Crypto Staking: How It Works & What Rewards You Earn?

You might have heard about fixed-income assets, like corporate and government bonds, where you can earn monthly or yearly interest. Well, when it comes to cryptocurrencies, such a process is known as staking. In cryptos, you can’t earn interest in dollars, but instead, you earn a specific percentage of crypto coins in your portfolio that you set aside and lock for staking. 

In this blog post, we will break down every aspect of staking and all you need to know about crypto staking rewards and everything associated with it. 

Crypto staking is a simple process where you lock your crypto coins in a blockchain network in order to earn a specific percentage of what you stake in total. Staking cryptocurrencies further allows you to enjoy the participation right in proof-of-stake blockchains. However, there are many significant features associated with the process of crypto staking which we will discuss further throughout this blog post. 

The amount of earnings through crypto staking depends on the number of digital assets you lock in the blockchain. Let’s see an easy example to understand this: 

For example, a blockchain is offering you 10% rewards to stake cryptocurrencies for a month, and you are locked in 100 crypto coins with the blockchain. After a month, you will receive your 100 tokens, plus 10% extra tokens as your crypto staking reward. 

So, is staking crypto worth it? The answer is absolutely yes. Staking cryptocurrencies is much less risky with confirmed returns compared to trading cryptocurrencies. 

Here are some of the crucial and basic steps in order to yield effectively from crypto staking. 

1. Select Cryptocurrency: 

Since not all cryptocurrencies offer crypto staking rewards, it is necessary to first find the relevant token. Crypto tokens that specifically use PoS (Proof of Stake) or some mechanism similar to that support crypto staking. 

2. Buy the Crypto: 

The next step is to buy the cryptocurrency you would like to stake. You can find, choose, and buy the cryptocurrency of your choice from many crypto exchanges. However, it is always good to research the legit exchanges and avoid getting scammed. 

3. Choose a Platform for Staking:

The most crucial part of this process is to choose the best crypto staking platform. The platform you select decides what type of crypto staking. Furthermore, it determines whether the storage for the token is noncustodial or custodial. 

4. Stake Your Cryptos:

Once you acquire the cryptocurrencies and select the staking platform of your choice, it’s time to lock in your cryptos in the blockchain for staking for a defined period of time. You simply have to follow the platform protocols and regulations to successfully stake your cryptocurrency. 

5. Collect Your Rewards:

You can collect your rewards from staking in the form of cryptocurrencies after a defined period, as discussed with the platform. However, sometimes it might take longer to collect the staking rewards because of various reasons, including network congestion, protocol changes, etc.

As discussed above, choosing the right cryptocurrency for staking is the most important decision you need to make for effective results. Following is a list of the best cryptos for staking:

• Tron: (20%)
• Polkadot: (10%-12%)
• Ethereum: (4%-6%)
• Cardano: (5%)
• Solana: (2%-7%)
• Binance Coin: (7%-8%)
• Cosmos: (7%-10%)
• Avalanche: (4%-7%)

The above-mentioned cryptocurrencies have the most potential for crypto staking if used correctly with the right strategy. The planned staking will not only grow your portfolio but also give you detailed information about the crypto projects. 

Staking cryptocurrencies can be risky, similar to other activities in the crypto world. If you don’t pay enough attention while staking your assets, you could lose money. Here are some important risks to consider:

• All the staking contracts include a defined lock-in time. During this time, you cannot withdraw your locked cryptos. If the overall value of your tokens falls during this period, you could face a loss until the price goes back up.

• It is a requirement of many staking pools to send cryptocurrencies to a specific wallet that you can’t control. If the exchange is not secure or is dishonest, you might lose your assets.

• Certain staking protocols need you to set up your wallet and download specific software. If you make a mistake, you could expose your assets to a potential risk of hacking.

• While smart contracts remove the necessity for middlemen, they can still have problems. The code might contain bugs that are not fixed in time. Many protocols have ongoing programs to find and fix these bugs before they lead to costly issues.

