Make Passive Income Staking Crypto
Everyone (including you) aims to have more money than they can possibly spend, and the good news is — contrary to popular opinion, It’s not complicated.
However, it will require more than listening to motivational podcasts on the internet and reading books on financial independence. You first need to understand the underlying science of wealth creation that millions have used for centuries.
To keep things short and less complicated, let’s say people generate wealth on the principle that the more you earn, the less you spend.
In other words, it is not about how much you can spend but how much you can save and perhaps invest.
Albeit, here’s the twist –saving all your salary, investing in 401k, etc. will give you a decent life but can never lead you to financial liberty. Passive income will make this happen.
If you already know this, then today, we won’t talk about crypto trading, mining, or cold storage. Instead, we will explore the best platforms to generate passive income by staking cryptocurrencies.
What Does Staking Crypto Involve?
Staking is earning rewards for holding cryptocurrencies that provide liquidity to the market. These rewards are generated and distributed on a decentralized blockchain in real-time.
Staking is hosted and served through smart contracts; hence, even if the user interface (UI) goes out of existence, all you need is the Smart Contract address written on a piece of paper, and you should be good to go.
With scammers going as far as hacking twitter accounts of celebrities to steal crypto from the masses, cross-checking the validity of these programs/platforms is not an option; it’s a necessity.
We have done our due diligence, and as of the time of writing, the platforms on this list have been verified to be functional with actual evidence of reward payouts daily.
Difference Between Staking Crypto and Cold Storage
Unlike cold storage, where you buy cryptocurrencies and store for long term (> 6 months) without earning profits if the price remains the same.
Staking crypto is more of like an upgrade because your rewards have absolutely no impact based on crypto fluctuations.
Additionally, staking rewards are calculated in percentages (2% -15%) per annum, so the volume you trade plays a significant role in how much passive income you generate.
For example, staking $50,000 at ~5% will generate more than ROI than $5,000 at the same rate. Nonetheless, these rates are usually subject to fluctuation.
Five (5) Platforms that Generate Passive Income Staking Crypto
Coinbase has been around since 2012, so they are more of a household name in the crypto space. Here is what you need to know about staking crypto on Coinbase:
- There is a minimum amount per crypto stackable on the platform.
- It is available to only residents in France, The Netherlands, United Kingdom, Spain, and the United States (Excluding residents of New York and Hawaii)
- A commission is charged on every reward you earn.
- Dividends above $600 staking on Coinbase are taxable.
Overall, Coinbase is an excellent channel to generate consistent taxable staking rewards.
Crypto.com guarantees everyone a fixed 8% per annum paid in weekly installments on ALL supported stable coins. The rate increases to 12% for supported Stablecoins and 18% for their own CRO tokens.
Although there are no known restrictions based on geography, customers must complete mandatory KYC, upon which certain US residents could face restrictions on some currencies like USDT, XLM, EOS, etc.
You can withdraw your earning and capital as frequently as you desire, but CRO holders need to commit a minimum of 3300 CRO tokens for six months.
The list will be incomplete without Binance –the largest cryptocurrency exchange in the world. They have successfully held the title thanks to their generous staking programs promising up to 20% ROI.
Curious about how they’ve been able to make this happen? Well, we might need to go down the proof-of-stake rabbit hole here.
Credits, Swaps, Stacks, Boost are all avenues you can use to stake various cryptos at profitable rates to be rewarded in BNKR tokens.
Bankroll is a new project (2019), but it has succeeded in gaining mass adoption within record time.
Bankroll is a permissionless blockchain poised to empower the community through active and passive rewards. The smart contracts are decentralized and verifiable.
To cap it all, Bankroll offers a lucrative referral program to foster inclusion.
Fashioned like a traditional bank on the Blockchain, BlockFI works by lending your crypto for monthly interest. We have a complete guide detailing how the BlockFi lending and staking program works in this article.
BlockFi is one of the more common cryptocurrency loan companies but there are quite a few now that crypto is becoming more mainstream.
Popular Coins For Staking Crypto
The primary motivation for staking cryptos is the interest rate. Although, TRX, EOS, Dash, to mention a few, are the forefront of interest.
It would be best if you also considered factors like market cap, price, and total volume staked. You can find it a comprehensive guide here.