ether.fi (ETHFI) is a decentralized staking protocol that offers a variety of flexible Ethereum staking and restaking services

, opened up new opportunities for investors to earn ETH rewards while contributing to the network’s security and operations. A plethora of 

 and restaking platforms quickly surfaced in the aftermath of The Merge. Many of these offered 

 services, the primary way of getting around the 32 ETH minimum collateral requirement.

However, most of the staking and restaking platforms in this sphere are based on custodial, permissioned models, with stakers not in control of their keys. ether.fi (ETHFI) is a new player in the field, having launched the bulk of its services in late 2023 to early 2024. It offers a comprehensive suite of Ethereum staking and restaking products in a noncustodial way. With ether.fi, you remain in control of 

 to your staked funds, and can choose from several different staking solutions, each designed with a specific user segment in mind.

) that provides flexible ETH staking and restaking services, helping you to optimize your investment while contributing to Ethereum’s security and decentralization. 

Most staking alternatives on the platform are noncustodial and let you remain in complete control of your funds by owning your keys.

ether.fi features several ETH staking and restaking options. One way to participate on the platform is to delegate your funds to a validator node and earn a share of their block rewards. This requires contributing 32 ETH (worth just over $112,000 as of late March 2024), the standard amount for an Ethereum validator. Staking more than 32 ETH is also possible, but must be in multiples of 32 — i.e., 64 ETH, 96 ETH and so on. The delegated staking service was the first staking product introduced by ether.fi. It was implemented on the platform in June 2023, during the project’s Phase One, the first of three key project development phases.

32 ETH is a substantial amount for many staking enthusiasts. These individuals can benefit from ether.fi’s other, more flexible staking options. In November 2023, during the project’s Phase Two, a liquid staking product was made available to the platform’s user community. Liquid staking on ether.fi allows you to stake as little as 0.001 ETH and earn staking rewards in a flexible way. When you stake ETH via the liquid staking mode, you’re issued eETH, the platform’s liquid staking token, a type of liquid staking derivative (

) token that’s used to accumulate rewards.

Phase Three of the project is included in ether.fi’s road map, but is currently in a speculative mode. ether.fi’s team considers the launch of additional services during this phase. Among these is node staking, which will allow validators and stakers to offer new infrastructural services on the network.

In addition to the main staking options above, the ether.fi platform provides two more staking alternatives – Solo Staker and 2 ETH B-NFT staking. Solo staking lets you set up an Ethereum validator node using your own hardware, but without the standard 32 ETH collateral requirement. The 2 ETH B-NFT option, to be launched in the future, will let you participate in staking with a 2 ETH investment by bonding a 

 NFT called B-NFT. B-NFTs are actually one of the two variations of non-fungible tokens (

) used in ether.fi staking (both of which will be discussed further in the upcoming section).

The ether.fi platform also allows you to restake your ETH funds via the EigenLayer restaking solution to earn additional retaking rewards. Stakers who use the platform’s liquid staking option are issued eETH LSD tokens, which can then be restaked on EigenLayer for additional rewards.

As well as the above staking options, ether.fi also features a couple of loyalty point initiatives. One of these is 

, a service that allows you to mint a fan NFT when you stake your ETH. Users can accumulate ether.fan loyalty points, depending upon the amounts and tenures of staking. These points can then be used to win a variety of prizes.

Finally, in addition to the ether.fan loyalty points, there’s a separate system of loyalty points on ether.fi that are earned via liquid staking activity.

Liquid staking is probably the most affordable and uncomplicated product for most users on the ether.fi platform. Using this option, you can contribute as much or as little as you prefer, with the minimum investment requirement just 0.01 ETH. When you lock your ETH, you’re provided with eETH LSD tokens at a ratio of 1:1. A synthetic asset that’s used to accrue your earnings, eETH essentially acts as your staking certificate.

An important advantage of ether.fi’s LSD token is the option to 

 on the EigenLayer platform for further rewards.

Operation Solo Staker is ether.fi’s special program aimed at improving Ethereum's decentralization. Currently, there are about 5,500 Ethereum validators on its network, with half of them located in the U.S., and more than 50% of those operating out of a single data center in Virginia, thus raising concerns that the blockchain 

. The Solo Staker initiative enables users who have the requisite hardware for running an Ethereum validator node to participate in the staking process without posting 32 ETH as collateral.

ether.fi uses distributed validator technology (

) to facilitate its Operation Solo Staker program. DVT allows you to split one validator key between multiple nodes. Using DVT, ether.fi provides its own resources — ETH collateral and software — that enables users with suitable hardware but no funds to run a validator node.

