Last Updated on November 3, 2022 by Bitfinsider
The cryptocurrency market’s extreme volatility can be both advantageous and disadvantageous for investors and traders. Volatility generates profitable possibilities, but it can also result in losses. However, passive income strategies could be useful in offsetting these losses.
Even under difficult market situations, such as bear markets, passive income schemes provide investors and traders the opportunity to generate money. For individuals who invest in Ethereum or cryptocurrencies in general, passive crypto income provides a hedge against market crashes and declines.
What is Ethereum?
Ethereum is a blockchain-based decentralized network that runs smart contracts. There is no potential of fraud or tampering by a third party, as these apps execute precisely as planned. The primary token of Ethereum, Ether, enables users to perform a variety of operations on the network, including transactions, staking, trading, storing non fungible tokens (NFTs), playing games, and more.
Ethereum is also used to create decentralized applications (DApps), which are open-source blockchain-based programs. On Ethereum’s network, anyone with the necessary skills and knowledge can create DApps, making it one of the most popular platforms for developers.
Historically, Ethereum utilized a proof-of-work (PoW) consensus process, which rewarded miners for confirming transaction blocks. On September 15, 2022, at 1:42:42 a.m. EST, Ethereum transitioned to the proof-of-stake (PoS) consensus mechanism.
How to Earn Passive Crypto Income?
Staking is the act of locking funds on a Proof-of-Stake (PoS) blockchain (such as Ethereum) in order to validate transactions and gain rewards. When users stake their ETH, they are essentially putting their money where their mouth is and contributing to the network’s security. In exchange for their efforts, speculators are rewarded with ETH or other tokens.
Staking Ethereum is a popular strategy to get passive income from cryptocurrencies, but it may be too pricey for novice investors. To operate a full validator node and participate in staking, the new PoS version of Ethereum requires at least 32 ETH, or around $50,000.
In addition to direct staking, one can utilize service providers such as ProEX. ProEX provide Ethereum staking services without requiring network participants to maintain a full node, allowing them to stake with little funds.
Should you stake your token now?
If you own a cryptocurrency that uses a proof of stake blockchain, you are eligible to stake your tokens.
As of November 2022, the cryptocurrency exchange ProEX offers an Annual Percentage Yield (APY) of 2.2% for staking Ethereum (ETH).
Once you’ve decided to stake cryptocurrency, you’ll get the promised return when it’s due. You will receive your return from the program in the staked cryptocurrency, which you may then hold as an investment, offer for staking, or exchange for cash and other cryptocurrencies.
Why stake with ProEX?
ProEX is the world’s leading multi-contract trading platform, provides bitcoin and various cryptocurrencies, perpetual contract trading, ETF and other digital asset trading functions, Staking Pool services.
ProEX is committed to creating a better trading environment for our clients, ProEX has got MSB certificate（Money Services Business) from the United States and Canada, the USA MSB license was issued by FinCEN after being rigorously reviewed by the Financial Crimes Enforcement Bureau, an agency of the US Department of the Treasury.
Simple Steps to Stake with ProEX
1. Sign up and register an account on ProEX
2. Click on “Balances” then “Deposit” on the “Asset Overview” page.
3. Choose “USDT” under “Coins”, and choose “Omni” for “Chain name”. You will see the wallet address and QRCode address fully displayed to complete the opening of your USDT Omni deposit wallet
4. After you have opened your USDT Omni wallet address, return to the homepage and hover over “Investment” and click “savings”
5. Click on “Savings Account” and click on “Subscribe”
6. After filling in the subscription amount, click “Confirm Subscription,” and the screen of completed subscription will pop up
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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.