Economy
Staking as a Passive Trading Strategy: Unlocking Steady Crypto Earnings
Introduction
In the world of cryptocurrency, staking has emerged as one of the most popular and accessible ways for investors to earn passive income. Unlike traditional trading, where the value of assets can fluctuate wildly in a single day, staking provides a more stable and predictable form of income. Staking involves holding a specific cryptocurrency in a wallet to support the operations of a blockchain network. In return, participants earn rewards in the form of additional cryptocurrency. As the crypto market evolves, staking has gained traction as a low-effort, passive trading strategy, appealing to both new and seasoned investors.
In this article, we will delve into staking as a passive trading strategy, exploring how it works, its benefits and drawbacks, and the various considerations for investors. With the potential for steady earnings and portfolio diversification, staking offers a unique avenue for those looking to optimize their crypto holdings.
What is Staking?
H2: Understanding the Basics of Staking
Staking is the process of participating in a blockchain network by holding a certain amount of cryptocurrency to support network operations. Stakers contribute to securing the network, validating transactions, and in some cases, creating new blocks. In proof-of-stake (PoS) and delegated proof-of-stake (DPoS) systems, staking replaces the energy-intensive mining process seen in proof-of-work (PoW) blockchains like Bitcoin.
By staking their assets, users help maintain the stability of the network while earning rewards as compensation. The amount of cryptocurrency staked often determines the level of influence or participation in the network’s validation process.
H3: How Staking Rewards Are Calculated
The rewards for staking depend on several factors, including:
- Amount Staked: The more you stake, the higher your potential rewards.
- Network Inflation: Some blockchains inflate their supply to distribute staking rewards.
- Duration of Stake: Certain networks offer higher rewards for longer staking periods.
- Overall Network Staking Ratio: If a large portion of the network’s currency is staked, individual rewards may be lower.
Benefits of Staking as a Passive Trading Strategy
H2: Advantages of Staking
Staking provides a variety of benefits for investors looking to earn passive income. Here are some of the primary advantages:
- Consistent Passive Income: Unlike volatile trading, staking provides a steady source of income, with rewards paid periodically.
- Eco-Friendly: Staking is energy-efficient compared to mining in PoW systems, which require extensive energy usage.
- Support for Blockchain Networks: By staking, investors play a role in securing the network, thereby contributing to the stability and decentralization of the blockchain ecosystem.
- Low Entry Barrier: Staking does not require advanced technical knowledge or expensive equipment, making it accessible to most crypto holders.
H3: Portfolio Diversification
Staking allows investors to diversify their portfolio by adding different staking assets, spreading risk across various projects. This approach can reduce volatility and create a more balanced investment strategy.
Risks and Challenges of Staking
H2: Drawbacks of Staking
While staking has numerous benefits, it is not without its challenges. Below are some of the key risks associated with staking:
Market Volatility: Although staking rewards may seem stable, the underlying asset’s value can fluctuate, impacting the actual return on investment.
Lock-Up Periods: Some blockchains require stakers to lock up their assets for a set period, during which they cannot access or trade their funds.
Slashing Penalties: Certain networks impose penalties, known as slashing, for validator misbehavior. Stakers may lose a portion of their staked assets if the validator fails to comply with network rules.
Inflationary Pressures: Some networks distribute staking rewards by inflating their supply, which could dilute the value of the token over time.
H3: Lack of Liquidity
Staked assets may lack liquidity, especially during lock-up periods. If the market takes a downturn, stakers might be unable to sell their holdings quickly, resulting in potential losses.
Different Staking Methods
H2: Popular Staking Methods for Investors
There are various ways to participate in staking, each with its pros and cons. Below are a few popular methods:
- Direct Staking: Investors stake their assets directly on a blockchain network by becoming validators.
- Delegated Staking: Investors delegate their tokens to a validator node. The validator takes care of technical requirements while the investor receives a portion of the rewards.
- Staking Pools: Staking pools allow users to combine their resources to maximize rewards. Pooling can help smaller investors earn rewards even if they don’t meet the minimum staking requirements.
Key Considerations for Staking
H2: Factors to Evaluate Before Staking
Before diving into staking, investors should carefully consider the following:
- Staking Yields: Evaluate the reward rate offered and compare it with potential inflation on the network.
- Staking Period: Be mindful of the lock-up period and whether the network offers flexible options for early withdrawal.
