How To Start Staking Cryptocurrency

Cryptocurrency Staking – How Can You Earn Passive Income?

This article was originally published on www.myliberla.com in 2023 and updated in 2025 to reflect the latest developments in cryptocurrency staking.

Cryptocurrency staking is a method of earning passive income by holding digital assets in specialized wallets. It is a relatively new concept, but it has quickly gained traction as an attractive form of investment. Cryptocurrency staking involves locking funds in a cryptocurrency wallet, and using the funds to help secure a blockchain network.

By doing so, users are rewarded with newly-minted tokens, typically at a rate of a few percent per year. This is similar to a dividend payment, but instead of receiving money, users receive new tokens. The process of staking cryptocurrency can vary depending on the blockchain network and the cryptocurrency being staked.

Generally, users will need to download the appropriate wallet and store the cryptocurrency there. Then, when the network is secured, users can receive rewards for their efforts. One of the key advantages of cryptocurrency staking is the ability to earn passive income. This means that users can gain a steady stream of rewards without actively trading or managing their investments.

It is also a relatively low-risk form of investment, as users are not exposed to the volatility of the cryptocurrency market. In addition to earning passive income, cryptocurrency staking can also help users increase their holdings and diversify their portfolio.

As users receive rewards in the form of new tokens, they can use those tokens to purchase other cryptocurrencies. This can help diversify their investments and potentially increase their returns. Finally, staking can also provide users with some added security. By locking funds in a cryptocurrency wallet, users can protect their investments from hackers and other malicious actors. This can help users avoid costly losses and protect their investments in the long-term.

All in all, cryptocurrency staking is an attractive option for investors who are looking to increase their holdings and earn passive income. With the right wallet and the right cryptocurrency staking, users can potentially enjoy a steady stream of rewards without actively managing their investments.

What Are the Best Strategies for Making Money with Cryptocurrencies?

Cryptocurrencies have become increasingly popular over the past decade, offering individuals the opportunity to make money from the fluctuating digital asset prices. While investing in crypto assets can be a lucrative venture, it is important to understand the various strategies available to ensure maximum returns.

Below are five of the best strategies for making money with cryptocurrencies.
1. Buy and Hold: The Buy and Hold strategy involves buying a crypto asset and holding it for a long period of time. This approach allows investors to take advantage of the asset’s price appreciation, while also mitigating the risk of short-term volatility.
2. Day Trading: Day trading involves buying and selling crypto assets within a short time frame, usually within the same day. This approach is suitable for experienced traders who are able to utilise technical analysis to identify profitable opportunities.
3. Margin Trading: Margin trading involves borrowing funds from a broker to increase the size of a position and potentially increase profits. This strategy can be risky, as the potential losses are magnified when the asset’s price moves against the trader’s position.
4. Staking: Staking is a process in which holders of certain crypto assets can earn a return by holding the digital asset and locking it away for a predetermined period of time. Staking cryptocurrency is often used as a way to earn a passive income with crypto assets.
5. Mining: Mining is the process of creating new crypto assets by solving difficult mathematical puzzles. This strategy requires a substantial amount of computational power, and miners are rewarded with newly minted tokens for their efforts. By understanding the various strategies available, investors can maximise their returns and minimise their risks when trading cryptocurrencies.

How To Use Crypto To Make Money In The Real World – Real-World Examples and Strategies

Cryptocurrency is revolutionizing the way people view and interact with money. As the world becomes increasingly digital, it is no surprise that the digital currency of the future has become so popular. Cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.

It is not backed by any physical commodity or fiat currency and is instead powered by a distributed ledger system known as a blockchain. Cryptocurrency offers a unique opportunity to make money in the real world. With the right strategies, investors can make a substantial return by trading and investing in cryptocurrency. Here are some real-world examples of how cryptocurrency can be used to make money in the real world.