Users who have at least 32 ETH to spare can take advantage of the full staking mode via the ether.fi platform, whereby you select a preferred node operator to whom you delegate your stake. Node operators are the platform’s partners who make their infrastructure available to perform Ethereum block validation duties. On the ether.fi system, they flag their availability to take on a validator role by posting bids. You can choose any validator from those available, or simply assign your 32 ETH stake to the highest bidder.

Although you delegate your funds to a validator node, you remain in possession of the keys to your stake at all times.

Upon assigning your stake to a node operator, your validator node is launched, and you’re issued two NFTs representing your stake claim — T-NFT and B-NFT.

T-NFT represents your claim to 30 of the 32 ETH total stake, and B-NFT reserves your claim to the remaining 2 ETH. T-NFT is a fully transferable asset, while B-NFT is soulbound to you as a staker, and cannot be transferred or sold. Soulbound tokens are non-transferable crypto assets typically used as a form of blockchain-based ID to represent credentials, memberships and other identity-related attributes.

The B-NFT token is the controlling asset in the staking operation. A B-NFT holder can exit their validator node and stop staking at any time, while a T-NFT holder will need to send the exit request to their associated B-NFT holder. 

The ether.fi platform plans to introduce another staking option — 2 ETH for B-NFT. As noted above, B-NFTs are non-transferable, soulbound tokens representing a claim to a 2 ETH stake. Staking 2 ETH, rather than the full 32 ETH, will certainly be a more affordable alternative for many stakers. The exact mechanism of this staking mode will be unveiled by the project’s team in the future. 

In addition to the key staking services above, ether.fi’s product suite includes three more solutions — 

. The first two are already available to users as of late March 2024, while the Cash product is to be launched within the next 12 months.

 is actually a liquid restaking solution, rather than a staking product. It allows you to natively restake your ETH via the EigenLayer platform, a major partner of ether.fi. EigenLayer is a leading player in the Ethereum restaking market. It facilitates the restaking of ETH and LSD tokens on a variety of decentralized networks and apps linked to the Ethereum blockchain.

) strategy vault on ether.fi. Using the product, you can earn high yields with managed risk by contributing funds in one of the three crypto assets — ETH, eETH or weETH. weETH is the 

 version of the eETH LSD token that can be used to access staking and liquidity services on DeFi protocols beyond EigenLayer.

 product is a work in progress at the moment. It will allow you to spend and borrow funds using your ether.fi account balance, including on platforms beyond the blockchain environment. As part of the product offering, ether.fi plans to introduce a credit card that can be loaded with funds from your account on the platform.

ETHFI is the platform’s native cryptocurrency. Its primary function is to facilitate on-platform 

 processes. Holders of the token can take part in ether.fi’s governance via the platform’s decentralized autonomous organization (

). DAO members can vote on various matters, such as allocating funds from the ether.fi treasury, new token utilities, revenue distribution options, new strategy vaults and more.

ETHFI was launched on Mar 18, 2024 with a total and maximum token supply of 1 billion. The token’s supply allocation shares are illustrated in the chart below.

Of the 11% of the ETHFI supply reserved for user

, 6% will be distributed via the Airdrop Season 1 campaign, and the remaining 5% will be allocated via Airdrop Season 2. The Season 1 airdrop started upon ETHFI’s token generation event (TGE) on Mar 18, 2024, and will run for 90 days. Users eligible for the airdrop include a variety of early contributors to the platform, including the following:

Unclaimed ETHFI tokens from Airdrop Season 1 will be included in Airdrop Season 2 allocation.

You might consider investing in the newly launched ETHFI token based on the following factors:

1. ether.fi’s platform offers a rich variety of staking and restaking options, while letting the user control the keys to their investment. Very few other staking solutions can provide the same flexibility and choice of noncustodial staking options as ether.fi.

2. The ETHFI token has a supply limitation built into its tokenomics. This may act as a price support and/or growth factor for the token over the long-term perspective.

The ETHFI token is available on Bybit via Spot pair with USDT (

). Additionally, until Apr 1, 2024, new and existing users of Bybit’s trading platform can take part in an

 to qualify for a share of the 100,000 ETHFI prize pool. What’s more, new users can join an 

 with a 100,000 ETHFI prize pool till Mar 31, 2024.

