between validators is distributed randomly, because the algorithm can take into account not only the number of coins but also other data.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>What <strong>exchanges offer staking<\/strong>?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Today, everyone can use staking for a permanent income, and there are a large number of <strong>crypto exchanges, <\/strong>offering users favorable terms. Consider the best <strong>staking platforms<\/strong> that meet the requirements of reliability, safety, high percentages of profitability, and user-friendly interface:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Kraken. A well-known <strong>crypto exchange <\/strong>with a staking service, it supports 18 types of crypto. To get a profit passively, all you need to do is register on the platform, make a deposit, and choose which assets you want to send to the stack. You can disconnect from the service instantly at any time.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Coinbase. This <strong>crypto exchange<\/strong> offers a regulated and easy-to-use platform for staking. The <strong>crypto exchange <\/strong>helps customers start nodes, synchronize them with the network, and comply with the volume limit for staking. It supports 6 types of crypto. Users don't need to buy assets on this <strong>crypto exchange <\/strong>to be eligible for <strong>staking rewards<\/strong>, as they can transfer tokens from an external <strong>wallet<\/strong>.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Gemini. It is one of the leading platforms that offer over 40 cryptocurrencies for staking rewards as part of the Gemini Earn program. People can claim their cryptocurrencies back at any time, though they may have to wait up to five working days due to Gemini's liquidity limitations.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>KuCoin. This is one of the largest <strong>crypto exchanges<\/strong> in terms of trading volume. The platform offers multiple staking offers and large pools where users can get <strong>staking rewards<\/strong>. The platform runs two <strong>staking programs<\/strong> \u2013 Soft Staking and Pool X.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>We've listed the best platforms that you can confidently use. They differ in terms of asset mix, interest rates, and commissions. Compare them to each other before deciding what's right for you.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":955,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/02\/image-15-1024x682.png\" alt=\"\" class=\"wp-image-955\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>How do I get my <strong>staking rewards<\/strong>?<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Any user can get <strong>staking rewards<\/strong> when you stack some assets over some time. Simply choose the option you want, and once staking is complete, you can receive benefits. The payout period can vary depending on the platform and the terms you select. For example, on Kraken, you receive<strong> staking rewards <\/strong>twice a week.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>What are the risks?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>This is a risky type of investment. Like any other actively developing sphere, it attracts many fraudsters. In many projects, widely advertised at the start, the actual yield, in the end, turned out to be much lower than the nominal. At launch, the price of an asset can be higher than at the final settlement. In such cases, users get almost nothing, and many work at a loss.<\/p>\n<!-- \/wp:paragraph -->","post_title":"How to stake crypto","post_excerpt":"What is crypto staking and how does it work? How to get a significant passive income from staking cryptocurrencies? How do you profit from proof of stake? Choosing the best staking platform for today.","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"how-to-stake-crypto","to_ping":"","pinged":"","post_modified":"2023-02-28 13:37:25","post_modified_gmt":"2023-02-28 13:37:25","post_content_filtered":"","post_parent":0,"guid":"http:\/\/78.47.81.216\/?p=954","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":743,"post_author":"7","post_date":"2022-12-25 15:26:01","post_date_gmt":"2022-12-25 15:26:01","post_content":"<!-- wp:image {\"id\":746,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2022\/12\/NFT-farming-what-it-is-and-how-it-works-today-1024x576.jpg\" alt=\"\" class=\"wp-image-746\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p>Obviously, the concept of <strong>NFT farming<\/strong> came to us from the <strong>crypto <\/strong>industry and is firmly entrenched as a good way to generate passive income from <strong><a href=\"https:\/\/blog.alphaguilty.io\/a-beginners-guide-to-token-offerings\">tokens<\/a><\/strong>. If you are new to the field of <strong>crypto <\/strong>and are only just beginning to grasp the essence of NFT, you might have wondered about the possible relationship of the term to farming in its traditional sense. Of course, there is no correlation here, and we will be talking about completely different things. If you want to learn even more about NFTs - check out <a href=\"https:\/\/blog.alphaguilty.io\/ultimate-nft-guide-all-you-need-to-know-about-nft\">this ultimate guide<\/a> to them by our CEO, Mykhailo Sitalo!