Cryptocurrency staking is a way to make money by blocking Proof-of-Stake (PoS) cryptocurrencies. Many people view staking as passive income.
How to make money by staking cryptocurrencies
There are two primary approaches to staking cryptocurrencies. The first method involves setting up a node – a network node used to process transactions in the project network as a validator. This method is suitable for individuals in the crypto community who have a good understanding of the market and the technical aspects of the work.
Developers of crypto projects whose coins can be staked typically provide detailed instructions on their platforms for setting up and running a node. For example, here are the instructions for starting Ethereum staking yourself.
To act as a validator, the system may require the user to hold a large amount of cryptocurrency in their account. For instance, for Ethereum solo staking, you will need to lock 32 ETH (over $70,000) at the time of writing this review. This amount may be unaffordable for many. Therefore, there are alternative options for staking crypto in the digital asset market.
The second option is delegation. This means that the user utilizes a pre-existing infrastructure to stake coins. This method of work in the crypto community is known as Staking-as-a-Service (SaaS). In this case, the user transfers transactions for processing to a validator for a certain fee – someone who has their own node in the cryptocurrency network.
Another option is staking through pools, where you can start staking with almost any number of coins.
There are many staking services on the market. There are separate platforms for staking, for example NEXO.
Many crypto exchanges also offer staking services. For example, you can stake crypto on OKX.
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