With rising appreciation for noncustodial staking and restaking options, ether.fi is likely to become a key player in this niche of the crypto industry. Offering a number of flexible and affordable staking options, the platform has an excellent chance of establishing itself as a premier Ethereum staking and restaking provider.

With more products and services in the pipeline, such as Cash, 2 ETH staking (by bonding a B-NFT) and node staking, we can expect to hear more about the ether.fi project later in 2024 and beyond.

Advanced

Ether.Fi_(ETHFI).png

EtherFi (ETHFI): Controlling and Maximizing Your ETH Staking Rewards

Want the best returns when staking your coins and tokens? Give these best staking coins a shot to maximize your rate of passive income.

Interested in investing in cryptocurrencies? There are a myriad of factors that you should take into account. When you invest in coins that are based on a 

 blockchain network, you can engage in staking, which helps PoS networks operate more securely and efficiently. The only requirement for staking is that you keep coins in your cryptocurrency wallet over an extended period of time, which allows you to earn staking rewards. Staked coins are similar to interest-bearing savings accounts, since with both options you earn interest on your initial investment. Keen on giving this passive income strategy a go? Read on as we cover some of the best staking coins you can invest in if you want to earn passive income while taking advantage of the high yield.

 is a process that involves placing funds into a digital wallet and keeping them there to support validating transactions for PoS blockchains. By participating in transaction validation, participants earn extra cryptocurrency.

The main benefits associated with staking crypto include the following:

There are some notable differences between mining and staking. In general, while mining only occurs with 

 systems, you’re able to get a return on both PoW and PoS coins on staking platforms.

Both PoW and PoS as consensus mechanisms are able to confirm blockchain transactions without needing a third party, such as a bank or other financial institution. The main difference between the two mechanisms is in their energy consumption.

If you’d like to get started with the staking process, you first need to obtain PoS coins. Once you’ve selected the coins you want to use, you’ll decide how much of your top staking coins you’d like to stake. This process can be done on any major cryptocurrency exchange.

Keep in mind that it’s also possible to earn additional income through

. Although somewhat more complicated than staking, yield farming involves earning coins by lending your current crypto assets to various 

 platforms. With yield farming, you can contribute crypto assets for anywhere from a couple of days to several months. Higher lending amounts invariably lead to higher rewards.

Despite the benefits of crypto staking for earning passive income, there are several risks to be aware of. The primary ones are as follows:

The following is a comprehensive look at 19 of the best staking coins you can purchase in order to start obtaining staking rewards. The tokens’ symbols are listed after each crypto platform.

With big-name backers like Peter Thiel and Pantera Capital, investors can be confident in 

 being one of the next big exchange tokens. As one of the world’s largest decentralized autonomous organizations (DAOs), 

 seeks to nurture the DeFi space in achieving its vision of open finance and a decentralized, tokenized economy. BIT token holders can shape the future of BitDAO through voting on governance proposals, such as updates to core protocols and token swaps.

. After signing up on Bybit and completing Level 1 KYC, simply transfer BIT into your 

 account and begin the staking process. With a prize pool of 1,500,000 BIT tokens and an average annual return of 14.77%, you’ll certainly be hard pressed to find similar staking coins with comparable growth potential and staking rewards.

If you’re wary of your staked tokens and coins depreciating in value, try staking a 

 instead. While deciding which stablecoin is the best staking coin comes down to personal preference, we’re recommending 

 (USDT) thanks to its massive trading volume. This can do wonders for liquidity as the high daily USDT volume lets you effortlessly swap out USDT for more lucrative tokens.

Keen on giving USDT staking a go? Take advantage of 

 and enjoy average annual rates up to 3.5%. Thanks to the stability of USDT’s overall value, we certainly consider it as one of the best staking coins for beginners getting into staking and want to use a platform that offers instant withdrawals and little hassle.

, or Eth2, is the second-most popular cryptocurrency provider in the world behind Bitcoin, and is one of the best staking coins available. If you want to stake this particular crypto, you’ll need to start with at least 32 ETH. Ethereum previously used a PoW consensus algorithm. However, it has recently switched over to PoS, with more than $12 billion in ETH having been staked.

Before you start staking Ethereum 2.0, keep in mind that it’s in an early access phase, which means that the platform is still being tested before it officially launches. Until the 2.0 launch occurs, the coins you stake will remain in the network. It’s estimated that the Eth2 will launch in the first few months of 2022. With 

 flexible staking rates, you can expect to earn a steady 2.5% APY so why not earn some passive returns while you’re HODLing the coin with one of the best smart contract networks.