<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":744,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2022\/12\/image-16.png\" alt=\"\" class=\"wp-image-744\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p><strong>NFT farming is a new<\/strong> efficient way of profiting, in which both beginners and experienced <strong>crypto <\/strong>enthusiasts are interested. People who used to focus exclusively on subjects related to <strong><a href=\"https:\/\/blog.alphaguilty.io\/what-is-a-cryptocurrency-and-how-does-it-work\">cryptocurrency<\/a> <\/strong>and <strong>digital assets<\/strong> are increasingly interested in NFT. That's why the topic of <strong>farming and NFTs<\/strong> will be very relevant now.\u00a0<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Today we're going to talk about <strong>yield farming and NFTs<\/strong> in more detail, so you'll have fewer questions. As usual, we will begin with the basics and delve into the meaning of NFT farming.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>What\u2019s <strong>yield farming<\/strong>?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The most important change in cryptocurrencies over the past two years has been a shift in focus toward <strong>decentralized <\/strong>finance - <strong>DeFi<\/strong>. Let's go into more detail here:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>It is a system of <strong>decentralized <\/strong>applications that sit on top of <strong>blockchain <\/strong>networks (mostly Ethereum) and function autonomously, without the involvement of any governing.&nbsp;<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li><strong>DeFi <\/strong>projects use open-source software and offer users a full range of financial services and products similar to traditional ones.&nbsp;<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>In other words, this is financial services based on <strong>smart contracts<\/strong> that work on top of programmable <strong>blockchains<\/strong>.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>This is where<strong> yield farming<\/strong> is widely practiced. <strong>Yield farming<\/strong> is an investment strategy where users (<strong>liquidity<\/strong> providers) temporarily provide <strong>liquidity <\/strong>to DeFi in exchange for its <strong><a href=\"https:\/\/blog.alphaguilty.io\/a-beginners-guide-to-token-offerings\">tokens<\/a><\/strong>. This is an extremely profitable, albeit risky, strategy, and we will talk a little later about the reasons why.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>But how does this <strong>yield farming<\/strong> work? In answer to this question, we should mention that farming is the process of accruing <strong><a href=\"https:\/\/blog.alphaguilty.io\/a-beginners-guide-to-token-offerings\">tokens<\/a> <\/strong>as a reward for providing <strong>liquidity <\/strong>to a project by placing a certain pair of <strong>tokens <\/strong>in a pool. Now there are more complex pools consisting of several pairs.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>Liquidity <\/strong>pools are a kind of token storage that provides the process of trading a particular currency pair by receiving liquidity from users, who in return receive remuneration from the project depending on their invested <strong>stake<\/strong>.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If we talk about <strong><a href=\"https:\/\/blog.alphaguilty.io\/what-is-a-cryptocurrency-and-how-does-it-work\">cryptocurrency<\/a><\/strong>, DEX is the lever that set orders to buy or sell <strong>crypto<\/strong>, where in turn, the pools of liquidity, are some kind of <strong>smart contracts<\/strong> of these exchanges. A <strong>smart contract<\/strong> distributes a strictly defined amount of <strong>tokens <\/strong>to farmers depending on their <strong>stake <\/strong>in the investment. So, we figured out how it works with <strong>crypto markets<\/strong>, so now it will be much easier to make an analogy with NFT.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Unlike traditional farming, where you need to contribute<strong> digital assets<\/strong> to a liquidity pool to get your share and reward, <strong>NFT farming<\/strong> uses non-fungible <strong>tokens <\/strong>instead. Currently, this can be found mostly in blockchain games, where users can <strong>stake <\/strong>different items to get some <strong>tokens <\/strong>or the contrary. The steaking portal also allows you to place <strong>NFT <\/strong>in storage, from which you can earn rewards.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Before the rise of such farming, unique <strong>tokens <\/strong>were considered exclusive digital collectibles that only some <strong>NFT holders<\/strong> could buy, store and sell. Today, NFT can be used to earn tokens, providing a new type of digital asset and increasing its liquidity. That's why <strong>NFT farming creates liquidity.