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Staking, Yield Farming & Earning Passive
Learn how to earn passive income with your cryptocurrency holdings
Instead of just holding cryptocurrency, you can earn passive income by participating in network operations through staking, providing liquidity, or yield farming.
Key Point: These methods allow your crypto to work for you, generating returns while you hold your assets.
What is Staking?
Staking involves locking up your cryptocurrency to help secure a proof-of-stake blockchain network. In return, you earn rewards for your contribution to network security.
Ethereum, Cardano, Solana, and Polkadot are among the most popular staking coins due to strong networks and consistent staking rewards.
Yield Farming
Yield farming involves providing liquidity to decentralized finance (DeFi) protocols in exchange for rewards, often in the form of additional tokens.
Staking vs Yield Farming
| Aspect | Staking | Yield Farming |
|---|---|---|
| Risk Level | Low to Medium | Medium to High |
| Potential Returns | 4–20% APR | 10–100%+ APR |
| Complexity | Simple | Complex |
| Lock-up Period | Often required | Usually flexible |
| Best For | Long-term holders | Active DeFi users |