? You’re not alone. Just like Tether, USD Coin (USDC) is also a stablecoin that’s backed by fiat money and is commonly used for transferring of funds because of its stable value and high liquidity. Fortunately, unlike Tether, USDC is properly audited by Grant Thornton, LLP on a monthly basis. This allows for maximum transparency as the reports are posted online for all to view, thus proving its claim that it’s backed mostly by cash and cash equivalents.

Start staking USDC and earn attractive rates thanks to 

 flexible staking offerings. With average returns up to 8.88%, there’s no better choice when it comes to the best staking coins that offer a stable value and full transparency of how the stablecoin is pegged to the dollar. This passive investment strategy is made even better thanks to our flexible staking mechanism where you can freely unstake at any time should you need the capital.

 is among the best crypto staking coins because investing in their LUNA coins is easy. Terra facilitates the creation of a stablecoin backed by cryptocurrency, referred to as TerraUSD (UST). To invest in this highly recommended coin, you can exchange a single UST for one dollar’s equivalent of LUNA.

In the event that the UST price ever drops below one USD, it’s possible to swap affordable UST for $1 of LUNA, which allows you to obtain a profit and earn passive income. The annual staking reward for LUNA is around 12.10%, a substantial return which makes this one of the best cryptos to stake. When you’re ready to purchase LUNA and start staking, you can find it at crypto exchanges such as Binance.

 provides one of the best staking coins because it uses scalable, multi-chain technology created by Ethereum cofounder Gavin Wood.The minimum stake to start earning rewards is currently 40 DOT, or around $1,600 at the time of writing. (However, if you want to create a 

 with Polkadot, your contribution will have to be substantially larger at 350 DOT.)

Polkadot is among the best staking coins because it comes with an average annual return of 14%, which is great for earning passive income. You can stake DOT at exchanges including Binance, Kraken and Fearless Wallet. As for future prospects, DOT is among the best cryptos to stake because of its top 10 

, which will likely grow in the coming years.

 featuring optional delegation. Tezos uses the XTZ cryptocurrency, which is created by a “baking” process. If you become a “baker” with Tezos, you’ll receive substantial rewards when you stake your XTZ coins because you’ll be helping new blocks of transactions to be validated.

You can start staking with Tezos even if you only have one XTZ in your wallet. Your initial reward payments will be credited to you after a period of 35–40 days,, but subsequent payments are awarded every three days. Tezos rewards are largely consistent, which is why XTZ is considered to be one of the best crypto staking coins. Your average annual reward can be anywhere from 6.75–10.60%.

 is a unique staking coin that was created in an attempt to scale Ethereum. The purpose of Polygon is to ensure compatibility by connecting every Ethereum-based DApp (decentralized application). Polygon transactions are wholly secured by network validators. This is among the best staking coins to select from, because it’s able to validate up to 65,000 

 (TPS), which allows Ethereum networks to complete transactions efficiently.

Another reason Polygon is one of the best staking cryptos is that delegators are only required to stake a single coin before they can take part in the network, while staking itself requires at least two coins. You can begin staking by connecting your MetaMask wallet to your

. The expected annual staking reward for Polygon depends on how many coins you stake. The maximum APY for this coin is just over 14%.

 is the most popular crypto exchange platform in the world, and BNB is one of the world’s top staking coins, due to the manner in which it’s delegated. There’s currently no minimum stake for delegating the BNB coin to validators, and the “unstaking” process takes just seven days. 

The average annual return for the BNB coin is between 6–9%. However, it’s possible to earn returns that are as high as 30%. The rate of return can be highly volatile because it depends on transaction fees. You can stake this coin directly on the Binance platform, which offers a level of convenience that isn’t possible with most of the top staking coins on this list.

 is among the more unique staking coins on this list because of how it combines deflationary and inflationary mechanics. With this methodology, it’s possible for Hydra to burn nearly 100% of its transaction fees while maintaining inflationary block rewards. The end result is that users are protected against price degradation.

If you’re interested in staking with HYDRA, it’s important to understand that any user can become a node in the Hydra ecosystem. You need at least 10 HYDRA coins in your wallet if you want to start staking. Hydra has become one of the best PoS coins because all early stakers will receive a huge rate of return at 60%. This will eventually wean down to 20% over time. The staking rewards you receive are derived from transaction fees, and any new HYDRA coins are issued directly by its blockchain.

 is a powerful platform that provides effective scalability through validator nodes and instant transactions. ALGO is among the best staking coins because stakers only need to have a single ALGO coin to become validators. Having such a low staking minimum does have its pros and cons. While there are typically more validators than most other networks have, it’s also possible that some validators don’t participate as much as they should because of the minimum staking requirement.

