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By Ruchi Sharma
If you want to own a non-fungible token (NFT) but don’t have the money to purchase it, don’t worry you can rent it! NFT renting allows users to temporarily own special NFTs without buying them. How does NFT renting work and how do you determine if it is right for you?
NFT Renting
NFT renting is borrowing an NFT for a set period. This is made possible using a smart contract that acts as an escrow and generally requires some deposit. The NFT is to be returned to the original owner at the end of the rental period.
NFT renting has become a popular trend among cryptocurrency investors, as it allows them to gain exposure to new NFTs without actually buying them.
Why Rent An NFT?
There are several reasons people rent NFTs:
Source of Income
For the lender, renting can serve as a source of income. Lenders can charge a rental fee for the use of their NFTs.
High Cost of NFTs
Many people cannot afford to buy an NFT outright. Renting allows them to enjoy the privilege of owning the asset without making a large upfront investment.
Need for Flexibility
Some people may only need or want to use an NFT for a short time; renting allows them access to the NFT when needed.
Fear of Obsolescence
Investors may be hesitant to buy an NFT outright because they fear it may lose its value or become obsolete soon after they buy it. With NFT renting, you can let go of the NFT when you feel it is no longer useful.
Lack of Storage Space
More storage space may be required to keep a purchased NFT. Renting offers a way to enjoy the benefits of the NFT without finding storage space.
Desire to Try Before Buying
Renting allows you to try out NFTs before buying them.
It’s Time to Rent Your NFTs
NFT renting prevents collectors from selling their assets at throw-away prices because of an urgent need for funds. Though nobody can safely predict the next NFT trend, it’s safe to say NFT lending will continue to create alternative investment opportunities in 2023 and beyond by offering liquidity options to a notoriously illiquid market.
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