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How to stake cryptocurrencies to get passive income using Trust Wallet
Unlike traditional finance, which often generates little to no interest when you save, cryptocurrency staking offers a promising alternative for earning passive income. That’s because traditional savings accounts and investments fail to outpace inflation with minimal returns.
However, cryptocurrency AND blockchain Technology has introduced new opportunities for individuals to grow their wealth by staking cryptocurrencies on platforms like Trust Wallet.
Cryptocurrency staking is the process of holding and locking up your digital assets to support the operations of a blockchain network, allowing you to earn rewards in the form of additional cryptocurrency.
Whether you are a seasoned cryptocurrency enthusiast or a newcomer eager to explore new financial opportunities, this guide will provide the knowledge and tools to get started staking cryptocurrency and earning passive income on Trust Wallet.
Stakeout categories
Cryptocurrency staking is divided into two categories, namely:
Active Crypto Staking it allows you to participate in a blockchain network by validating transactions and creating new blocks that earn token rewards when you delegate tokens to a validating node.
Passive cryptocurrency staking lock your tokens on a blockchain network to ensure security and efficiency. Passive cryptocurrency staking doesn’t take much time, but typically results in lower token payouts than active staking.
Types of Cryptocurrency Staking
Cryptocurrency staking can be non-custodial or custodial. While non-custodial staking allows you to keep your coins staked in your digital wallet, custodial staking forces cryptocurrency holders to move their tokens to a staking platform.
Staking takes many forms, each of which has a specialized function. Some of these types include: