Why staking is great for passive income 

Having spent 6 years in the market as a trader, I have tried a large number of strategies to generate income in crypto. When you actively trade and earn (or unfortunately lose) on volatility, sooner or later you realize that you want a stable and above all passive income without constant monitoring and market analysis. And staking is perfect for that. 

For those unfamiliar with how staking works, it is a process where you deposit your funds on a staking platform. During staking, your funds keep the blockchain running, and you in turn are rewarded for this in the form of a few tens of per cent per annum on your deposit, which is similar to traditional banking, but with much more attractive interest rates. 

The staking process itself is quite simple and reliable. And you can make good money from it, passively, if you find a place to put your assets. 

However, you won’t find good returns on large and popular platforms such as Binance, Bybit and others. 2.3% per annum for a staking bitcoin whose volatility jumps by 10% every week? That’s a dubious prospect. I’d rather not stake at all. 

It was this situation that gave me the idea to do a new survey and find platforms that could offer a better interest rate for which I would really like to stake my coins. Another criterion for the search was the mandatory insurance and other forms of collateralisation of the assets staked on the platform. My research and subsequent conclusions will be discussed in this article. Let’s get started! 

Advantages and disadvantages of staking. How do traders make money on it? 

It is worth starting with the pros and cons of staking in order to understand why this method of generating passive income is suitable for us. 

The benefits of staking 

Staking allows you to generate a stable income on your assets, similar to a deposit in a bank. 

If you choose the right staking platform, you can earn good returns of up to 30% per annum on the most popular coins. 

Staking is great for traders and investors who hold crypto assets and can earn extra money over the time they hold the assets. 

Some platforms can offer insurance for staked assets, which greatly increases the security of staking and the credibility of the platform. 

The disadvantages of staking 

If you stake more than just stablecoins, there may be a volatility risk that could affect the profit you make. 

Some platforms may lock your assets without the ability to withdraw the coin until the end of the stake period. 

In addition, some platforms may not only offer fixed rates, but also variable rates that can change depending on market conditions. This means that if the rate falls, you may receive less income than you had originally planned. 

Why is ONSTAKING the best platform for staking? 

After analyzing several dozens of staking platforms, I have essentially settled on just two more or less worthwhile platforms. These are ONSTAKING and NEXO. Both platforms are remarkable in their own way, and both can be used for long-term staking of your coins. However, I can say from experience that ONSTAKING offers more attractive conditions for staking: 

Compared to larger marketplaces, ONSTAKING offers really high yields. Up to 24% per annum on stablecoins and up to 18% per annum on most popular cryptocurrencies plus compound interest. 

The stake period can be anything from 1 day to 1 year. And you can withdraw your funds at any time. 

Thanks to the added security of the platform’s guarantors and the insurance of all staked assets, you don’t have to worry about hacking smart contracts and other ‘charms’ that the average investor may face. 

There is no minimum deposit on the platform. You can start with any amount. 

All these ingredients add up to a very attractive picture for staking. 

Real cases: How to make money with USDT and ETH staking on ONSTAKING 

And to show you examples of real-life staking, I’ve highlighted a few case studies. 

Case 1: USDT stake at 24% APR 

After registration, in your personal account you can choose the currency for staking. Available as stablecoins: 

So do many popular cryptocurrencies: 

I originally came to the platform specifically to stake my stablecoins. Initially I chose to stake at 18% per annum with daily compounding, but after a few weeks, having made sure that the platform was paying and there were no pitfalls, I moved my stablecoins to an account with annual interest and a yield of 24% per annum. So I have $6700 in stablecoins. And for one year I will receive an additional $1,608. And I will receive this amount passively, just for owning the asset. 

Case 2: Staking ETH at 12 per cent per annum. 

After the stable coins I went further and decided to deposit some of my ether at 12% per annum and chose an account with daily compound interest. I have deposited 4 ETH ($10,700) and I plan to get 0.48 ETH ($1,284) in a year, and this is without taking into account the effect of compound interest, as I can often withdraw ether somewhere and my deposit is constantly increasing and decreasing. That’s why I’ve chosen to pay interest daily, so that I get my earnings immediately and can withdraw them quickly to reinvest in other projects. 

ONSTAKING comparison with other staking platforms 

Here I will compare ONSTAKING with another good staking platform NEXO, which I mentioned above. 

For various stablecoins, NEXO offers up to 14–16% per annum, but for cryptocurrency, let’s take the same ether for example — only 8% per annum. 

ONSTAKING offers up to 24% APR on stablecoins and up to 18% APR on the same ETH. If you stake on the platform for several years, the difference is enormous. 

Both platforms insure their investors’ deposits and allow them to withdraw their funds at any time, which is a definite plus. Many other platforms cannot boast such conditions. 

However, as we are in staking to make money, all other things being equal, the platform that offers higher returns wins, which is why I have chosen ONSTAKING as my main platform for staking. 

Why is staking the best passive income strategy? 

Staking is an ideal passive income strategy. However, the main challenge is to find a safe platform that offers good returns. And there are very few of these left. 

Often small platforms, such as ONSTAKING and NEXO, grow into large companies and are no longer able to offer the same favorable conditions. Therefore, you will need to regularly research different platforms and move your assets to those that offer a higher annual percentage rate and comparable risks. Therefore, do not forget to organize such a recertification at least once a year and find platforms for profitable staking so that your passive income does not diminish over time. 

Ideally, of course, you should find sites with fixed rates. The crypto market is very volatile. You don’t know what’s going to happen tomorrow. And if all your methods of earning in crypto stop working, it will be nice to realize that you stake a weighty sum, which gives a guaranteed income, and you will earn on any, even the worst market.