With ALGO, you can begin the staking process using a Ledger wallet, Algorand wallet or Coinbase. Your total returns depend on the staking platform you decide to use. In general, you can expect annual returns that range from 5–10% of your total investment.

Interested in the best staking coin with a novelty? 

 is a fun and popular staking platform that provides users with the ability to stake any CAKE coins they accrue. When you stake your CAKE coins, you can choose to earn additional CAKE or other types of coins. At the moment, PancakeSwap is the most popular platform on

, which is just one reason why CAKE is considered to be among the best staking cryptos.

To stake CAKE, you’ll first need to connect your wallet to the PancakeSwap platform. Supported wallets include MetaMask, Trust Wallet, MathWallet, TokenPocket and Binance Chain Wallet. In comparison to platforms like Ethereum, transaction fees are considerably lower with Binance Smart Chain. Once you’ve obtained rewards on PancakeSwap, you can either claim them or reinvest them into the platform. The annual returns for the CAKE coin range from 31–42%, which makes this one of the best crypto staking coins on the market.

 is an efficient blockchain that was designed with scalability in mind. This scalability is achieved via Solana’s low fees and quick transactions. When it comes to crypto market caps, Solana ranks #7. SOL is one of the best staking coins because of the speed of transactions and the low cost for completing them. Most transactions are finished in a few seconds. While you can’t manage your own node when staking on the Solana network, there are more than 640 validators with whom you can stake your coins.

When you delegate your stake to validators on Solana, you’ll be able to participate in the rewards that these individuals receive. SOL coins have performed extremely well over the past few months, reaching an 

 of $210 per coin. When you stake your coins with Solana, you can expect to receive annual returns ranging from 7–11%. You can stake SOL with Ledger, MathWallet, Atomic Wallet and Exodus.

 is similar to platforms like Cosmos and Polkadot. However, AVAX is one of the best staking coins because its platform is able to scale to millions of different validators. You can start staking with the AVAX platform once you have at least 25 AVAX coins.

To become a validator, you’ll need to stake at least 2,000 coins. Once you stake your assets, you’ll need to do so for at least two weeks before you claim your rewards. AVAX has proven to be among the best cryptos to stake, with an annual return on investment from 8–14%. You can stake your AVAX coins with a number of different wallets, the primary ones being Ledger, MetaMask and Avalanche Wallet.

 Finance is a popular platform that provides users with the ability to stake the BANANA coins they earn. Thanks to its meme status that capitalizes on the bullish retail investor movement, BANANA has become one of the best PoS coins. Once you’ve purchased BANANA coins, you can stake them along with other digital assets in various pools.

After you’ve staked your BANANA holdings, you can choose to earn more of the BANANA coin or other cryptocurrencies. Some of the pools you can stake your coins with include BFTl, Banana, JDI and Ontology. All you need to do to begin staking your tokens is to click the ”Add” button. Over time, you’ll earn staking rewards that can be harvested after the mandatory timelock. With an average annual return of 75% on ApeSwap that will fall over time, there’s no better time to get to yield farming than the present.

 is a great platform that offers both staking and yielding. However, many investors choose to stake their SUSHI coins because of the high annual returns. You can obtain SUSHI coins on popular exchanges like Binance, Huobi and OKEx. Once you decide to stake SUSHI coins, you can do so with wallets such as MetaMask and Atomic Wallet.

If you decide to stake SUSHI coins, the returns you generate can be used for voting rights, or as a token that allows you to interact with other platforms. The returns generated from SushiSwap staking investments are largely consistent, typically ranging from 7–10%.

 is a highly popular NFT and cryptocurrency marketplace that provides users with the opportunity to stake their coins for voting and governance rights as well as staking rewards. XNL is considered to be one of the best staking coins because it has a very high annual return of 67%.

Keep in mind, however, that this high APR isn’t unlimited. The soft cap for a single user is set at 50 coins while the hard cap is 100,000 coins.Users can claim rewards every three days. Chronicle supports the most popular wallets, primarily MetaMask.

 is a powerful PoS network that’s commonly compared to Ethereum. The main advantage of using the Cardano network is that it can process several hundred transactions per second. Cardano earned its spot on this list as one of the best staking coins because users can pull out any of their staked assets whenever they like. If you’re new to the staking process, this is a highly accessible platform.

