Staking Guide: Passive Income with Crypto
Staking is one of the most popular ways to earn passive income with your cryptocurrencies. Think of it like a savings account: you deposit your coins and receive "interest" in the form of new coins.
Mining vs. Staking: Why Staking is Better for Beginners
In the past, Mining (like with Bitcoin) was the way to secure a network. However, this requires extremely expensive specialized hardware (ASICs) and consumes vast amounts of electricity. It is hardly profitable for individuals today.
Staking is the modern alternative (used by Ethereum, Cardano, Solana, etc.). Here, you "stake" your coins to secure the network. You don't need expensive hardware, and it's much more energy-efficient. You can start with small amounts and get rewarded with new coins.
How Can I Start Staking?
There are mainly two easy ways for beginners:
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1. Staking on an Exchange (The Easiest Way)
Platforms like Binance offer simple "Staking" or "Earn" products. You just select the coin you want to stake, and the exchange handles the rest for you.
- Pro: Extremely simple, just a few clicks.
- Con: You don't have full control over your coins (not your keys...), and the exchange keeps a small portion of the rewards as a fee.
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2. Liquid Staking (The Flexible Way)
On platforms like Lido, you can stake your ETH, for example, and receive a new token (stETH) that represents the value of your staked ETH.
Pro: Your invested capital remains "liquid." You can continue to use the new token (stETH) in the DeFi world while your original ETH earns interest.