How to get your dust-collecting crypto to generate passive rewards

Cryptocurrency staking could be a way to earn rewards off your cryptocurrency wallet without lifting a finger.

DMITRY DEMIDKO//UNSPLASH

Cryptocurrency staking could be a way to earn rewards off your cryptocurrency wallet without lifting a finger.

Earning passively is the ultimate goal for many investors. It’s a brilliant way to untether your finances from your time and labour and earn while putting your feet up.

Unfortunately, this isn’t easy. The costs and barriers to entry assets like property or self-sufficient businesses may be too high for the majority of New Zealanders. But luckily, there’s a different option.

Cryptocurrency staking is a way to earn rewards off your cryptocurrency wallet without lifting a finger. And the best part? All you need to get started is around $1 and a free Swyftx account.

How does staking work?

Staking is a way to earn a certain percentage of rewards from holding eligible cryptocurrencies (additional to any value gains those coins see while you’re staking them).

There are no fees associated with staking and any rewards you earn will be automatically added to the total balance of the staked cryptocurrency you hold. Unlike crypto mining, you don’t need any specialist equipment to stake crypto, just internet access.

The reason your cryptocurrency earns rewards while staked is because the blockchain uses it to ensure its transactions are verified and secure. This is done using what’s called a ‘proof of stake’ model that is far quicker and more energy-efficient than the ‘proof of work’ model that major coins such as Bitcoin and Ethereum use.

It's essential to do your research and consider seeking financial advice before investing in cryptocurrency.

123RF

It’s essential to do your research and consider seeking financial advice before investing in cryptocurrency.

How much could I earn from staking and what are the risks?

The percentage of rewards you earn depends on which cryptocurrency you buy. At the time of writing well known coins such as Cardano and Solana are earning 4.5 per cent rewards-per-year (RPY) and 6.5 per cent RPY on the Swyftx platform.

However, some lesser-known cryptocurrencies can be even more rewarding. For example, Kava is earning 20 per cent RPY, while Polkadot and Polygon are earning 12 per cent RPY.

Keep in mind that cryptocurrencies are volatile and you’ll have to hold whatever cryptocurrency you’re staking. If the cryptocurrency you’re holding drops in value while you’re staking it, whatever rewards you earn may not be enough to cover those losses.

That’s why it’s essential that you research and consider seeking financial advice before investing to try and find a cryptocurrency that is both likely to increase in value and offers great staking rewards.

How can I start cryptocurrency staking?

To start staking cryptocurrency you need a Swyftx account. Opening an account is free and takes about two minutes – you’ll just need a phone number, email and a valid ID such as your passport or drivers licence.

Once you’re all set up you can start staking in two easy steps:

  • Buy a cryptocurrency that’s eligible for staking on Swyftx. These include many major coins such as ADA, SOL and ATOM.
     
  • Select the coin in your wallet that you’d like to stake and start earning rewards.

Swyftx is one of Australia and New Zealand’s most trusted cryptocurrency exchanges, with over 3,500 reviews on Trustpilot and a score of 4.7/5.

Disclaimer: The information in this article is provided for general information only. Swyftx does not assume any responsibility for giving financial or other professional advice and disclaims any liability arising from the use or inaccuracy of the information in this article. If you require expert financial advice you should always seek assistance from a professional adviser and consider your risk appetite before you invest.

This news is republished from another source. You can check the original article here

Be the first to comment

Leave a Reply

Your email address will not be published.


*