Of particular note with Cardano is that staking rewards become less valuable over time if too many individuals place their assets in a single pool. As such, diversification is essential toward maximizing your returns. Cardano has two official wallets, 

. The average annual return for ADA is 5–9%.

 is a decentralized open-source cloud network that’s known for being low-cost, quick and efficient. 

 is the primary wallet supported by the Akash platform. Staking with Akash is simple and straightforward. Once you’ve purchased some AKT on BitMart or a similar exchange, all you need to do is choose the validator you’d like to stake your assets with.

You can then decide the amount of AKT you want to delegate. The AKT APY is currently set at 34.20%, which is among the highest around. However, the staking rewards don’t automatically compound. As such, it’s highly recommended that you manually withdraw your rewards and stake more coins on a regular basis if you want to take advantage of the high APY.

Staking your coins on a PoS blockchain network is a great way to earn passive income and generate high returns. These investments come with very little risk, and can pay dividends if you withdraw your rewards at the right time. With this guide in hand, you should have everything you need to begin the staking process.

Beginner

Best Staking Coins With Most Potential for Maximum Passive Income

20 Best Staking Coins for Maximum Passive Income

What is crypto staking? And how can users learn how to stake coins to earn crypto?

? That’s right! “What is crypto staking?” you may ask. Crypto staking has become increasingly popular among investors as a way to grow their crypto portfolios without having to constantly trade or monitor the market. In this blog post, we will explore the world of crypto staking, discuss various staking methods, and help you choose the right strategy to start earning passive income today.

Crypto staking, or the process of locking up digital assets to support a 

 network, is a mechanism used primarily in proof-of-stake (PoS) consensus mechanisms. By staking their assets, validators help maintain the security and integrity of the network, while earning staking rewards in return.

Before diving in, investors should familiarize themselves with the staking process and its implications.

 (PoW) are two different consensus mechanisms used in blockchain networks. These consensus mechanism types, PoW being the older of the two, rely on miners who use their computing power to solve complex equations and validate transactions. However, this process consumes a massive amount of energy, sparking concerns about its environmental impact. In contrast, staking work in PoS systems offers a more energy-efficient alternative for achieving consensus.

Enter PoS, a more energy-efficient alternative that enables staking. In PoS blockchains, network participants stake predetermined amounts of cryptocurrency to validate new transactions and add new blocks to the blockchain, earning staking rewards in the process.

In PoS blockchains, validators stake their assets and validate transactions, thereby ensuring the network’s security and integrity. Validators are typically chosen through a random selection process based on factors such as the number of coins staked or a combination of other factors.

Once chosen, validators are responsible for validating transactions in new blocks and adding them to the blockchain.

There are various staking methods available for crypto investors, including independent staking, staking pools, and staking on exchanges. Each method has its own benefits and drawbacks, depending on factors such as your technical expertise, available resources, and risk tolerance.

Below is a detailed exploration of these staking methods.

Independent staking involves becoming a validator on a PoS blockchain, which requires a minimum amount of cryptocurrency and some technical knowledge. To become a validator, you must lock up a predetermined amount of the network’s native cryptocurrency (such as 32 ETH for 

) and participate in the consensus process, which involves signing blocks and attesting to the signing of blocks.

This approach directly contributes to the network’s security and rewards the stakers for their efforts, including crypto rewards and staking reward.

Staking pools offer a more accessible option for those with smaller holdings. For instance, many Ethereum 

), have been created as user-friendly and inexpensive alternatives due to the complexities and high amount required to stake ETH. In a staking pool, multiple token holders combine their tokens to amplify their staking power and chances of being selected to validate blocks and receive rewards. By joining a staking pool, participants share the costs and rewards of staking their tokens.

To join a staking pool, you’ll need to research available options for your chosen cryptocurrency, select a pool, and stake your crypto to it via your wallet. Be sure to evaluate factors such as the pool operator’s history, safety measures, and fees or commissions when selecting a staking pool.

Some cryptocurrency exchanges offer staking services, allowing you to stake your assets directly on the platform for a commission. However, staking on exchanges can be more costly than other staking methods, as exchanges generally charge fees for staking services.

Moreover, keeping your crypto online on the platform exposes you to potential losses in the event of a crypto exchange failure, which is why many users opt for more secure alternatives like using a crypto wallet or choosing crypto exchanges with better security measures. Bybit, for example, offers you a safe platform to stake supported cryptocurrencies with 

 thanks to its robust security protocols such as a triple-layer asset protection in which all user funds are stored in cold wallets.

