What Is Cryptocurrency Staking? A Guide To Making Passive Earnings

FinanceFeeds Editorial Team

There’s definitely been occasions where you’ve thought of ways where you can make more money, fast, and without even having to leave your house. It’s sort of the ultimate dream, isn’t it?

While not necessarily a realistic one, it doesn’t mean that it’s not possible. Investing in crypto staking can be a viable option to ensure a long-term commitment to earning more crypto and rewards.

Let’s focus on the basic terms you need to know and how you should go about crypto staking.

What is passive income?

A passive income is any sort of earnings that come your way without having to put in any significant effort or labor. Normally, we are referring to earnings from investments, from acquired assets and from sharing or selling those assets. It may not need any day-to-day attention, but it does require some consistent work now and then.

What is crypto staking?

One example of such an investment that can get you passive rewards is crypto staking. Staking your cryptocurrencies means that you lock up a certain portion as a future investment with the aim of gaining rewards through an exchange over a period of time. Crypto staking is often compared to the more traditional bank deposit model, where your cash is deposited in a high-yield savings account and the bank awards you an interest based on your account balance.

That’s why crypto staking is associated with passive income and can be an investment that can generate high frequency of crypto assets.

Crypto staking is possible for cryptocurrencies that use the proof-of-stake mechanism model. Currently, the number of cryptos that use this is rather limited, but it can be done through various popular cryptocurrency exchanges.

What is the proof-of-stake model?

The proof-of-stake model is a consensus mechanism. It’s a way for blockchains to validate transactions. It is a more scalable and efficient option that can handle a higher number of transactions and it requires new assets to be validated before they get added to a blockchain network.

Due to its nature, crypto staking does not require daily attention or effort. By holding onto your cryptocurrencies it means you can end up earning passive rewards.

Risk Warning: Cryptocurrencies are highly volatile and trading can result in the loss of your invested funds. Before investing you should be aware that cryptocurrencies may not be suitable for all investors. You should therefore carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition and not invest money that you cannot afford to lose.

Read this next

Retail FX

Interactive Brokers adds 680k accounts, daily trades hit two-year high

Interactive Brokers LLC (NASDAQ: IBKR) recorded 2.44 million daily average revenue trades (DARTs) in February 2024, marking a notable increase from the 2.2 million transactions observed in the previous month. This figure represents the highest DARTs reported in two years, indicating an 11 percent monthly surge and a 15 percent year-on-year rise.

Retail FX

Financial Commission adds Ultima Markets to membership roster

Multi-asset brokerage firm Ultima Markets, operating under the trading name Ultima Markets Ltd, has been granted membership of the Financial Commission, marking the most recent inclusion into the ranks of the self-regulatory organization.

Digital Assets

Bitcoin hits fresh record high amid massive short squeeze

Bitcoin has surged to record highs against both the euro and the pound, hitting €60,447 and £51,736 respectively on Coinbase. The primary cryptocurrency has seen an almost 7% increase in the past 24 hours.

Digital Assets

US court rules crypto trades as securities in Coinbase case

A US court ruled that trading crypto assets on platforms like Coinbase constitutes securities transactions.

Market News

Weekly Data: Oil and Gold: Brief Review before the NFP

This preview of weekly data looks at USOIL and XAUUSD where economic data coming up later this week are the main market drivers for the near short-term outlook.

Institutional FX

FXSpotStream reports lower volumes for February 2024

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for February 2024, which moved lower on a monthly basis.

Fundamental Analysis

Global FX Market Summary: EUR, USD, Gold March 4th,2024

US Dollar Weakness: The US Dollar (USD) is currently struggling to gain strength due to a combination of factors.

Technical Analysis

Bitcoin Technical Analysis Report 4 March, 2024

Bitcoin cryptocurrency can be expected to rise further toward the next resistance level 69000.00 (former multiyear high from January)


Finding Opportunity in Challenge: Why New Regulations Offer a Chance For Business to Get on Top of Data Management

The combination of CESOP, PSD3 and the PSR, has put businesses under new pressures. In this engaging article, André Casterman, Senior Advisor at Intix provides invaluable guidance on how companies can stay ahead of the curve.