Long time readers know I am a big fan of Crypto Staking and the passive rewards they bring me each month. While many believe passive income is a myth, I continue to profit monthly, and earn six-figures yearly, by doing nothing more than letting my blockchain investments work for me. It doesn’t get much more passive than that.

And while the US Government continues to spin in circles trying to determine what federal regulation might eventually look like, the opportunity to score big on high-paying interest rewards that dwarf anything your favorite bank can offer.

With that being said, let’s get started.

What is Crypto Staking?

For those who have never been introduced to Crypto Staking, the concept is fairly straightforward. Essentially, with certain coins, you have the ability to collect generous rewards, similar to the interest you might earn in a bank, but much more lucrative. These cryptos, classified as “Proof of Stake” tokens can be allocated into high-interest staking pools, where the blockchain puts them to use via a consensus mechanism that ensures the veracity of all transactions. For your part in the testing, you benefit in the form of free tokens that can be paid yearly, monthly, or even daily in some cases, depending on the specific project terms. While your coins are staked, you cannot trade or utilize them in personal transactions. Instead, they must be un-staked, which takes varying amounts of time for each platform, before you can control them again.

To Stake or Not?

My rules for staking are fairly simple.

One, I only hold coins I have high conviction in and look at as long-term investments.

Two, the APY % must be worth my while to temporarily surrender access to my tokens.

If those two conditions are met, I see no issue with letting my assets continue to work for me. Even with the current state of the market, the rewards are still astounding and you can continue to rack up hefty returns. That will only improve once the bull market eventually roars again.

The Risks of Staking

While staking is obviously a fantastic way to earn passive income, that is not to say it without risks. While the tokens are locked, you are temporarily unable to make transactions should market conditions quickly shift. If a token took a fast-moving precipitous drop in value, not only would you possibly be unable to react quickly in divesting yourself of the project, but your staking rewards would also be less valuable as well.

Also, depending on the specific project terms, some take longer to pay out than others. However, if you are taking a longer term approach to projects, immediate liquidity should not be a significant concern.

For myself, I attempt to minimize my risk exposure by cashing out my rewards as quickly as I’m allowed and to convert them to cash or use them to secure bags of other low-cap gems I am interested in. This is how I continue to grow my overall crypto portfolio.

Where I Am Currently Staking

These are the platforms I am using at the moment to earn consistent passive income.

These are certainly not the only places to stake your tokens, but the ones I am currently using successfully. These are also projects I have strong belief in and think should continue to rise in token price over the next year, thus increasing their overall value of my returns.

Aleph Zero (AZERO)

APY: 11.88%

Terms/Requirements: N/A

More Info: https://azero.dev/#/staking

Alkimi (ADS)

APY: Minimum 10%

Terms/Requirements: 3 Month Staking Period — Minimum 5,000 ADS tokens

More Info: https://labs.alkimi.org/soft-staking

Biometric Financial (BIOFI)

APY: 15 to 30%

Terms/Requirements: Variable

More Info: https://app.biofitoken.io/

Blocksquare (BST)

APY: 11.5 to 45%

Terms/Requirements: N/A

More Info: https://app.oceanpoint.fi/

Constellation (DAG)

APY: Variable

Terms/Requirements: 1 Month Staking Period

More Info: https://lattice.is/rewards

Greenheart (CBD)

APY: 7.85 to 12.17%

Terms/Requirements: 1 Year Staking Period

More Info: https://dapp.greenheartcbd.com/

Terra Luna (LUNA)

APY: 6%

Terms/Requirements: 21 Days to Unstake Assets

More Info: https://station.terra.money/stake

Vera (VRA)

APY: 15%

Terms/Requirements: 3 Days to Unstake Assets

More Info: https://verawallet.io/

Work Smart, Not Hard

One should always be prepared to seize the right opportunity when it presents itself.

While there are certainly some risks associated with staking, I have never been averse to taking chances when I believe the payoffs justify bold choices.

It is worth a reminder though, that one should never invest money you are not prepared to lose. Even though I’ve enjoyed many more wins than losses in crypto, I do realize that anything can happen at any time and have mentally prepared myself to be able to absorb any sharp downturns in fortune.

As always, do your own research before investing in any project and make sure you believe in a project so that ownership is fully your choice and not just a hot tip from someone else.

And yes, it is true that to get large five-figure staking rewards each month, you do need to hold a significant amount of tokens in your portfolio. I’m not advocating that a newcomer to the space will make anything close to this right off the bat. However, even if you are only adding a few hundred dollars a month in passive income, it’s a start and can be built up over time. We all have to start somewhere right?

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