Supercharge your crypto with Rewards and Staking.

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<p><span style="color: rgb(0, 0, 0);">Looking for a way to put your crypto to good use? Staking makes it possible to earn passive income with crypto you already own.</span></p>
<h2><span style="color: rgb(0, 0, 0);">What is staking?</span></h2>
<p><span style="color: rgb(0, 0, 0);">Staking is the act of pledging your crypto to help secure and verify transactions on a blockchain. In return for this, you earn rewards from the network.</span></p>
<h2><span style="color: rgb(0, 0, 0);">The benefits of staking</span></h2>
<p><span style="color: rgb(0, 0, 0);">There are several benefits to staking your crypto:</span></p>
<ul>
<li style="color: rgb(0, 0, 0);"><span style="color: rgb(0, 0, 0);"><strong>Passive income.</strong> Staking is mostly a passive activity, which means you can earn rewards without having to do much (or any) work.</span></li>
<li style="color: rgb(0, 0, 0);"><span style="color: rgb(0, 0, 0);"><strong>Returns.</strong> Staking typically offers a higher return on investment (ROI) than simply holding crypto, especially if the staking wallet compounds your interest.</span></li>
<li style="color: rgb(0, 0, 0);"><span style="color: rgb(0, 0, 0);"><strong>Participation.</strong> You can support the network you believe in and help it grow.</span></li>
<li style="color: rgb(0, 0, 0);"><span style="color: rgb(0, 0, 0);"><strong>Low cost.</strong> Staking can help you earn rewards more cheaply than mining, as staking&nbsp;requires less computing power and no specialized equipment.</span></li>
</ul>
<h2><span style="color: rgb(0, 0, 0);">The risks of staking</span></h2>
<p><span style="color: rgb(0, 0, 0);">There are a few risks to consider before staking your crypto:</span></p>
<ul>
<li style="color: rgb(0, 0, 0);"><span style="color: rgb(0, 0, 0);"><strong>Volatility.</strong> The value of your staked assets can go up or down, just like any other crypto asset.</span></li>
<li style="color: rgb(0, 0, 0);"><span style="color: rgb(0, 0, 0);"><strong>Loss of control.</strong> Once you&rsquo;ve staked your assets, you won&rsquo;t be able to access them until you unstake them (which usually takes a set period of time).</span></li>
<li style="color: rgb(0, 0, 0);"><span style="color: rgb(0, 0, 0);"><strong>Slashing.</strong> If a validator sends invalid transactions, the network may penalize, or &ldquo;slash,&rdquo; parties who would otherwise receive rewards. This is meant to discourage bad behavior on the network.</span></li>
</ul>
<h2><span style="color: rgb(0, 0, 0);">Proof-of-stake vs. proof-of-work</span></h2>
<p><span style="color: rgb(0, 0, 0);">Staking only happens on cryptocurrency networks that use the proof-of-stake model as their consensus mechanism. A consensus mechanism is the process that a blockchain network uses to process payments, confirm transactions, and add new blocks to the chain.</span></p>
<p><span style="color: rgb(0, 0, 0);">The two most common consensus mechanisms used by cryptocurrencies are proof- of-work (PoW) and proof-of-stake (PoS).</span></p>
<p><span style="color: rgb(0, 0, 0);"><img src="https://cdn.buttercms.com/5ok7X1QeQWg6C4oUFWDQ" alt="undefined"></span></p>
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<h2><span style="color: rgb(0, 0, 0);">Proof-of-Work</span></h2>
<p><span style="color: rgb(0, 0, 0);">PoW is the method of choice for early cryptos, including Bitcoin.</span></p>
