Sleeping in a bed Made of Crypto Means Waking up With Money in the Bank

Photo by Kate Stone Matheson on Unsplash

How to Earn a Passive Income With Crypto

Getting into altcoins means taking apart your bike and putting it back in one piece again.

Crypto arose out of a marriage between the best nerds in the world and punk rock anarchists. The baby they made is highly technical and promises to change this world for the better.

Getting into Crypto requires multiple steps. You need to download apps and wallets and exchanges and authenticators and do your KYC.

No, that’s not Klone your Cat, it’s Know Your Client.

I am not that technical myself.

I worked for 2 years in a crypto organization that is creating the new decentralized Internet, and I learned more tech language in those 24 months than during my entire life.

My role is to explain the revolution of money to non-tech people.

I follow new trends, opportunities, and developments that seem to stick in the crypto space.

In this short piece, I would love to explain to you what Staking Your Coins means.

I’ll offer a short intro on how to make up to 30% profit by lending out your Crypto within 3 clicks on the two biggest exchanges, Coinbase, and Binance. Just to keep it easy for now.

Be part of the future of money, Stake your Crypto.

The basics of Cryptocurrency Staking

I assume you’re new to crypto and not technical.

The first thing I want to point out about staking your Crypto Coins is that it's helping the environment. Instead of using a lot of energy to mine coins, like Bitcoin, you lend out your crypto for a set amount of time.

This Crypto staking, or lending out your coin to the network, helps to validate transactions. That’s the main reason the Blockchain has been invented, to validate transactions on the network. And to kick out banks and other third-party validators in the long run.

Meanwhile, you are helping to make that specific network more secure too.

When you stake your crypto, you help the revolution of money in multiple ways. It's a green way of securing the network of your coin, and your investment is a share in the revolution of money.

Your reward will be paid in the coin that you stake. The win for yourself is that you will earn a passive income with low risk.

While you sleep.

How to Stake ETH and Other Crypto’s on Coinbase

Let’s dive into the Nr 2 Crypto Ethereum, for now, to keep things safe and simple.

How to stake your ETHs on Coinbase? This big exchange just added this functionality as of the 15th of April, 2021.

Until recently, you needed 32 ETHS to enter stake-dom, which’s over $100.000 at the current price. Happily, there is no minimum requirement anymore. You can bring your ETH to the biggest exchanges like Coinbase, Kraken, or Gemini, and they pay you a yearly yield between 5% and a whopping 17%.

Coinbase is probably the easiest way to stake your ETH. They offer this service in just a few steps.

You will be joining a waiting list though, and staking is only possible in selected countries including the UK, France, Spain, and the US. I suspect the list of countries will grow in a matter of weeks.

This is how to stake your ETH on Coinbase in a matter of 1 click.

• On web or mobile: Go to the Ethereum asset page under your Portfolio and follow the respective prompts to join the waiting list.

  
  

• Make sure to have some ETH in your wallet, there is no minimum balance needed.

  
  

• The first rewards payment is credited after approximately 2 weeks.

When you don’t like waiting lists and you want to start earning crypto interest the next hour, choose the other 3 staking options on Coinbase: Tezos, Algorand, or Cosmos.

This is how you stake your Tezos:

• On your mobile, go to settings and select Financial Services. From there, you can toggle the Staking Rewards icon to opt-in. It’s that easy.
• You need a minimum of 1 XTZ in your wallet, which is around $6,- at the current price. Not a big deal.
• You’ll receive your first staking reward after 30/40 days.

Staking Fees

Big exchanges like Coinbase or Binance are relatively safe compared to smaller platforms.

However, there are downsides. Staking fees are high, up to 25% staking fees for Tezos on Coinbase for example. Also, when you’re a US citizen and make over $600,- a year on staking yields (APY), Coinbase will send you a 1099-MISC for tax payments.

Read more on staking on Coinbase here.

When you are deeper into Crypto already and don’t want to pay the commissions of the big exchanges, check out this list of staking services. You’ll see profits ranging from 5% to 20%. Or simply buy my Ecourse to start staking on Pancakeswap within an hour.

The Ethereum Foundation warns you to do your own research when you choose smaller platforms that promise you bigger profits.

Follow the 3 golden rules of any investment: Don’t invest more than you’re prepared to lose, do your own due diligence, and make your strategy.

The Advantages of using Binance for Staking Coins

Binance is the world’s biggest exchange and offers more coins to stake. US citizens can stake their Cosmos (ATOM) and Algorand (ALGO).

Big advantage over Coinbase is that Binance does not charge any fees for staking

In Binance, you can choose Locked or flexible staking. In Flexible staking, users earn staking rewards by simply holding coins on Binance for the minimum period of one day.

Selling or withdrawing any supported coin at any time stops the receiving of staking rewards, and stopping the process within the day makes you lose the crypto interest.

How to?

You go to the sub-menu Defi staking in the menu Staking and choose the coin you would like to stake. In locked staking, you choose the period after checking out the ROI you will make.

Stake Away or Stay Away?

Coinbase recently jumped into the Defi market and Binance has been there since 2019. They both offer easy 1-click services for people that give up after 7 YouTube movies on which wallet to use, or simply don’t have the time to dive into the Binance Academy.

Yep. Crypto is a real study, and not for the faint of heart.

You can compare big exchanges like Coinbase and Binance with banks. They do the research for you, select ‘stable’ growing crypto assets, and offer you your Crypto Staking Portfolio while making good interest on the side in the case of Coinbase.

Crypto exchange fees is modern day Interest — It’s your reward for the financial safety they offer

When you like to dive deeper into Crypto and take away huge profits while you sleep, you need to do the work first. Learn some basic crypto language that will include a ton of new terms like APR, Liquidity & Farming Pools, Decentralized Exchanges, or Slippage Limits.

I hope this piece served as a warm-up when you decide to Stake your Crypto or even make a deep dive. When you do, here’s a list of the 11 most profitable staking coins to staking on one of the15 platforms on this list.

Stake, Save,

Lucien Lecarme

This story was originally published here.