<\/strong><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>What are the best <strong>NFT platforms<\/strong> for farming?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>NFT <\/strong>intends to change the gaming environment right after music and art. <strong>Gaming platforms <\/strong>based on blockchain use <strong>NFT <\/strong>and implement such farming to maximize rewards for gamers and keep them on the hook as long as possible. Among the platforms that actively use <strong>NFT farming<\/strong> are Zookeeper, Money, Pulsar Farm, and MOBOX. The same rule applies here as with the selection of <strong>NFT marketplaces<\/strong> - pay attention only to reliable and proven options.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>To start <strong>NFT farming<\/strong>, you need to have a <a href=\"https:\/\/blog.alphaguilty.io\/what-is-a-cryptocurrency-and-how-does-it-work\">cryptocurrency<\/a> wallet. Then you need to link your cryptocurrency wallet to certain blockchains. Fund wallet with a <strong>token <\/strong>(depending on the chosen platform). After that, you need to pour that <strong>token <\/strong>into a pool. Eventually, you can receive rewards depending on the <strong>stake <\/strong>in the whole pool.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>What is the risk of <strong>NFT <\/strong>yield farming?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>As with some other methods of passive income, <strong>NFT farming<\/strong> has certain risks:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>From time to time DeFi protocols get attacked by hackers. The only advice here is to invest in <strong>NFT <\/strong>projects with technically strong teams and with security audits from reputable companies.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>In addition to hackers, money can be lost because of trivial mistakes in smart contracts made by the developers of the project.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>It's also easy to misjudge the <strong>NFT <\/strong>project's prospects. The idea may not work, and the competition can be too tough.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>By the time the funds are withdrawn, the exchange rate of the tokens to each other can change significantly. When withdrawing money, the investor will receive the same amount, but in a different ratio of tokens.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:image {\"id\":745,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2022\/12\/image-17.png\" alt=\"\" class=\"wp-image-745\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p>NFT farming is one of the riskiest trends in the cryptocurrency area and based on the facts listed above, it's hard to deny that. So, multiple features of <strong>NFT farming<\/strong> are currently experimental. It is a completely new type of crypto income, and it remains to be seen whether it will stand the great test of time.<\/p>\n<!-- \/wp:paragraph -->","post_title":"NFT farming","post_excerpt":"Why NFT farming considers one of the proven ways to generate passive income nowadays? Everything you need to know about yield farming for your development in the NFT field. What are the biggest risks to NFT farming?","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"nft-farming","to_ping":"","pinged":"","post_modified":"2023-02-28 14:21:25","post_modified_gmt":"2023-02-28 14:21:25","post_content_filtered":"","post_parent":0,"guid":"http:\/\/78.47.81.216\/?p=743","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":776,"post_author":"7","post_date":"2023-01-09 11:16:21","post_date_gmt":"2023-01-09 11:16:21","post_content":"<!-- wp:image {\"id\":780,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/NFT-mint-\u2013-how-much-does-it-cost_-1024x576.jpg\" alt=\"\" class=\"wp-image-780\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p><strong>NFT <\/strong>is the latest concept in crypto that seems capable of resonating with a wider audience and attracting more than just avid crypto-enthusiasts. <strong>NFT <\/strong>continues to interest investors and digital data collectors. Not surprisingly, many people want to <strong><a href=\"https:\/\/blog.alphaguilty.io\/nft-farming\">mint an NFT<\/a><\/strong> and are interested in this question. If you want to learn even more about NFTs - check out <a href=\"https:\/\/blog.alphaguilty.io\/ultimate-nft-guide-all-you-need-to-know-about-nft\">this ultimate guide<\/a> to them by our CEO, Mykhailo Sitalo!<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>NFTs <\/strong>allow many people to earn and multiply their capital many times over in just a few hours. If you are a crypto enthusiast, and you are interested in a hidden gem project, it is vital that you understand what minting is and how to mine <strong>NFTs<\/strong>. How much does it cost - another important issue.