Best Ways To Earn Passive Income With Crypto In 2022

The easiest way to get started with passive cryptocurrency income is to look at the various options for staking crypto on exchanges. Centralized exchanges are able to remove all the complexities that come with staking crypto assets on decentralized financial protocols, making them the perfect choice for anyone who is still a bit new to the wild world of cryptocurrencies.

As a reminder, staking is a key aspect of cryptocurrencies that operate on proof of stake (PoS) rather than proof of work (PoW). In PoS, crypto users point to the underlying crypto token associated with the blockchain network to mine new tokens instead of using the specialized, energy-intensive hardware used in PoW systems like Bitcoin.

When users stake their crypto holdings as part of the consensus process, they earn a return denominated in the same cryptocurrency that they staked on the network. These tokens could be newly generated, charged as transaction fees, or both.

While crypto PoS systems can be a bit difficult to fully understand, many crypto exchanges and financial institutions offer to point coins on behalf of their users.

Although centralized institutions charge an additional fee for their added convenience, it is worth it in many situations due to the simplification of the entire process. Of course, it should be noted that staking through a centralized custodian removes the key principle of decentralization that underlies the entire value proposition of crypto.

Three of the most popular options for staking assistance are Kraken, Coinbase, and Binance.

kraken

Kraken currently offers twelve different crypto assets to stake on its platform. That said, it should be noted that non-PoS based assets such as bitcoin and US dollars are mixed with PoS currencies such as Cosmos and Tezos.

Kava is the crypto asset that pays the highest annual Pos reward on Kraken at 20%.

Kraken offers on-chain and off-chain betting on its platform. Returns earned from staking euros, US dollars, and bitcoin come from Kraken’s internal programs rather than the on-chain protocol picket.

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