<p><span style="color: rgb(0, 0, 0);">In PoW systems, participants compete to solve complex mathematical problems. The first person to solve the problem adds the next block to the chain and receives a reward. PoW is a very energy-intensive process, as it requires miners to run powerful computers 24/7.</span></p>
<p><span style="color: rgb(0, 0, 0);">Winning the block reward comes down to &ldquo;outcomputing&rdquo; others.</span></p>
<h2><span style="color: rgb(0, 0, 0);">Proof-of-Stake</span></h2>
<p><span style="color: rgb(0, 0, 0);">PoS is a more eco-friendly way to verify transactions.</span></p>
<p><span style="color: rgb(0, 0, 0);">In PoS systems, participants pledge their crypto assets to help secure and verify transactions on the network. The more assets you stake, the higher your chances of being chosen to add the next block to the chain.</span></p>
<p><span style="color: rgb(0, 0, 0);">This process requires neither specialized hardware nor additional computing power.</span></p>
<p><span style="color: rgb(0, 0, 0);">PoS systems also have different staking rules than PoW systems. For example, some PoS networks require participants to lock up their staking rewards for a set period of time, while others allow stakers to claim their rewards as they earn them.</span></p>
<p><span style="color: rgb(0, 0, 0);">In sum, staking lets you support a blockchain network &mdash; and get passive rewards for doing so &mdash; without expending large amounts of energy.</span></p>
<h2><span style="color: rgb(0, 0, 0);">How staking works</span></h2>
<p><span style="color: rgb(0, 0, 0);">When you stake your crypto, you&rsquo;re essentially holding it in a wallet that&rsquo;s connected to the network called a staking wallet.</span></p>
<p><span style="color: rgb(0, 0, 0);">Once your staking wallet is set up, and you&rsquo;ve deposited your crypto, a &ldquo;bonding period&rdquo; sets in, during which the crypto is locked and ineligible for rewards. After this window, you&rsquo;re securing the network, so the reward distribution begins.</span></p>
<p><span style="color: rgb(0, 0, 0);">The size of the rewards will depend on the staking rules of the network you&rsquo;re helping to stake.</span></p>
<p><span style="color: rgb(0, 0, 0);">For example, some networks give stakers a fixed reward for each block they add to the chain, while others give stakers a share of the transaction fees associated with the block.</span></p>
<p><span style="color: rgb(0, 0, 0);">Most staking wallets will let you know how much you can expect to earn in rewards, as well as how long it will take to earn them.</span></p>
<h2><span style="color: rgb(0, 0, 0);">Why can&rsquo;t I stake all crypto I own?</span></h2>
<p><span style="color: rgb(0, 0, 0);">Many cryptos &mdash; such as bitcoin, dogecoin, and litecoin &mdash; don&rsquo;t use proof-of-stake to verify their network, meaning you can&rsquo;t stake them. Those cryptocurrencies get secured through proof-of-work processes like mining.</span></p>
<h2><span style="color: rgb(0, 0, 0);">How are staking rewards taxed?</span></h2>
<p><span style="color: rgb(0, 0, 0);">In most places, staking rewards are taxed as income. Consult an accountant or other financial professional for the specifics of your region.</span></p>
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Earn Crypto Rewards by Staking Your Coins: A Guide to Staking Benefits, Risks & How It Works

What is crypto staking?

Staking, Explained

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<p><span style="color: rgb(0, 0, 0);">In the world of crypto, stability has often been an elusive quality.</span></p>
<p><span style="color: rgb(0, 0, 0);">However, stablecoins have emerged as a game-changer by combining the advantages of cryptocurrencies with price stability. Beyond their role as a reliable medium of exchange, stablecoins offer another appealing feature: the opportunity to earn rewards. In this article, we will explore why people are increasingly turning to stablecoins to earn rewards and how this practice benefits crypto holders.</span></p>
<h2><span style="color: rgb(0, 0, 0);">Capitalizing on Price Stability</span></h2>
<p><span style="color: rgb(0, 0, 0);">One of the key reasons why people choose to earn rewards on stablecoins is their inherent price stability. Unlike volatile cryptocurrencies such as Bitcoin or Ethereum, stablecoins are designed to maintain a stable value, often pegged to a reserve asset like the US dollar. This stability provides individuals with a predictable environment, making it easier to plan and capitalize on their holdings.</span></p>
<p><span style="color: rgb(0, 0, 0);">By earning rewards on stablecoins, you can put your capital to work without worrying about sudden price fluctuations. This allows for a more reliable and consistent earning, attracting risk-averse purchasers who seek stable growth rather than speculative gains.</span></p>
<h2><span style="color: rgb(0, 0, 0);">Passive Income Generation</span></h2>
<p><span style="color: rgb(0, 0, 0);">Earning rewards on stablecoins offers a passive income stream, making it an attractive option for individuals seeking financial autonomy. Instead of letting their stablecoins sit idle in a wallet, holders can earn rewards through Blockchain.com&rsquo;s Passive Rewards Accounts.</span></p>
<h2><span style="color: rgb(0, 0, 0);">Protection Against Inflation</span></h2>
<p><span style="color: rgb(0, 0, 0);">Inflation erodes the purchasing power of traditional fiat currencies over time. However, stablecoins pegged to a stable reserve asset, such as the US dollar, can act as a hedge against inflation. By earning rewards on stablecoins, individuals can potentially outpace inflation.</span></p>
<p><span style="color: rgb(0, 0, 0);">This feature is particularly appealing in regions experiencing high inflation rates or economic instability. Stablecoins offer an alternative to traditional banking systems and volatile local currencies, providing individuals with a stable store of value and an opportunity to preserve and grow their wealth.</span></p>
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Earn Interest on Stablecoins: Hedge Against Inflation & Generate Passive Income with Crypto

The Power of Earning Rewards on Stablecoins: A Win-Win for Crypto Holders

Rewards on Stablecoins

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<p><span style="color: rgb(0, 0, 0);">For those who have a market view on where the price of Bitcoin will go, Active Rewards can be used to maximize your potential rewards at up to 10x the rate of Passive Rewards.</span></p>
<h2><span style="color: rgb(0, 0, 0);">What is Active Rewards?</span></h2>
<p><span style="color: rgb(0, 0, 0);">Active Rewards provides a way for you to earn on your Bitcoin in an otherwise down or flat market. Specifically, it lets you subscribe to a strategy to earn rewards if you believe the price of Bitcoin won&rsquo;t go up significantly in the next week.</span></p>
<h2><span style="color: rgb(0, 0, 0);">How does it work?</span></h2>
<p><span style="color: rgb(0, 0, 0);">Every week, a new Active Rewards strategy is made available to all Active Rewards customers that sets a trigger price for Bitcoin that is higher than the current market price. If you believe the price will be under the trigger price at the end of the week, subscribe to the strategy and earn an annual rewards rate on your Bitcoin, paid out weekly on Fridays at 8am UTC.</span></p>
<p><span style="color: rgb(0, 0, 0);">The trigger price and the rewards rate are set at the start of each weekly cycle and if you don&rsquo;t withdraw your funds you&rsquo;ll automatically be rolled into the strategy for the following week.</span></p>
<p><span style="color: rgb(0, 0, 0);">Since the specific trigger price changes each week, let&rsquo;s take a look at some scenarios using the following valuesa</span></p>
<ul>
<li style="color: rgb(0, 0, 0);"><span style="color: rgb(0, 0, 0);">Currency: Bitcoin</span></li>
<li style="color: rgb(0, 0, 0);"><span style="color: rgb(0, 0, 0);">Duration: 1 Week</span></li>
<li style="color: rgb(0, 0, 0);"><span style="color: rgb(0, 0, 0);">Annual rate: 8%</span></li>
<li style="color: rgb(0, 0, 0);"><span style="color: rgb(0, 0, 0);">Current price: $20,38</span></li>
<li style="color: rgb(0, 0, 0);"><span style="color: rgb(0, 0, 0);">Trigger price: $22,000</span></li>
</ul>
<h2><span style="color: rgb(0, 0, 0);">Scenario 1 &mdash; Price of Bitcoin is at or lower than the trigger price at the end of the week</span></h2>
<p><span style="color: rgb(0, 0, 0);">Inflation erodes the purchasing power of traditional fiat currencies over time. However, stablecoins pegged to a stable reserve asset, such as the US dollar, can act as a hedge against inflation. By earning rewards on stablecoins, individuals can potentially outpace inflation.</span></p>
<p><span style="color: rgb(0, 0, 0);">This feature is particularly appealing in regions experiencing high inflation rates or economic instability. Stablecoins offer an alternative to traditional banking systems and volatile local currencies, providing individuals with a stable store of value and an opportunity to preserve and grow their wealth.</span></p>
<p><span style="color: rgb(0, 0, 0);"><img src="https://cdn.buttercms.com/QpZYp1qRFO2B80kMiTqc" alt="undefined"></span></p>
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<h2><span style="color: rgb(0, 0, 0);">Scenario 2 &mdash; Price of Bitcoin is higher than the trigger price at the end of the week</span></h2>
<p><span style="color: rgb(0, 0, 0);">If the price of Bitcoin ends the week higher than the trigger price, you&rsquo;ll still receive your rewards for the week but your Bitcoin will be returned to you valued at the trigger price, resulting in a reduction in your Bitcoin-denominated balance.</span></p>
<p><span style="color: rgb(0, 0, 0);">So in the scenario depicted below, you&rsquo;d start the week with 1 Bitcoin, at the end of the week you&rsquo;d receive your 0.00147705 Bitcoin reward, but because the price of Bitcoin went over the trigger price your Bitcoin balance would go down from 1 to 0.88147705 Bitcoin. Thus, you&rsquo;d have a balance of 0.88147705 Bitcoin which would be re-subscribed to earn rewards for the following week.</span></p>
<p><span style="color: rgb(0, 0, 0);"><img src="https://cdn.buttercms.com/3r7o47FGSQKGXSWj6NIR" alt="undefined"></span></p>
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<h2><span style="color: rgb(0, 0, 0);">What are the risks?</span></h2>
<p><span style="color: rgb(0, 0, 0);">While Active Rewards offers compelling weekly rewards on your Bitcoin, weekly market movements above the listed trigger price can reduce your Bitcoin- denominated balance.</span></p>
<h2><span style="color: rgb(0, 0, 0);">How to get started</span></h2>
<p><span style="color: rgb(0, 0, 0);">You can get started by transferring as little as $1 in Bitcoin to an Active Rewards Account:</span></p>
<ol>
<li style="color: rgb(0, 0, 0);"><span style="color: rgb(0, 0, 0);">Log in to your Blockchain.com Wallet using a web browser or a mobile device.</span></li>
<li style="color: rgb(0, 0, 0);"><span style="color: rgb(0, 0, 0);">Click Earn in the navigation bar.</span></li>
<li style="color: rgb(0, 0, 0);"><span style="color: rgb(0, 0, 0);">Find Bitcoin (Bitcoin) Active Rewards in the table and click Get started.</span></li>
<li style="color: rgb(0, 0, 0);"><span style="color: rgb(0, 0, 0);">Select your Bitcoin Trading Account or Bitcoin Private Key Wallet, enter the amount&nbsp;you&rsquo;d like to transfer, agree to the terms, and add balance.</span></li>
<li style="color: rgb(0, 0, 0);"><span style="color: rgb(0, 0, 0);">Your Bitcoin has now been transferred to your Active Rewards Account.</span></li>
</ol>
<p><span style="color: rgb(0, 0, 0);">Note: Active Rewards is not available in all countries. <a href="https://support.blockchain.com/hc/en-us/articles/6868798964508-Who-is-eligible-for-Active-Rewards" rel="follow noopener" target="_blank" style="color: rgb(0, 0, 0);">You can check your eligibility here</a>.</span></p>
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Boost Your Bitcoin Earnings: Active Rewards Explained

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