- Reputation of Validators: When choosing a validator, consider their reputation, fee structure, and history of slashing events.
- Platform Security: Ensure that the platform or wallet used for staking has strong security measures to prevent unauthorized access.
H3: Tools and Resources for Effective Staking
Platforms like Nearest Edge offer tools and insights to optimize staking strategies, providing traders with the necessary data to make informed staking decisions.
Staking Case Studies
Many investors have found success through staking, particularly during market upswings. For example, Ethereum 2.0 staking has attracted significant interest as it prepares to transition from PoW to PoS, offering attractive returns for ETH holders who choose to stake.
Another example is Cardano (ADA), which has gained popularity due to its unique approach to staking and user-friendly wallet options. Both Ethereum and Cardano highlight the advantages of staking for long-term investors focused on capital appreciation and passive income.
FAQ Section
H2: Frequently Asked Questions (FAQ) on Staking
H3: 1. What is staking in crypto? Staking is the process of holding crypto in a wallet to support a blockchain network and earn rewards.
H3: 2. How much can I earn through staking? Earnings vary based on factors like the amount staked, duration, and network inflation. Yields generally range between 4% and 20% annually.
H3: 3. Are there risks involved in staking? Yes, risks include market volatility, slashing penalties, lock-up periods, and liquidity constraints.
H3: 4. Do I need technical knowledge to stake? No, many staking platforms make it easy for beginners. Delegated staking and staking pools are especially user-friendly.
H3: 5. Is staking the same as mining? No, staking is a different consensus mechanism. Mining requires significant energy use, while staking does not.
H3: 6. What is a lock-up period? Some networks require staked funds to be locked for a specified time, limiting access during this period.
H3: 7. Can I stake multiple cryptocurrencies? Yes, depending on the network and platform, you can stake various cryptocurrencies simultaneously.
H3: 8. What are staking rewards based on? Rewards depend on the network’s design, including the staked amount, duration, and market conditions.
H3: 9. Are staking rewards taxed? Yes, staking rewards may be subject to taxation. Consult with a tax professional for guidance.
H3: 10. What are the best tools for staking? Platforms like Nearest Edge offer tools to track staking returns and monitor market trends.
Conclusion
Staking is a highly effective passive income strategy in the crypto space, offering a consistent way to earn returns without constant monitoring. With several options, including direct staking, delegated staking, and staking pools, investors can choose a method that fits their risk tolerance and financial goals. However, it’s crucial to understand the potential risks involved, such as market volatility, liquidity issues, and slashing penalties.
As the DeFi ecosystem expands, staking will likely continue to grow in popularity, providing both novice and experienced traders with a valuable income-generating tool. Whether you’re seeking a low-maintenance strategy to grow your crypto portfolio or an eco-friendly alternative to mining, staking presents a compelling option in the crypto market.
By Adedapo Adesanya
President Bola Tinubu will, on Friday, present the 2026 Appropriation Bill to a joint session of the National Assembly.
The presentation, scheduled for 2:00 pm, was conveyed in a notice issued on Wednesday by the Office of the Clerk to the National Assembly.
According to the notice, all accredited persons are required to be at their duty posts by 11:00 am on the day of the presentation, as access into the National Assembly Complex will be restricted thereafter for security reasons.
The notice, signed by the Secretary, Human Resources and Staff Development, Mr Essien Eyo Essien, on behalf of the Clerk to the National Assembly, urged all concerned to ensure strict compliance with the arrangements ahead of the President’s budget presentation.
The 2026 budget is projected at N54.4 trillion, according to the approved 2026–2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
Meanwhile, President Tinubu has asked the National Assembly to repeal and re-enact the 2024 appropriation act in separate letters to the Senate and the House of Representatives on Wednesday and read during plenary by the presiding officers.
The bill was titled Appropriation (Repeal and Re-enactment Bill 2) 2024, involving a total proposed expenditure of N43.56 trillion.
In a letter dated December 16, 2025, the President said the bill seeks authorisation for the issuance of a total sum of N43.56 trillion from the Consolidated Revenue Fund of the Federation for the year ending December 31, 2025.
A breakdown of the proposed expenditure shows N1.74 trillion for statutory transfers, N8.27 trillion for debt service, N11.27 trillion for recurrent (non-debt) expenditure, and N22.28 trillion for capital expenditure and development fund contributions.
