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By Ruchi Sharma
NFT renting gives you the benefits of having an NFT as well as the utilities that come with it for a limited period without the financial commitment of investing in it.
There are two forms of NFT renting: collateral renting and non-collateral renting.
1. Collateral Renting
In collateral renting, the smart contract allows for the documentation of the renting terms and conditions and other pertinent information. These terms and conditions include returning the asset before the contract ends, providing collateral, and more.The NFT lending process is complete when the borrower regains possession of their collateral.
2. Collateral-free Renting
Collateral-less or collateral-free renting is like collateral-based renting, but it’s easier, offering significant benefits to both the asset owner and renter. This form of NFT renting does not necessitate lenders to give up collateral.
Can You Make Money with NFT Rental
NFT renting is very popular among people who play games for financial gain, as many NFT games require a substantial initial investment before you can begin earning from them. This can range between $1,000 and $10,000 (or more).
You can buy the required NFTs for these games and lend them to gamers who cannot afford them but still wish to play. In exchange the players give the lender a portion of the cryptocurrency they earn when they engage in online combat, farming, or racing.
Takeaway on NFT Renting
NFT rental will only evolve and grow with time, with the demand for NFT rental marketplaces being tied to liquidity and financial use cases. Moreover, NFT renting will empower those wishing to participate in the web3 evolution, whether they own a digital asset or do not have the financial ability to buy them.
To know more about the fascinating world of NFTs, click here: https://www.youtube.com/watch?v=60-nQ3la0a8
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