How to Stake Bitcoin (BTC)?

Bitcoin is the crypto king and, logically, investors would look for ways to get extra income from their holdings. But can you stake Bitcoin?

Unfortunately, Bitcoin doesn't offer staking in the traditional sense. But this doesn't imply that you are unable to acquire additional BTC tokens! We will look at various ways to generate returns on your Bitcoin and cover crypto assets you could actually stake.

What is Staking?

Staking is the procedure associated with Proof-of-Stake blockchain networks. It involves keeping your assets locked for a set period to validate transactions and secure the network. In return, it provides rewards proportional to your stake.

Bitcoin staking is the process of locking up BTC and acquiring extra tokens as rewards. Crypto staking means committing not to trade or sell tokens for a predetermined time. This method is quite popular among long-term investors.

Can You Stake Bitcoin?

Given Bitcoin's popularity, most people aim to stake it in hopes of growing their holdings. But is it truly possible? You can’t stake Bitcoin as it doesn’t employ the Proof-of-Stake mechanism. Bitcoin uses Proof-of-Work instead of PoS, where miners compete to solve complex puzzles for transaction verification and rewards.

Since staking doesn't apply to Bitcoin, here’s an overview of how to stake crypto:

• Choose a Staking-Friendly Crypto
• Select a Staking Platform
• Transfer Your Crypto to the Platform
• Stake Your Crypto
• Monitor and Earn Rewards

Ways To Earn Passive Income On Bitcoin

While Bitcoin holders cannot receive extra income through staking, there are still other methods to get extra income with BTC tokens. The most popular ways include:

• Crypto Lending: Different platforms allow you to lend your BTC tokens and receive interest in return. It's similar to traditional finance lending but with increased profit potential. However, there can be a risk of the borrower defaulting on the loan.
• DeFi: Depositing BTC allows you to join in liquidity pools to foster trading among users while earning fees.
• Mining: As was stated, mining allows users to compete in solving complex math problems to get more BTC. But it requires expensive hardware and affects electricity bills.
• Cloud Mining Services: Such services rent mining hardware, so you can get into BTC mining without maintenance costs and upfront investment. But it’s highly important to be cautious and do research since some of these services might be fraud.
• Interest Accounts: Certain crypto exchanges provide interest accounts that allow you to deposit your BTC for interest. It is essentially a sort of lending, but the platform handles the entire procedure for you. Despite the lower rates, there is reduced risk compared to lending.

Having a viewership also enables you to join a Bitcoin affiliate program.

Which Cryptocurrencies You Can Stake Instead Of Bitcoin

If you're still keen on gaining rewards through staking, try these popular cryptocurrencies as alternatives to Bitcoin:

• Ethereum: ETH ranked second by market cap and you can easily stake it on Cryptomus.
• Cardano: This rapidly growing crypto uses the PoS mechanism and offers competitive returns.
• Solana: Known for its blazing transaction speeds, Solana allows you to gain extra coins through staking.
• Cosmos ATOM focuses on scalability and interoperability and it can be staked on multiple crypto platforms.

These were just a few examples, and there are many other tokens available for staking. Note that each cryptocurrency has its own stacking requirements, rewards, and risks. For this reason, ensure to research any crypto project before you stake your assets. It's also advisable to gain further knowledge on staking.

FAQ

Can You Stake Bitcoin on Coinbase?

No, you can’t stake Bitcoin on Coinbase since it uses PoW mechanism. Nevertheless, the platform offers staking services for PoS coins.

Can You Stake Bitcoin on Ledger?

Bitcoin cannot be staked on Ledger because it uses Proof-of-Work instead of Proof-of-Stake. Ledger can be used for staking PoS-type tokens.

Can You Stake Bitcoin on Binance?

It's impossible to stake Bitcoin on Binance because BTC is not a Proof-of-Stake type. But feel free to stake other coins offered by the platform.

Now you know that Bitcoin does not support staking. But we’ve explored other methods you can use to gain rewards with your BTC holdings. And for those who still want to try staking, we’ve included some popular tokens to do it with.

We hope our guide was helpful. Please leave your questions and thoughts in the comments!