The President said the proposed legislation is aimed at ending the practice of running multiple budgets concurrently, while ensuring reasonable – indeed unprecedentedly high – capital performance rates on the 2024 and 2025 capital budgets.
He explained that the bill also provides a transparent and constitutionally grounded framework for consolidating and appropriating critical and time-sensitive expenditures undertaken in response to emergency situations, national security concerns, and other urgent needs.
President Tinubu added that the bill strengthens fiscal discipline and accountability by mandating that funds be released strictly for purposes approved by the National Assembly, restricting virement without prior legislative approval, and setting conditions for corrigenda in cases of genuine implementation errors.
The bill, which passed first and second reading in the House of Representatives, has been referred to the Committee on Appropriations for further legislative action.
By Adedapo Adesanya
The federal government has imposed an immediate nationwide ban on the export of wood and allied products, revoking all previously issued licenses and permits to exporters.
The announcement was made on Wednesday by the Minister of Environment, Mr Balarabe Lawal, during the 18th meeting of the National Council on Environment in Katsina State.
Mr Lawal said the directive, outlined in the Presidential Executive Order titled Presidential Executive Order on the Prohibition of Exportation of Wood and Allied Products, 2025, became necessary to curb illegal logging and deforestation across the country.
“Nigeria’s forests are central to environmental sustainability, providing clean air and water, supporting livelihoods, conserving biodiversity, and mitigating the effects of climate change,” the Minister said, warning that the continued exportation of wood threatens these benefits and the long-term health of the environment.
The order, published in the Extraordinary Federal Republic of Nigeria Official Gazette No. 180, Vol. 112 of 16 October 2025, relies on Sections 17(2) and 20 of the 1999 Constitution (as amended), which empower the state to protect the environment, forests, and wildlife and prevent the exploitation of natural resources for private gain.
Under the new policy, security agencies and relevant ministries are expected to enforce a total clampdown on illegal logging activities nationwide.
On his part, the Katsina State Deputy Governor, Mr Faruk Lawal Jobe highlighted the state’s history of pioneering socio-economic policies that have influenced national policy. He emphasized the importance of collaboration in addressing environmental challenges across the country.
“Environmental sustainability is critical to achieving growth and improving the quality of life of our people,” he said. “Our administration has prioritised initiatives aimed at combating desertification and promoting afforestation.”
The ban reflects the government’s commitment to safeguarding Nigeria’s shrinking forest cover and addressing climate change, while ensuring sustainable use of natural resources for future generations.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.24 per cent on Wednesday, December 17, pulling the Unlisted Security Index (NSI) up by 8.62 points to 3,614.64 points from 3,606.02 points.
In the same vein, the market capitalisation added N4.72 billion to close at N2.164 billion compared with the N2.160 trillion it ended on Tuesday.
The growth was inspired by four securities, which finished on the gainers’ log, neutralising the losses printed by two other securities on the trading platform.
MRS Oil Plc gained N17.90 on Wednesday to end at N196.90 per unit versus N179.00 per unit, NASD Plc appreciated by 59 Kobo to N58.50 per share from N57.91 per share, FrieslandCampina Wamco Nigeria Plc added 15 Kobo to sell at N60.19 per unit versus N60.04 per unit, and Industrial and General Insurance (IGI) Plc rose by 6 Kobo to 64 Kobo per share from 58 Kobo per share.
On the flip side, Golden Capital Plc extended its loss by 76 Kobo to end at N7.75 per unit versus N8.51 per unit, and Central Securities Clearing System (CSCS) Plc slipped by 35 Kobo to N39.65 per share from N40.00 per share.
Yesterday, the volume of transactions increased by 737.3 per cent to 20.4 million units from 2.4 million units, but the value of trades fell by 33.8 per cent to N72.2 million from N109.1 million, and the number of deals slid by 62.5 per cent to 21 deals from 56 deals.
Infrastructure Credit Guarantee Company (InfraCredit) Plc remained the most traded stock by value on a year-to-date basis with 5.8 billion units sold for N16.4 billion, the second position was occupied by Okitipupa Plc with 178.9 million units transacted for N9.5 billion, and the third place was taken by MRS Oil Plc with 36.1 million units worth N4.9 billion.
InfraCredit Plc was also the most traded stock by volume on a year-to-date basis with 5.8 billion units traded for N16.4 billion, followed by IGI Plc with 1.2 billion units valued at N420.7 million, and Impresit Bakolori Plc with 536.9 million units worth N524.9 million.
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