How to Stake Your Cryptocurrencies and Earn Interest

What is Staking?

Staking cryptocurrencies is a process that involves committing your crypto assets to support a blockchain network and confirm transactions. This is only available with cryptocurrencies that use the “proof-of-stake” model to process payments, such as …

  • Polkadot (DOT)
  • Binance (BNB)
  • Solana (SOL)
  • Algorand (ALGO)
  • Cosmos (ATOM)
  • TRON (TRX)
  • Polgon (MATIC)
  • … and many more

The “proof-of-stake” model is more energy-efficient than the “proof-of-work” model, which requires expensive mining devices such as powerful computers or ASIC devices (application specific integrated circuit) to solve mathematical equations.

Staking platforms tend to offer high interest rates for staking your cryptocurrencies, it’s a very attractive and lucrative way to generate some extra income. The main benefit of staking is that you can earn more of the cryptocurrencies that you’ve chosen to stake, and in most cases, becasue of the high interest rates, you can earn anything between 5% to 20% per year (APY). I doubt you’ll get that kind of return from a high-street bank!

 

Check out the LIVE show in which we briefly talked about cryptocurrency staking. Time stamp: 1:06:56.

Disclaimer: Every investment is a risk! Always remember to only invest what you can and are willing to lose. I’m not a financial advisor or professional in crypto currency, nor am I giving you any proven professional advice. Invest at your own risk.

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You can also buy it locally from (UK) Reseller – Monix

 

Benefits of Staking Your Crypto

Here are some of the benefits of staking crypto:

  • It’s an easy way to earn interest on your cryptocurrency portfolio. HODL.
  • You don’t need any special equipment for crypto staking.
  • You just need a crypto wallet that allows staking such as Trust Wallet, Crypto DeFi, Exodus etc.
  • Staking can help maintain the security and efficiency of the blockchain.
  • It’s definitely more environmentally friendly than traditional crypto mining.

 

What is HODL?

Now, you’ve all heard the word “HODL” which is an acronym for Hold On for Dear Life. People who tend to keep and hold cryptocurrencies no matter the environment (up or down) are often known as “Hodl-ers”. They are in it for the long run. It’s also quite a common word to describe people who are staking their cryptocurrencies too. That’s because you need to commit (or lock-in) your assets for a certain length of time, usually 30, 60 or 90 days. After which, you will be abe to redeem your full stake amount, and collect both the principal and all the interest earned during that period. It’s almost like a time deposit offered by the banks. 

Warning: Redeeming your assets early before the agreed time, could result in loss of all interest earning and may inccur fees.

 

Wallets that comes with Staking (ready built-in)

  • Trust Wallet – Only has 6 cryptocurrencies ready for staking, including BNB, KAVA, ATOM, ALGO, XTZ and TRX. All offer good interest rates. Minimum lock time of 21 days. Redeem period also 21 days.
  • Crypto DeFi Wallet – Offer an extensive list of cryptocurrencies for staking, all with high interest rates. No mention of lock period or redemption period, though I assume it’s your standard 21 days.

 

  • Exodus Wallet – Offers only a limited amount of stakeable cryptocurrencies, but it’s by far the simpliest to implement. Interest rates vary and redeem period is usually between 2-21 days, depending on the cryptocurrency you chose to stake.
  • Binance Exchange – By far the most extensive choice available in terms of stakable cryptocurrencies. They offer good interest rates and fast redemption period. Locked staking options include 30, 60 or even 90 days.
Disclaimer: Every investment is a risk! Always remember to only invest what you can and are willing to lose. I’m not a financial advisor or professional in crypto currency, nor am I giving you any proven professional advice. Invest at your own risk.

 

What to do Next?

Now that you’ve got some basic understanding of staking cryptocurrencies, you can start staking right away if you already hold some cryptocurrencies. Use the cryptocurreny wallets mentioned above and away you go. There’s no extra requirements needed, and it doesn’t require any work on your part.

If you’re still unsure, I recommend to do a little more research on what type of cryptocurrencies you wish to stake.

 

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Winston has over 20 years of experience in the I.T. Industry. He launched Funky Kit with the aim to capture a wider audience worldwide. His knowledge in PC hardware is very distinguished, not only publishing enjoyable reviews but also writing great articles.