Staking Crypto for Passive Income

Staking crypto is one of the newer and easier ways to make passive income. Is it for you? It is for Passive Income’d!

Start staking coins in select projects that would otherwise be sitting in your cold wallet or exchange account for passive income. We stake, therefore we earn.

We’ll start by telling you what staking is. After that, we’ll tell you why you should always stake your crypto when you can and what projects to start with.

Once you have staked your tokens you can earn staking rewards on top of your holdings. You’ll then grow them further using the compound interest effect and building out those future rewards.

Some blockchain protocols allow you to earn additional crypto by contributing to the network in a meaningful way.

Many of the exchanges and even hardware or software wallets like Exodus wants their customers to be able to benefit from these protocols.

What happens when staking crypto?

Staking is the process of actively participating in transaction validation similar to mining on a proof-of-stake (PoS for short) blockchain.

These blockchains offer anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards. In other words, it is a bit different than earning passive crypto income from lending it out.

How does staking crypto work?

When a minimum crypto balance is met, a node deposits that amount of cryptocurrency into the network as a stake which is similar to a security deposit at your bank.

It can be a bit technical, but the size of a stake is directly proportional to the chances of that node being chosen to forge the next block. We know, it can get a bit technical. However, stick with us.

When the node successfully creates a block a key thing happens. The validator receives a reward! Similar to how a miner is rewarded in proof-of-work chains.

Validators lose part of their stake if they double-sign or attempt to attack the network for personal gain.

Coins and cryptocurrencies with reliable returns.

These are the types of coins and fiat currencies that you can earn rewards on through the staking services mentioned in this article. Coinbase and Kraken are two of the “easier to use” places for beginners or people with lower technical skills.

If you are just starting out with staking, consider putting a small amount into each of the below projects to “get your feet wet” and understand staking better. $25 or $50 in each project is an example and then scale up as you can afford to do so.

Project / Symbol / Average Annual Returns

Ethereum Staking - $ETH - 5% to 7%
Cardano - $ADA - 4% to 6% 
Polkadot - $DOT - 12% 
Cosmos - $ATOM - 7%
Solana - $SOL - 6% to 7%
Tezos - $XTZ - 5% to 6%
Algorand - $ALGO - 5% to 6%
Kava - $KAVA - 20%
Kusama - $KSM - 12%

What is inflation?

Assets such as Algorand as shown in the above earn rewards via inflation, or community rewards.

With inflation, new tokens are added to the network at a rate determined by the protocol. Those tokens are then distributed to holders as rewards for your participation.

Speaking of inflation, if you are not getting an annual inflation raise on your salary to keep up then staking crypto might be a good way of making up for that.

How does earning rewards with Coinbase and Kraken work?

As long as you’re eligible and hold the minimum balance of a eligible crypto, you can earn rewards on Kraken or Coinbase. There is no further work necessary on your end after you setup staking – passive income anyone?

Staking at Coinbase and Kraken are two of the easiest exchanges for the non-technical.

You’ll need to sign up at Coinbase and also complete the Kraken signup process to start staking crypto at them. Both of those links will get you some free crypto to start staking with if used wisely.

You retain full ownership of your staking crypto.

Coinbase and Kraken both provide a secure infrastructure for reliable staking. It is an important trade-off to take a small annual percentage rate cut for these exchanges to provide the “easy infrastructure” for you.

For some assets with lockups at the protocol level, exchanges may withhold a small amount of that crypto to assure that all other customers have liquidity when they need it. This helps other users cash out their crypto as needed. You included.

Exchanges take a commission on all rewards received. The return rate for our customers reflects this commission and the actual amount of your crypto that was staked.

As mentioned, commissions help provide the technology and support needed to make your staking experience easy and hands-off.

Other Interesting Upcoming Projects for Staking Crypto.

In conclusion, there are a few projects not available at the time of this article. Other interesting projects where you can participate in crypto staking is Chainlink, Bumper Finance’s $BUMP token, and Hedera Hashgraph.

With the exception of Bumper Finance upcoming launch, there are no dates yet for staking Chainlink or Hedera Hashgraph for rewards yet.

Check back here on Passive Income’d as we are following the availability and will report when staking launches for those projects. There are many reasons to stake, above all you can earn income passively.

Staking Crypto at Kraken and Coinbase

Staking Crypto for Passive Income
Staking Crypto at Kraken and Coinbase
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