Cloud and traditional cryptocurrency mining are far from the only ways to organize passive income in the digital asset market. There are other alternatives that are worth considering. For example, staking of cryptocurrencies can become a source of passive income.

What is cryptocurrency staking

Cryptocurrency staking is a popular option for passive income on digital assets. To earn income, you need to keep cryptocurrency in your account. The presence of coins in the wallet allows the investor to join the project network in order to ensure the performance of its blockchain. As a gratitude for such work, the user receives a reward in the form of cryptocurrency.

Many investors see staking as an additional source of income through which savings can generate income.

What cryptocurrencies can be staked

All cryptocurrencies for staking work on the basis of the PoS mining algorithm (Proof-of-stake (proof of ownership). This approach to mining digital assets is more environmentally friendly than alternatives, since it does not require a large amount of computing equipment to be connected to the asset network.

In the context of mining on the PoS algorithm, it looks like this:

  • The network analyzes the amount of assets on user accounts. Whoever has more of them will most likely get the right to record information about transactions in the blockchain (what this process is for, we figured out earlier). For this, the computing power of the user’s equipment will be used. Therefore, staking is possible only while the computer or other devices are turned on.
  • In return for such work, the user will receive a reward in the form of the project’s cryptocurrency.
  • The process is fully automated and does not require any participation from the owner of the coins.

For comparison, in order to mine digital assets on the PoW algorithm (Proof-of-work (proof of work), you need to connect equipment (computers, computer installations or special devices – ASICs) to the cryptocurrency network). The more computing power of the devices at the disposal of the user, the his income will be higher.

In PoW mining, millions of devices around the world compete for the right to record transaction information on the cryptocurrency blockchain and receive a reward. At this time, due to the work of a large number of machines, the environment suffers. Therefore, many popular crypto projects, including Ethereum, are striving to switch to a more environmentally friendly PoS.

How to make money staking cryptocurrencies

After we figured out what staking cryptocurrencies is, it’s time to talk about getting started. Here’s how to start staking:

  • You need to select the cryptocurrency of interest and make sure that the project supports staking.
  • Next, you need to find a platform or wallet that supports staking of the cryptocurrency of interest.
  • The next step is to buy cryptocurrency. After acquiring a coin, it must be placed on a platform or wallet that supports staking.
  • Usually, payments to PoS miners of the system are made once a month. Most platforms and wallets that support staking cryptocurrencies have instructions on how to work with each specific coin.

Best cryptocurrencies for staking

The editors of BeInCrypto have studied all the options available on the market and compiled the top cryptocurrencies for staking.

In the first place, as part of the answer to the question of which cryptocurrencies can be staked, was the Algorand coin. First you need to download the project wallet – Algorand Wallet. It is available in two versions: for IOS and Android users.

After that, you need to transfer Algorand coins to your wallet. With the arrival of the cryptocurrency, the system will start staking it. The maximum profitability of Algorand PoS mining in the wallet is 6%. The system distributes rewards approximately every 9 minutes and does not charge a commission on the rewards transferred to the user’s account.


There are two ways to stake Cardano: through participation in a pool, through running your own pool. Profitability, in this case, will be up to 7%. To start earning, you need to buy project tokens (Ada) and place them in the pool.


Polkadot is often referred to as the “killer of Ethereum” due to the high performance of its blockchain. Cryptocurrency also interested the participants of the crypto community with a good profitability of staking. The maximum reward available for Polkadot stakers is 16%.

To get started, you need to buy project tokens – DOT. They will then need to be placed into a wallet or platform that supports Polkadot staking.


Tezos is considered by many to be the project that popularized the staking of cryptocurrencies. Coin investors often refer to PoS mining as baking. Tezos staking returns up to 6%.

To earn money, you will need to buy coins, and then transfer them to a wallet or platform that supports cryptocurrency staking.

How much can you earn by staking cryptocurrencies

The level of earnings is one of the points in the answer to the question of how staking cryptocurrencies differs from mining. Unfortunately, PoS miners earn less than their counterparts focused on PoW cryptocurrencies. At the same time, it is important to take into account that for staking you do not need to purchase additional equipment, connect it to the network and regularly conduct diagnostics.

Income from staking cryptocurrencies may vary, depending on the chosen coin. In most cases, payments are 2-15% per annum of the amount of assets in the account.

Cryptocurrency staking on the exchange and alternative methods of PoS mining

You can start staking cryptocurrencies, including on many popular digital asset exchanges. Here are some examples of trading platforms that offer such services:

  • Binance
  • Coinbase
  • Bitfinex
  • Kraken
  • Huobi
  • Poloniex
  • OKEx

For example, there are over 20 staking coins on Binance. The yield of some cryptocurrencies can reach up to 16%. Unlike wallets issued by digital asset developers, exchanges charge a fee for paying rewards to stakers.

Similar offers can be found on platforms called staking providers. Within the walls of such sites, developers collect profitable coins for stakers.

An alternative to staking can be earnings through the blocking of funds for the needs of DeFi projects.


Cryptocurrency staking is one of the options for passive income on digital assets. Anyone can use them.

Before you start staking cryptocurrencies, you need to study the features of the project, staking conditions and information about the available level of profitability. It is also important to choose a platform for work.

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