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":778,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/image-10-1024x405.png\" alt=\"\" class=\"wp-image-778\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p>Today we will tell you about the <strong>cost of minting<\/strong> and the <strong>NFT minting process.<\/strong> There will be a lot of useful information about <strong>NFT minting<\/strong> not only for newcomers but also for experienced users in the field of <strong>NFT<\/strong>. Do you want to make a great investment or earn more <strong>money <\/strong>by <strong>selling an NFT<\/strong>? So, it is very important for you to look into this subject.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>Minting process<\/strong>: what is it?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Minting <\/strong>an <strong>NFT <\/strong>means <a href=\"https:\/\/blog.alphaguilty.io\/how-to-create-an-nft-easy-to-learn-guide\">creating an <strong>NFT<\/strong><\/a>. So, <strong>minting <\/strong>is the act of publishing a token. The most popular blockchain for <strong>NFT <\/strong>creation is the<strong> Ethereum blockchain<\/strong>. NFT minting is the process of publishing a unique digital element on the blockchain, this creates an immutable record of authenticity and ownership. Once minted, the token can be bought, sold and traded.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In other words, <strong>minting <\/strong>is the operation of creating a token with its registration in the <strong>Ethereum blockchain<\/strong>. So, data about the <strong>NFT <\/strong>and its author will be included in the network.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Before <strong>minting <\/strong>an <strong>NFT<\/strong>, the creator can choose token settings, including royalty requirements - rewards for reselling it on the <strong>NFT marketplace<\/strong>. There are also a few other points to consider in more detail:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li><strong>Minting <\/strong>involves <strong>NFT transactions<\/strong> with charges. This is usually an expensive feature involved in the creation of such a token.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>You must have various items that you can treat as your <strong>NFT collection<\/strong> (most often images). To <strong>create NFTs<\/strong>, you will need a wallet.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>When updating the items selected on the chosen platform and <strong><a href=\"https:\/\/blog.alphaguilty.io\/how-to-create-an-nft-easy-to-learn-guide\">creating NFTs<\/a> <\/strong>is complete, you can put them up for sale. From there you can sell <strong>NFTs <\/strong>and get your <strong>money<\/strong>.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>As security measures for beginners, it is recommended to create a standalone wallet for each <strong>minting <\/strong>and each platform with minimal funds in the account, so that in the case of theft or hacking the user does not lose your investment.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>\u0421ost of minting an NFT<\/strong><\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>When it comes to the <strong>cost of minting<\/strong>, it is very important to be aware of the features involved. The <strong>cost <\/strong>will be affected by the platform you use to mint the NFT and several other factors, which we will discuss next. When you need to<strong> <a href=\"https:\/\/blog.alphaguilty.io\/nft-farming\">mint an NFT<\/a><\/strong>, you immediately wonder about the <strong>cost <\/strong>of the process.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:table -->\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Blockchain<\/strong><\/td><td><strong>Cost<\/strong><\/td><\/tr><tr><td>Etherium<\/td><td>0.01 - 0.05 ETH<\/td><\/tr><tr><td>Solana<\/td><td>0.00001 SOL<\/td><\/tr><tr><td>Polygon<\/td><td>Free (but considering marketplace charges)<\/td><\/tr><tr><td>Tezos<\/td><td>0.08 - 3.6 XTZ<\/td><\/tr><tr><td>Cardano<\/td><td>0.17 - 1.5 ADA<\/td><\/tr><tr><td>WAX<\/td><td>0.13 - 13 WAXP<\/td><\/tr><tr><td>Avalanche<\/td><td>0.008 - 0.02 AVAX<\/td><\/tr><\/tbody><\/table><\/figure>\n<!-- \/wp:table -->\n\n<!-- wp:paragraph -->\n<p>So, in addition to the <strong>cost <\/strong>of production, factors affecting the <strong>cost <\/strong>of <strong>minting <\/strong>will include the time of the day. <strong>Minting <\/strong>is cheaper at night and the <strong>cost <\/strong>is smaller because there will be less traffic then. On the other hand, if you are <strong>minting <\/strong>during the week, the <strong>cost <\/strong>may be more expensive because there is more online activity during that time.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Newcomers to the crypto sphere may think that the process is not so complicated and is overpriced. However, many factors come into play. They vary on a large number of platforms. The <strong>cost to mint<\/strong> can also increase dramatically due to commission. Here are some factors you may want to consider that greatly affect the <strong>cost<\/strong>:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>The gas fee is one of the most important <strong>costs <\/strong>for this process. It is a kind of compensation for miners.