💰 How to Make Passive Income From Staking

💰 How to Make Passive Income From Staking

Previously, our blog article topics have covered a broad view of cryptocurrency, and profiled Bitcoin, Ethereum, a range of other altcoins, as well as the Proof of Stake consensus mechanism.👀 In this article, we’ll explain the process of how to earn a passive income from staking your crypto, as well as different staking platforms, types of staking, along with its benefits and risks. Here is our brief guide to get you on a clearer path to understanding.


👉 Staking cryptocurrency is a popular way to earn passive income💰 on digital assets. It's like a savings account with attractive APY. Staking supports Proof of Stake (PoS) blockchains, secures the network, and generates new coins. 

By locking up assets, individuals can earn additional crypto as rewards🎁. Validators stake cryptocurrency to validate transactions, and others can delegate their crypto to earn rewards too. Staking is financially appealing and requires minimal technical knowledge. It's a rewarding option for crypto investors holding assets long-term. 

🤷‍♂️ How does staking work? 

Staking allows crypto owners to vouch for transaction accuracy on a blockchain network. The PoS consensus mechanism selects honest participants. Validators purchase and lock away tokens as their stake, incentivizing honesty. In return, they receive rewards in the native cryptocurrency. 

Each blockchain has its own rules, like Ethereum's requirement of staking at least 32 ether. 🔄💰


Some of the more popular platforms that offer staking include:


Staking can be done in two ways: as a validator or through delegation. Setting up as a validator requires technical expertise, infrastructure and high costs💸. Delegation is more common, where you delegate your coins to a validator who maintains a node for you, taking a commission from rewards. A crypto wallet is used to connect your tokens with the validator's staking pool. Validators run staking pools and raise funds through this delegation process. Penalties exist for misconduct, including slashing of funds. Research validators' track records and policies before delegating. Staking-as-a-service (SaaS) companies like Staked, Figment, MyContainer, Stake Capital and stakefish among others have emerged. 👉Delegating coins doesn't transfer custody; you retain ownership. Rewards are usually automatically reinvested, but some platforms offer opt-outs.

Another popular way of staking is through a cryptocurrency exchange💱. Several popular cryptocurrency exchanges, including Binance, Coinbase, Kraken, Bitfinex, OKEx, KuCoin, and Okcoin, offer staking services. Staking availability may be subject to jurisdictional restrictions based on regulations⚖️. The process of staking on exchanges is generally similar, but details vary, such as available cryptocurrencies, fees, and locking periods. Some exchanges have staking options directly visible in their menus, while others may categorize it under "Earn" alongside other passive income methods.


✔️ Passively and easily earn a steady stream of income💰

✔️ Grow your crypto portfolio📈 and earn interest on your holdings with potentially high returns 

✔️ Supports a cryptocurrency’s network by maintaining security and efficiency🛡️

✔️ Can be a more secure way to store your crypto🔒

✔️ Unlike crypto mining, more environmentally friendly🌳 and doesn’t require special equipment

❌ Locking up coins can render them unusable during that period of time draining liquidity🚫💧 

❌ Long unstaking periods⏳

❌ High volatility of prices can lower value of rewards📉

❌ Loss of crypto possible as staking pools can be hacked👤 and crypto exchanges can fail


Is crypto staking worth it? The rewards and rates for staking vary based on factors such as cryptocurrency, network demand, and chosen method. Staking is ideal for long-term investors who can tolerate short-term price fluctuations. Selecting staking pools with low fees and a reliable track record increases the potential for maximizing rewards and minimizing risks. 

Will you need access to your crypto? 

Crypto staking requires careful consideration of the commitment period and potential limitations on selling or trading assets. It's crucial to review the terms before staking and anticipate the potential need for withdrawals.

Do you believe in the project? 

The decision to stake crypto often depends on your long-term investment confidence💪📈🚀. If you believe in the value of a specific network like Ethereum, short-term price fluctuations may not impact your willingness to sell. Staking can provide additional value for a crypto investment you intend to hold onto. 


Crypto staking is an attractive option for generating passive income and maximizing cryptocurrency holdings while promoting eco-friendly practices♻️. However, market volatility and locking periods should be considered for potential impact on returns and liquidity. Thorough research and risk management are important. 

Staking on exchanges has gained popularity among less technically savvy users and those with significant holdings. The trend towards proof of stake is driven by environmental concerns and the ease of scaling new networks💰🚀. It may be pertinent to consider other forms of passive income.

👉 EARNING CRYPTO WITH BLOOM📲.The Bloom shopper rewards app offers another way to passively earn crypto (like Bitcoin, Ethereum and other altcoins) with every purchase made on your Visa card 💳. 

🦉 All you need to do is download the Bloom app, register an account, link your Visa card and shop anywhere using your credit or debit card. 💰 With every purchase, you will earn Bloom Coins by simply using your Visa card💳. The more you use your card, the more Bloom Coins you will earn.🎁 Bloom Coins can be redeemed for in-app rewards and converted into crypto.🆓 Converting crypto on Bloom is free of charge and has no gas fees!💎 Earn exclusive 3x Bloom Coin rewards with a Premium Membership.

The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such. Bloom does not recommend that any cryptocurrency or NFTs should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

Great! Next, complete checkout for full access to Bloom Where You Spend.
Welcome back! You've successfully signed in.
You've successfully subscribed to Bloom Where You Spend.
Success! Your account is fully activated, you now have access to all content.
Success! Your billing info has been updated.
Your billing was not updated.