1. Trading Cryptocurrency: Trading cryptocurrency is a popular way to make money. Traders can use platforms like Coinbase and Binance to buy and sell cryptocurrencies. They can also use margin trading to borrow money from the exchange to increase their buying power. By correctly timing their trades and anticipating price movements, traders can generate profits from the difference between the buy and sell prices.
2. Staking: Staking cryptocurrency is a way to earn a passive income in the form of rewards for holding certain cryptocurrencies. To stake, users must lock up their coins in a platform or a wallet for a certain period of time. During this period, they will receive rewards in the form of additional coins. The rewards are paid out in proportion to the amount of coins held.
3. Investing in Blockchain Projects: Investing in blockchain projects is another way to make money in the real world. Projects such as Initial Coin Offerings (ICOs) and Security Token Offerings (STOs) offer investors the chance to invest in a project and receive returns in the form of tokens or coins. Investors can also participate in Initial Exchange Offerings (IEOs) and other token sales to acquire tokens at a discounted price.
4. Mining Cryptocurrency: Mining is a process of verifying transactions on the blockchain and earning rewards in the form of cryptocurrency. People who have powerful computers can participate in mining activities and receive rewards for their efforts. It is important to note that mining is an energy-intensive process and requires substantial computing power and electricity. By using the strategies outlined above, investors can use cryptocurrency to make money in the real world. The key to success is to be informed, research the markets, and understand the risks associated with each strategy. With the right approach, cryptocurrency is a great way to make money in the real world.

Staking Cryptocurrency in 2023: The Year of Accessibility

In 2023, staking cryptocurrency became widely accessible to mainstream investors. More platforms than ever—such as Coinbase, Kraken, and Binance—offered user-friendly staking options with lower minimum requirements. For many retail investors, 2023 marked their first opportunity to earn passive income by simply holding supported tokens.

Proof-of-Stake (PoS) networks like Ethereum, Cardano, and Polkadot experienced spikes in staked assets as people looked for safer alternatives to the volatile trading markets. Security and simplicity were the key selling points in 2023. Users didn’t need technical knowledge or high-powered hardware. Instead, they could stake with a few taps on a smartphone app and monitor their rewards in real time.

However, returns were modest compared to early adopters in previous years. Most major assets offered APYs ranging from 4% to 7%, which still outpaced traditional bank savings accounts but highlighted the maturing nature of the staking space.

Staking Cryptocurrency in 2024: Regulation Meets Innovation

By 2024, governments around the world had begun to weigh in on the legitimacy and structure of crypto staking. Regulatory clarity in countries like the U.S., Germany, and Singapore allowed staking platforms to operate more transparently and securely. This brought in larger institutional investors who had previously been hesitant.

With this influx of capital, staking protocols began to introduce more sophisticated reward mechanisms—such as tiered incentives, lock-up bonuses, and risk-adjusted APYs based on market volatility. Innovations like liquid staking (popularized by Lido and Rocket Pool) gained traction, allowing users to stake tokens while maintaining liquidity via derivative assets.

The year 2024 also saw the rise of staking aggregators, tools that helped users automatically move assets between protocols to optimize yields. While the barriers to entry were still low, successful stakers in 2024 had to be more strategic, balancing risk, reward, and regulatory exposure.

Staking Cryptocurrency in 2025: Automation and AI Take the Lead

In 2025, cryptocurrency staking evolved into a fully automated and intelligent financial strategy. AI-powered platforms now analyze thousands of staking opportunities in real time, automatically reallocating user assets to optimize returns with minimal risk.

These platforms integrated predictive models that account for network behavior, token inflation rates, validator reliability, and macroeconomic factors. For users, staking became even more hands-off—less an investment strategy and more a standard financial feature, much like earning interest on a bank deposit. Meanwhile, newer Proof-of-Stake networks, especially those focused on sustainability and interoperability, surged in popularity.

The introduction of staking-as-a-service platforms for enterprise clients allowed businesses to earn from their idle crypto holdings, while offering white-labeled solutions to their users. The 2025 staking environment was defined by speed, intelligence, and seamless integration with broader financial ecosystems.