Popular cryptocurrencies for staking include Ether (ETH), 

 (DOT), among others that use PoS consensus mechanisms. These cryptocurrencies offer attractive staking yields that vary depending on the specific asset and market conditions. For instance, staking yields for ADA currently range from 3.1% to 4.5%, while Polkadot (DOT) can offer annual yields ranging from 8% to 14.29%.

Bear in mind that factors like network demand and the staking method used can cause staking rewards and yields to fluctuate over time. Be sure to stay informed about the latest staking opportunities and market developments to maximize your returns.

How to Start Staking: A Step-by-Step Guide

For those ready to embark on the journey of crypto staking, follow these initiation steps:

Now that you have your chosen cryptocurrency and a compatible wallet, you’ll need to decide on a staking method. As discussed earlier, you can choose between independent staking, joining a staking pool, or staking on an exchange. Each method has its own benefits and drawbacks, so consider your technical expertise, available resources, and risk tolerance when making your decision.

Once you’ve selected a staking method, follow the specific steps for that method to start staking your assets and earning passive income. For example, if you choose to stake independently, you’ll need to set up a validator node and lock up the required amount of cryptocurrency. If you opt for a staking pool, you’ll need to research available options, select a pool, and stake your crypto via your wallet. And if you choose to stake on an exchange, simply deposit your assets to the platform and enroll in their staking program.

The variation in staking returns can depend on the type of cryptocurrency, the staking method applied, and the prevailing market conditions. Some staking opportunities offer 

 (APY) of up to 20%, while others may provide lower returns. To optimize your staking rewards, consider factors such as the pool’s commission fees, the reliability of the validator, and the overall demand for the blockchain network.

Potential risks, such as market volatility and liquidity issues, should also be considered when staking. By staying informed and carefully assessing your staking opportunities, you can make informed decisions and maximize your passive income.

While crypto staking can be an attractive source of passive income, it comes with its own set of risks. Market volatility is a significant concern, as the value of staked assets can fluctuate drastically, potentially leading to financial losses. Additionally, liquidity issues can occur when stakers are unable to convert their staked assets into cash quickly, due to a lack of buyers or sellers in the market or an absence of liquidity on the staking platform.

Another risk associated with crypto staking is the lock-up period, during which staked assets are inaccessible and cannot be sold or traded. Validators who act improperly may also face penalties and forfeiture of their staked collateral. Understanding these risks is crucial before deciding to participate in crypto staking.

Alternatives to Staking for Passive Income

If you’re interested in earning passive income but not quite ready to dive into crypto staking, there are other alternatives to consider. Some options include:

These alternatives can provide stable passive income streams.

For those still interested in the world of cryptocurrencies, lending programs and decentralized finance (

) applications offer additional passive income opportunities. Reputable crypto lending programs like 

 allow users to lend their crypto assets and earn interest income, while DeFi applications provide various yield-generating opportunities through platforms like 

Awareness of the tax implications associated with crypto staking is vital. In general, staking rewards are subject to taxation as income at their fair market value, which also establishes a cost basis for future capital gains calculations. Tax treatment of staking rewards can vary depending on the country; for example, in the US, staking rewards are treated as ordinary income and taxed based on the fair market value at the time of receipt, while in the UK, they are classified as miscellaneous income and subject to income tax.

Always consult a tax professional for guidance on reporting your staking rewards and understanding your specific tax obligations. Accurate record-keeping of your staking activities is crucial to ensure you meet your tax obligations and avoid potential penalties. This includes:

By maintaining detailed records, you will be better prepared to report your staking rewards accurately and fulfill your tax obligations.

In conclusion, crypto staking offers a compelling opportunity for investors to earn passive income while supporting the security and integrity of PoS blockchain networks. By understanding the different staking methods, popular cryptocurrencies for staking, and potential risks and rewards, you can make informed decisions and grow your crypto portfolio with confidence. Whether you choose independent staking, joining a staking pool, or staking on an exchange, crypto staking can be a rewarding and fulfilling way to participate in the world of blockchain technology. 

Staking your crypto can be a great way to earn passive income, as some cryptocurrencies offer high interest rates. However, it's not a riskless process, and you need to make sure you understand how it works before getting started.

Staking crypto carries risks including protocol penalties, market risk, liquidity risk, lockup periods and more. Additionally, the rewards gained through staking can be offset if the price of crypto drops significantly. It is important to bear in mind these risks when considering staking your crypto assets.

Is staking better than holding in crypto?

Staking offers many benefits compared to simply holding crypto, such as higher returns on investment, compounding interest and the ability to earn more than 10% or 20% per year. Additionally, it is also a way to contribute to the security and efficiency of the blockchain projects you support. Thus, staking may be a better choice than holding in crypto.

Crypto staking is a process in which holders commit their digital assets to help verify transactions on the blockchain, earning rewards in return. Participants don't usually personally validate transactions - instead, computers in the network do - and it can be easily done through programs on major exchanges.

What is the minimum amount of ETH required to become a validator on Ethereum?

To become a validator on Ethereum, the minimum amount of ETH required is 32 ETH.

Crypto-Staking.jpg

What Is Crypto Staking? Your Guide to Earn Passive Income

Are you an NFT enthusiast? If so, there's plenty to explore on LooksRare, a decentralized NFT marketplace that offers rewards on your transactions.

Back in January 2022, LooksRare stole headlines for being the next worthy competitor to 

, an NFT marketplace that’s been dominating the NFT space since early 2021. LooksRare was promoted as a community-first NFT marketplace that places emphasis on rewarding traders and creators, attracting an influx of users to its platform. This resulted in the daily volume of LooksRare 

However, LooksRare’s platform was soon marred by rumors that it was being used as a platform for 

 on LooksRare comes from wash trading. This put a dent in LooksRare’s popularity and contributed to a decline in price of the LOOKS token from a high of $7.10 to a low of $1.

Although LooksRare may not have taken over OpenSea yet, its recently launched V2 may propel it back into the top five NFT marketplaces. In this article, we’ll explore LooksRare, and how V2 compares to its previous version and to OpenSea.

Two unidentified founders — going by the pseudonyms “Zodd” and “Guts” — launched the platform in January 2022, with a team of 11 members tending to the project’s development. The aim of LooksRare is to dethrone OpenSea from its number one spot in the NFT market.

LOOKS is the native token that powers the LooksRare NFT marketplace. It has a

 and stands at a price point of $0.084595 as of May 31, 2023.

 blockchain and allows participants to trade Ethereum NFTs. The platform used to charge a 2% sales fee, but with the launch of LooksRare V2, it now charges a 0.5% fixed fee on all NFT (excluding private) sales.

All WETH fees accumulated from sales are combined at the end of every 6,500-ETH block period (approximately 24 hours), and distributed to LOOKS token stakers per block during the next 6,500-block span.

Users can claim their WETH rewards as often as they want, but they must pay 

 on each withdrawal. If they forget to claim their WETH, or prefer to wait until gas fees are lower, their WETH will continue to accumulate as long as their LOOKS tokens remain 

As a community-first project, 100% of the revenue generated by LooksRare is distributed to stakers of LOOKS tokens. The team doesn’t gain revenue directly from the project, and is rewarded only if the project does well.

The following are the key features of the LooksRare platform.

LooksRare puts its users first by distributing rewards, a feature that OpenSea doesn’t offer. Below is a chart showing the jump in trading volume from Jan 10–16, 2022.

From staking to trading, LooksRare’s community has developed a reward system to attract users to its platform. 

Both the buyer and the seller of an NFT earn incentives for their trading volume (other than for private sales), known as 

. Trading Rewards are computed daily, and are distributed two hours after the end of the day. They’re calculated according to each user’s trade volume on LooksRare, as a proportion of the total platform transaction volume (excluding private sales).

LooksRare users can stake their LOOKS tokens on the platform and be rewarded with WETH and additional LOOKS tokens simultaneously, with rewards reaching up to 39.31% APY.

Altcoins

Blockchain

Crypto

DeFi

GameFi

Indicators

Investing

Metaverse

Memes

Options

Stablecoin

Staking

Strategies

Trading

Web 3.0

Web3 Experts

Staking

EtherFi (ETHFI): Controlling and Maximizing Your ETH Staking Rewards

DeFi

20 Best Staking Coins for Maximum Passive Income

Crypto

What Is Crypto Staking? Your Guide to Earn Passive Income

Crypto

LooksRare (LOOKS): A Community-First NFT Marketplace

Altcoins

Is Anchor Protocol the Best Defi Staking Protocol for Safe Yields?

Investing

Yield Farming vs. Staking: Which Passive Income Strategy Is Better?

Investing