&nbsp;<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Some platforms may allow you to create or <strong>mint NFTs<\/strong> without the previous options, but you have to pay sales charges.&nbsp;<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Charges for creating an account depending on the platform you choose to create your NFTs. So, the selected platform also has an <strong>impact on the cost.<\/strong><\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>So, how <strong>much does it cost<\/strong>? An <strong>NFT collection <\/strong>is a pretty exciting idea, but not when you hear about associated <strong>costs<\/strong>. The <strong>cost of creating <\/strong>such a token will range from $0.1 to $170.&nbsp; At peak times, the <strong>cost of creating<\/strong> can be $300 or more. When With Ethereum, you can run into high commissions that can reach over $500 at the busiest times.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>The distinction between <strong>minting <\/strong>and buying an <strong>NFT<\/strong><\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>When we buy a token on the <strong>NFT marketplace<\/strong>, we are only getting it from the previous holder. You can only mine a token by taking part in the original distribution. That's why you have to pay the <strong>cost to mint<\/strong> it.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>That is, <strong>minting <\/strong>an <strong>NFT <\/strong>means buying it for the first time. Some mints are free (you only need to pay for gas), but most often the project sets a certain selling <strong>cost<\/strong>. In the process of <strong>minting<\/strong>, users buy up all the <strong>NFT <\/strong>and then sell it on the <strong>NFT marketplaces<\/strong>.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Another feature of the <strong>mint <\/strong>is that the buyer cannot choose the <strong>NFT <\/strong>when buying. You simply pay the <strong>cost <\/strong>of the <strong>mint <\/strong>and get the token at random. It can be either the most common specimen or a very rare<strong> advanced NFT<\/strong>. That's why the <strong>cost to mint<\/strong> is justified.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Why is NFT so expensive?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>When newcomers in this field need to <strong><a href=\"https:\/\/blog.alphaguilty.io\/nft-farming\">mint an NFT<\/a><\/strong>, many of them wonder why these tokens are so expensive after all. Here we should say that cryptocurrency and NFT work the same way, the only difference between them is the concept of nonfungible.\u00a0<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>This technology has made it possible to prove ownership of digital items and their authenticity. Now, despite the millions of copies of a meme on the Internet, it is possible to prove the originality of one of them. This is why the<strong> cost to mint<\/strong> such tokens can be inflated.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Crypto enthusiasts can also place their tokens on Polygon for free. There is no initial cost here when you create an NFT. However, there is a special service fee, which is deducted from the selling price of the token.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":777,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/image-9-1024x680.png\" alt=\"\" class=\"wp-image-777\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:heading -->\n<h2>Why are minting costs so volatile?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Different types of platforms have different processes, so they require different fees. Even if you use the same platform for different tokens, prices can also change. How <strong>much does it cost<\/strong> to create such tokens? You will encounter several things that can affect charges:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Transaction speed.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Project quality.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Data size.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Gas fees.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Minting time.&nbsp;<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>Transaction charges respond to supply and demand on the network. So, for example, when demand is high, all charges will be high.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>So, we told you how much it costs to create such tokens and what the cost depends on. Now you know what you need to consider when you're going to mint NFT.<\/p>\n<!-- \/wp:paragraph -->","post_title":"How much does it cost to mint an NFT?","post_excerpt":"How much will the NFT mint cost you? Everything you wanted to know about the minting process and how it differs from buying. 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