Just like cryptocurrencies, there are many crypto wallets available in the market for staking. However, it is necessary to select the right and legitimate wallet for higher security for your cryptocurrencies. The following are some of the best crypto wallets for staking with top-notch security features:

• Trust Wallet (Supports BNB, Tron, Cosmos, Tezos, etc.)
• Ledger (Supports Ethereum, Cosmos, Polkadot, etc.)
• Exodus Wallet ( Supports Cardano, Solana, Algorand, etc.)
• MetaMask (Supports Ethereum)
• Phantom Wallet (Supports Solana)

Note: It is good to first check if the wallet is custodial or non-custodial, because a non-custodial wallet is preferable for staking since you have the key to your wallet.

Yes, staking rewards are considered income. In 2023, the IRS declared that you must pay taxes on these rewards once acquired or transferred. You have to pay income tax based on the fair market value (FMV) of the crypto staking rewards once received. 

If you trade or sell these tokens later, you will have to report a capital gain (or loss). Staking rewards can lead to two types of tax obligations:

• Income tax: You pay tax on the basis of the fair market value of the crypto tokens at the time you acquire them.
• Capital gains or losses: After you sell the tokens, evaluate the difference between their fair market value when you received them and their value when you sold them.

Yes, you can sell staked crypto, but it depends on how you staked it. If your crypto is locked in traditional staking, like on Ethereum or Polkadot, there is a specific time period for which you have to wait. It can take a few days or even weeks to unstake it before selling. This time period of waiting is called the unbonding or unstaking period. 

In liquid staking, there are no restrictions on selling the token. In this type of staking, you get a special token that represents your staked crypto. Some crypto exchanges, like Binance or Coinbase, offer flexible staking, which may allow you to unstake and sell right away. However, other platforms still require a waiting period. This is why it is recommended to always check the rules of the platform or method you used for staking.

You can make $1,000 a month from crypto staking, but it depends on how much you invest and the rewards from the coin you choose. Some coins offer better rewards, usually between 5% and 20% per year. To earn $1,000 a month, you would probably need to stake a large amount, like $40,000 to $60,000, based on the coin’s reward rate. 

Remember, prices can go up or down, so your earnings might change. Staking is a good way to earn passive income, but you should research and understand the risks before you start.

You can earn within a range of 10% to 20% each year by investing your money in certain cryptocurrencies through staking. This can be a profitable way to grow your investment in 2025 with the maximum potential and lower risk factors. To do this, you need to choose cryptocurrencies that use the proof-of-stake model. 

Staking helps you earn rewards while also supporting the blockchain of the cryptocurrency you own. The main advantage of staking is that you can grow your crypto over time. Instead of leaving your crypto idle, staking allows you to earn while helping to secure the blockchain.

The number of crypto staking rewards you can earn varies frequently. It depends on where you stake your coins, which cryptocurrency you choose, and how many people are also staking that coin. If you use a crypto exchange for staking, the rewards may differ. Some exchanges take a percentage of your staking reward, while others give you the full amount. Each platform has its own rules for rewards.

Lastly, keep in mind that staking yields can vary based on the number of people involved and the total reward of the pool.

Crypto staking and mining both help secure blockchains. Mining BDAG with X1 Miner & TG Tap Miner is an easier way for investors to make money compared to other methods.

Over 1.2 million people are mining BDAG using the X1 crypto mining app and the TG Tap Miner game. According to the statement reported by the CEO, Anthony Turner, over 400k users are continuously active in the Tap Miner game, with 80k users in the X1 mobile app. 

Mining is not just about taps and pressing buttons. Users contribute to the BlockDAG ecosystem in real time. The platform offers user-friendly mobile tools and gaming features, allowing even non-technical people to become miners.

Furthermore, the recent BlockDAG Keynote 3 verified that 10k physical miners, including the X30 model, are set to ship before the mainnet release. So far, BlockDAG has successfully sold over 16.5k miners, generating more than $6.9 million in hardware sales. 

Regarding the BDAG coin, it has raised more than $212 million, with 19.2 billion tokens sold. Its price has increased by 2380% since the first batch, reaching $0.0248 in Batch 27. Crypto analysts considering it as the most profitable crypto to mine, predicting it could hit $20 by 2027.