How to Stake Crypto for Passive Income Using Trust Wallet

Unlike traditional finance, which often generates little to no interest when you save, crypto staking offers a promising alternative for earning passive income. This is because savings accounts and traditional investments fail to outpace inflation with minimal returns.

However, cryptocurrency and blockchain technology have introduced new opportunities for individuals to grow their wealth through crypto staking on platforms like Trust Wallet.

Crypto staking is a process by which you hold and lock up your digital assets to support the operations of a blockchain network, allowing you to earn rewards as additional cryptocurrency.

Whether you are a seasoned crypto enthusiast or a newcomer eager to explore new financial opportunities, this guide will provide the knowledge and tools to start staking crypto and earning passive income on Trust Wallet. 

Categories of staking

Cryptocurrency staking is divided into two categories, namely:

Active crypto staking enables you to participate in a blockchain network by validating transactions and creating new blocks that earn token rewards when you delegate tokens to a validator node.

Passive crypto staking locks your tokens to a blockchain network to ensure their security and efficiency. Passively staking cryptocurrency is not time-consuming, but typically results in lesser token payouts than active engagement.

Types of crypto staking 

Staking cryptocurrency can be noncustodial or custodial. While noncustodial staking allows you to keep your staked coins in your digital wallet, custodial compels cryptocurrency holders to move their tokens to a staking platform.

Staking takes various forms, with each having a specialized function. Some of these types include: