Staking rewards

Now this is buy and hold.© Peter Hansen—iStock/Getty ImagesYou may have heard that cryptocurrency has its own unique equivalent to fixed-income assets. Instead of earning interest in the form of dollars, you earn a percentage of a batch of crypto coins you set aside and “stake.” This is what crypto staking is all about. But what’s involved, how does it work, and what are the pros and cons of locking up your coins for “yield”?Key PointsStaking is a way long-term crypto investors (“HODLers”) earn passive income in the crypto world.Staking cryptocurrency means agreeing not to trade or sell your tokens.Crypto staking creates opportunities to earn crypto rewards and diversify your crypto portfolio—but it’s inherently risky.What is cryptocurrency staking?Crypto staking is the practice of locking your digital tokens to a blockchain network in order to earn rewards—usually a percentage of the tokens staked. Staking cryptocurrency is also how token holders earn the right to participate in proof-of-stake blockchains.Here’s a simple example: Suppose a blockchain network offers a 5% reward for a staking period of, say, a month. You decide to lock up and stake 100 tokens in the network. After a month, you’re able to access your staked tokens and you receive 5 additional tokens as your reward.How many ways can crypto investors stake their tokens?Cryptocurrency staking can take many forms, but it generally falls into two categories: active and passive.Active crypto staking means locking your tokens to a network for the purpose of actively participating in the network. Active participants may validate transactions and create new blocks to earn token rewards.Passive crypto staking involves simply locking your tokens to a blockchain network to help keep it secure and operating efficiently. Passively staking crypto is not time-consuming, but it generally yields lower token rewards than active participation.Cryptocurrency staking is a relatively new innovation, but many specialized types of crypto staking already exist, including:Delegated staking. This form of staking enables crypto stakers to delegate their staking power to a validator node operated by someone else. The rewards earned are shared among validators and delegators. (Note: If these terms are confusing to you, watch the blockchain video below).Pool staking. A group of coin holders may combine their resources to compete more effectively for staking rewards. Any rewards earned are shared proportionally among the members of the pool.Exchange staking. Some cryptocurrency exchanges offer staking services, enabling users to stake their holdings directly on an exchange. The exchange handles the staking process on a blockchain network and distributes staking rewards to participants.Liquid staking. Users receive representative tokens in exchange for staking their crypto. The representative tokens can be traded or used, providing liquidity to the crypto staker.Cryptocurrency staking can also be custodial or noncustodial. Custodial staking requires crypto holders to transfer their tokens to a staking platform, while noncustodial staking lets you keep your staked coins in your own digital wallet.The distributed ledger technology underpinning crypto assets.Encyclopædia Britannica, Inc.How does crypto staking work?Suppose you want to add cryptocurrency to your portfolio in order to generate

Yield from staking. Here are the steps to make that happen:Choose a cryptocurrency. Not all cryptocurrencies support staking, so your first step is to choose a relevant token. Cryptocurrencies that use proof of stake or a similar consensus mechanism generally support staking.Acquire the cryptocurrency. Your next step is to acquire your chosen cryptocurrency. You can use one of many crypto exchanges to complete the purchase.Select a staking platform. Choosing a staking platform is the most important part of this process. Your selected platform determines the type of staking and whether the token storage is custodial or noncustodial.Stake your cryptocurrency. With the right tokens in your digital wallet and a staking platform selected, you’re ready to follow the protocols of the platform to stake your crypto. Staking a token locks it to a blockchain network for a predefined time period.Earn rewards. Your staked cryptocurrency may begin to generate rewards in the form of more crypto. Note that staking rewards aren’t necessarily guaranteed to be delivered on time, or in some cases, delivered at all. The reasons may include:Network congestion can sometimes slow the process when it comes to generating your rewards.If you delegate staking to a validator who either makes a mistake or behaves maliciously, they may be subject to losing some or all of the tokens they staked. This is called a slashing penalty.Also, if blockchain protocol changes (i.e. “forks”) take place while your staked tokens are locked up, it may affect the value of your rewards. Pros of crypto stakingThe idea of earning interest on your digital assets can be enticing. Here’s what to love about staking your digital tokens:The opportunity to earn passive income on crypto assets you plan to hold for the long term (“HODL,” in crypto-speak).The potential for rewards to appreciate in price.Staking improves network security and efficiency.It may enable your active participation in the blockchain network.Cons of crypto stakingCrypto staking comes with risks. There are several drawbacks to cryptocurrency staking:Your assets have limited or no liquidity during the staking lockup period.Staking rewards (as well as staked tokens) can lose value when prices are volatile.Your cryptocurrency can be slashed (partially confiscated) for violating network protocols.When many users receive staking rewards, there is risk of cryptocurrency inflation.An attack on a blockchain network can impact your staked crypto.Cryptocurrency staking is not well regulated.Successful staking may require advanced technical knowledge.Your increased involvement with a staking platform or blockchain network is what makes cryptocurrency staking risky—more risky than simply holding your tokens in a secure digital wallet.Beginner mistakes when staking cryptoYou’re more likely to succeed with cryptocurrency staking if you learn from the mistakes of others. Here are some common errors beginners make:Conducting insufficient research. Some crypto holders are enticed by attractive yields and begin staking their digital assets without learning how staking works or understanding the associated risks. Ignoring price volatility. New crypto investors might not fully realize that the value of their staked tokens can fall while they’re locked up.Disregarding lockup periods. A novice crypto staker may not

Mean in crypto? Crypto staking involves locking up your cryptocurrency assets for an extended period of time to unlock rewards or earn interest on your coins. Crypto staking rewards come in the form of more coins, making staking one of the simplest ways to earn crypto passive income. What is the best crypto staking platform? We recommend Binance or Coinbase as two globally popular and secure crypto exchanges that offer staking services. Any risks in crypto staking? There can be risk attached to staking coins that are relatively new to the cryptocurrency markets and may end up as failed projects - earning crypto staking rewards on a token that crashes and doesn't recover won't be profitable long term. This is unlikely to happen with crypto majors such as ETH and ADA, although the price can vary wildly during a locked staking period. Is crypto passive income a safe investment? The cryptocurrency markets have outperformed all other financial assets over the last decade, including Gold, and bank savings accounts. The crypto marketcap still has room to grow, currently at around a quarter of the size of Gold. Staking coins in order to earn more of that coin is safer than attempting to daytrade the volatile swings in the market.

Ledger Nano S and X. Staking is supported on the Ledger wallet and users are in total control of their funds. Ledger supports the staking of up to seven coins including Tron (TRX) and ALGO.TrezorThis is the oldest wallet and it supports the staking of assets like Tezos (XTZ) through third-party software.CoolWalletThis is a Bluetooth-powered wallet and allows users to stake stablecoin USDT via its in-app X-Savings feature.Staking on ExchangesMany leading crypto exchanges make things simple for their customers and offer automatic staking rewards on their platforms. There’s no need to set up your a node or purchase any special equipment.Rewards are automatically paid out to users monthly, with the platform reserving a small percentage of yields as the fee for operational costs and other incurred costs. Users should note that staking is not available in all countries via an exchange.How to Stake Crypto – Step-by-StepStep 1 – Create an AccountThe first step to staking crypto is to find a preferred crypto exchange. There are different platforms and each has its own strengths and weaknesses, unique features, and fees – find one that you’re comfortable with holding your funds.Most are available as free mobile apps on iOS or Android, or via their websites. Create an account with basic information and then verify that account. This will involve confirming an email address and phone number, and providing a photo ID such as a passport or driver’s license. Some platforms also require proof of address and may ask customers to complete a questionnaire.As mentioned above, staking services are not available on major crypto exchanges in some countries.Step 2 – Buy and Stake CoinsOnce an account has been created, search for the particular cryptocurrency you wish to stake. Find it via the search bar available on most platforms and then purchase the token.Different exchanges have different minimum purchase amounts and fees, but most will allow users to buy major cryptos such as ETH, ADA, and SOL, with fiat currency. Follow the instructions on-screen to complete the transaction.Next, navigate to the staking section of the app – on Binance, for example, this is called ‘Earn’. Find the token you wish to stake and the select the relevant product.Binance, for example, allows users to stake tokens for a set period of 30, 60, 90, or 120 days, with the rewards percentage increasing the longer a token is locked. Select the locking period and the amount to stake.Note that you can redeem tokens early if you decide to sell a token, but all potential rewards will be lost.Step 4 – Receive Crypto Staking RewardsCrypto exchanges will automatically distribute staking rewards, although the timescale for rewards varies. The rewards will not automatically be added to the staking

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Harry Hippo is shaking things up in the crypto gaming world, and people are taking notice. The buzz really kicked off when the project hit $1.4 million in presale funding – that’s when they decided to crank up their staking rewards from 100% to an eye-catching 601% APY. Right now, anyone can grab $HIPO tokens at $0.005725 in the presale. And what sets this project apart from the crowd isn’t just its token alone. The team has built something that brings together cutting-edge AI gameplay, collectible NFTs, and a pretty clever play-to-earn setup in their Harry Hungry Hippo game. Understanding Harry Hippo’s Staking MechanismThe staking system behind Harry Hippo relies on smart contract technology to ensure transparent and reliable reward distribution. From the total supply of 3 billion tokens, 10% is specifically reserved for staking rewards. This dedicated allocation creates a sustainable pool that supports the platform’s generous APY program.What makes this system particularly interesting is its gradual distribution approach. Instead of dumping all the rewards in one go, the system pays out bit by bit over the year, kind of like getting a regular paycheck. This method helps maintain token value stability while providing consistent returns to those who stake their holdings.The Dual-Earning PotentialHarry Hippo creates multiple paths for token holders to grow their assets. Beyond the impressive staking rewards, users can earn additional tokens through skilled gameplay in the Harry Hungry Hipo game. Players can jump into matches to earn rewards while their staked tokens work in the background.The gaming component adds another layer of earning potential through skill-based rewards. Players who demonstrate strategic thinking and gaming prowess can earn extra tokens through victories in Harry Hungry Hipo game. The AI-powered gaming system ensures that matches remain challenging and rewards are based on genuine skill rather than chance.This combination of passive and active earning opportunities sets the platform apart from traditional staking programs. It’s a fresh take on gaming rewards that shows the team is serious about keeping both players and token holders happy for

How to see my staking reward payments & how my rewards are paid? You can check your Solana staking rewards in the Phantom app.Step 1. Click on the "Solana" token on the assets tab, and then select "Your Stake"Step 2. Click on your Stake Account.Step 3. Check the "Last Reward" section.The rewards can not be withdrawn unless you unstake your SOL. Instead, the rewards are added to your stake (compounding), and you earn more SOL.How to check your SOL Staking Rewards?To see all the rewards, you can do this at solanabeach.ioStep 1. Paste your Wallet Address into the Search areaStep 2. Click on "Stakes"Step 3. Click on an accountStep 4. Click on "Stake Rewards"a. The "Epoch" number shows the reward amount and date.b. You can click "Download CSV" and receive all the info as well, in spreadsheet form. Was this article helpful? 81 out of 98 found this helpful Can't find what you're looking for? Start a chatOpen a Ticket -->