The Evolution of Staking: Comparing 2023, 2024, and 2025

Over the span of just three years, the cryptocurrency staking landscape transformed dramatically. In 2023, staking was largely about access—giving retail users the tools and interfaces to get started. Most stakers focused on a few well-known networks and accepted relatively stable returns for low risk. In 2024, the conversation shifted toward regulation and optimization.

New laws helped legitimize staking, while platforms raced to offer competitive rewards and features to attract users. By 2025, the paradigm had shifted entirely. Automation, artificial intelligence, and enterprise-grade staking solutions redefined what it meant to earn passive income through crypto.

The staker in 2023 needed curiosity; the one in 2024 needed caution and strategy; and by 2025, success depended on embracing intelligent tools and adaptive financial models. This rapid evolution illustrates how quickly the crypto economy matures—and how critical it is for investors to stay informed.

FAQ – Staking Cryptocurrency for Beginners

1. What exactly is cryptocurrency staking?

Staking is the process of locking up your cryptocurrency in a blockchain network to help validate transactions. In return, you earn rewards—typically in the form of additional tokens—similar to earning interest on a savings account.

2. How do I start staking cryptocurrency?

To begin staking, you’ll need to:

• Choose a cryptocurrency that supports staking (like Ethereum, Solana, or Cardano).
• Download a compatible wallet or sign up with an exchange that offers staking.
• Deposit your tokens and follow the platform’s instructions to begin staking.

3. Is staking risky?

Staking is generally considered less risky than trading, but it’s not risk-free. Factors like price volatility, slashing penalties (on some blockchains), or platform security issues can affect your staked assets.

4. How much can I earn from staking?

Returns vary depending on the cryptocurrency and platform. On average, staking rewards range from 4% to 15% annually, though newer projects may offer higher incentives to attract users.

5. Can I access my funds while they’re staked?

Usually, no. Most platforms require a lock-up period, during which your funds are inaccessible. Some offer “flexible staking” with lower returns but the ability to withdraw at any time.

6. What’s the minimum amount needed to stake crypto?

It depends on the coin and platform. For example, Ethereum 2.0 requires 32 ETH to stake directly, but many exchanges let you stake much smaller amounts via staking pools.

7. Is staking better than mining?

For most users, yes. Staking doesn’t require expensive hardware or massive electricity usage like mining. It’s also more eco-friendly and easier to get started.

8. Which platforms are best for beginners?

Trusted centralized exchanges like Coinbase, Binance, Kraken, and Crypto.com offer user-friendly staking options. For more control, consider wallets like Trust Wallet or Ledger for decentralized staking.

9. Can I lose money staking crypto?

Yes, especially if the token loses significant value or if you stake on an insecure platform. Always do your research and only stake coins with a strong reputation and use case.

10. What are the tax implications of staking?

In many countries, staking rewards are treated as taxable income. Be sure to consult a tax professional or check local laws to remain compliant.

Author Bio – Ana Milojevik

Ana Milojevik is a fintech writer, blockchain analyst, and long-time crypto enthusiast with a strong focus on decentralized finance and passive income strategies. Over the past five years, Ana has conducted in-depth market research on staking platforms, tokenomics, and investor behavior in the digital asset space. Her deep understanding of blockchain protocols and staking mechanisms has helped beginners and seasoned investors alike navigate the complexities of earning crypto rewards.

In this article, Ana brings her insight to the forefront, breaking down the essentials of staking for those looking to enter the crypto ecosystem. With a practical approach and a passion for accessible financial education, Ana offers readers a reliable starting point in their staking activities.

Ana Milojevik has conducted extensive research on the mechanics, risks, and reward structures of cryptocurrency staking. Her analysis covers both beginner-friendly platforms and advanced staking protocols, offering readers a comprehensive guide to starting their staking journey.