Proof-of-Stake (PoS) is a consensus method that lets network participants have mutual agreement about new transactions being integrated into the blockchain. Often, staking is the typical way of generating passive income with crypto. It’s an energy-efficient alternative to crypto mining and lets you generate sustainable passive income.
PoS blockchains, like Ethereum, allow their native token holders to participate in the validation process – specifically, confirming transactions. Essentially, token holders stake their coins as validators or delegate them to earn staking rewards. Unlike miners, validators don’t need expensive mining rigs – they stake tokens to start earning rewards.
The amount you will earn from staking depends mainly on the asset itself. Besides, the value of the tokens you stake can appreciate or depreciate during the staking period. If the token value declines, so do your earnings, and vice versa. Ethereum (ETH), Cosmos Hub (ATOM), Tezos (XTZ), and Cardano (ADA) are some of the popular digital currencies you can consider staking. Apart from earning rewards, you will be contributing towards securing your favorite blockchain project.
As the crypto market is facing one of the most challenging bear markets in its history, generating passive income on your crypto holdings is a potential way to counterbalance losses during bear markets and crashes. It’s also a more lucrative strategy for growing your portfolio than the traditional HODL (Hold Onto Dear Life) strategy.
You can consider several strategies when looking for ways to generate passive income with crypto. Each strategy provides unique opportunities and challenges; some have higher risks but potentially better returns than others, while others require some technical knowledge to use them.
Nowadays there are several crypto staking projects such as:
Is the system of multicurrency daily drops for all BFG token holders. Every 24 hours, the Staking pool releases 3% of the total profit of the platform in each currency. The amount is shared among all users who hold BFG tokens. The more BFG tokens, the greater income! BFG token became a tradable asset! Buy and Sell BFG tokens anytime!
The CEX.IO Staking service empowers users to earn staking rewards regardless of their technical knowledge and crypto experience in cryptocurrency. To start earning staking rewards, you just need to store stake-able assets in your CEX.IO account, and we will do the rest. You will receive the rewards as long as stake-able assets are stored in your balance.