--- title: 'How to Earn Passive Income with Cryptocurrency Staking' source: 'https://youtube.com/watch?v=PPOZ224qOIs' video_id: 'PPOZ224qOIs' date: 2026-07-12 duration_sec: 1378 --- # How to Earn Passive Income with Cryptocurrency Staking > Source: [How to Earn Passive Income with Cryptocurrency Staking](https://youtube.com/watch?v=PPOZ224qOIs) ## Summary This video explains how to generate passive income through cryptocurrency staking, focusing on the Proof of Stake system. It provides a step-by-step tutorial on using Bybit exchange to stake various cryptocurrencies, emphasizing the importance of choosing solid projects over high APY. ### Key Points - **What is Staking** [00:02] — Staking involves locking cryptocurrencies in an exchange or wallet to help networks like Ethereum or Solana function, earning rewards in return. - **Proof of Work vs Proof of Stake** [01:34] — Proof of Work (Bitcoin) uses energy-intensive mining; Proof of Stake (Ethereum, Solana) selects validators based on coins held, being more efficient and accessible. - **Why Staking Pays** [02:27] — Staking helps validate transactions, secure the network, and create new digital money. Rewards are paid in the same cryptocurrency. - **Staking on Bybit** [03:57] — Bybit offers stable products (savings, on-chain earn) with guaranteed returns, and advanced products (liquidity mining) with variable returns. - **Bybit Earn Interface** [05:58] — The Earn tab shows coins, APR, and terms (flexible or fixed). Flexible allows withdrawal anytime; fixed locks funds for a period. - **High APY Trap** [11:37] — High APY (e.g., 99%) may come from risky coins that lose value. It's crucial to evaluate the project's fundamentals, not just the yield. - **Practical Staking Demo** [14:57] — The presenter stakes 21 Solana in flexible on-chain earn for 5% APY, showing daily rewards and how to redeem. - **Staking Strategy** [18:59] — Buy cryptocurrencies you believe in, stake flexibly during uncertainty, and use fixed terms when market is bullish. Staking is for long-term holders. - **Spending Staking Rewards** [20:10] — Rewards can be converted to fiat and withdrawn, or spent directly using the Bybit Mastercard debit card. ### Conclusion Staking is a recommended way to earn passive income on cryptocurrencies you already plan to hold, but it's not a get-rich-quick scheme. Always choose projects with strong fundamentals and consider market conditions. ## Transcript want, but few of us know how to create. That's why today I'm going to talk to you about a way to generate passive income just by investing in cryptocurrencies. So let's go. Staking involves leaving your cryptocurrencies locked in an exchange, wallet, or platform to help a network like Ethereum or Solana function properly. And by doing this, you receive more cryptocurrency as a reward. Imagine it like this. If you invest $1,000 in a crypto, decide not to sell it, keep it and stake it, your money will remain locked and the network will pay you for this. In other words, you get paid just for owning or investing in cryptocurrencies. It's like investing in a fixed-term deposit, but in the crypto world. Now, why am I getting paid? To understand it properly, we first need to talk about how money works in a centralized system and how it works in a decentralized one. In the traditional world, money passes through banks, which validate, approve, record, and control all certain amount of money, pay by card, or make a transaction, the banks are the ones who authorize and control all of this. This is a centralized system because transactions. However, in a decentralized system like that of cryptocurrencies, there are no banks. computers and people spread throughout the world who help to make everything work in order. And just as banks charge fees, in the crypto world, validating transactions isn't free, and that's why you get paid. Now, in cryptocurrencies there are several systems to validate transactions. The two most common are mining, or better known as proof of work, and number two, staking, or better known as proof of stake. Proof of work is the system that Bitcoin uses. Here, transactions are validated through mining, which is using powerful computers to solve complex mathematical problems. These are the large machines that you have surely seen at some point in your life. This model uses a lot of energy, requires a lot of hardware, and not just anyone can do it. Examples of cryptocurrencies that use this system are Bitcoin, Litecoin, and Monero. However, Proof of Stake, or staking as it is popularly known, is a chooses transaction validators based on the amount of coins they hold. This is a more efficient, ecological and accessible system where anyone can participate. Examples of cryptocurrencies that use this system are Ethereum since 2022, Solana, Cardano, and Polcadot. When you stake, you are locking up your cryptocurrencies for the network to use as collateral. And this process mainly helps with three things. Number one, to validate new transactions. Number two, to keep the network secure, and number three, to create new digital money. In conclusion, you get paid because you're helping the system work without the need for banks, and like any useful work, it has a reward. However, the amount of money you are paid varies depending on the cryptocurrency, but the payment will always be in that same cryptocurrency. In other words, for example, buying Solana won't give you dollars, it will give you more Solanas, which you can obviously then exchange for the point is that the return comes in the form of the cryptocurrency itself. And to do staking you absolutely have to have the cryptocurrencies. There is withdraw your money until a certain period ends, and there is also flexible staking where you can withdraw it at any time, but obviously this one pays less. Now, if you want to learn more about how cryptocurrencies work from scratch, if you have more questions, or if it wasn't entirely clear, I recommend you watch this video on my YouTube channel, where I explain everything about cryptocurrencies from the ground up. And if you've made it this far in the video, comment with the coin emoji so I know you're interested in investing and making money with cryptocurrencies. Now, let's get to the important part: how to stake. There are several ways, but today we'll do it the simplest way. On an exchange, that is, on a platform for buying and selling cryptocurrencies. There are many on the market, but today we're going to use Bybit, which is one of the largest in the world. Now then , without further ado, let's use the staking platform. Now, first thing to do is go to our exchange's website , which in this case is bybit.com. First of all, I want you to know that if you've never bought cryptocurrency or video on how to buy cryptocurrencies from scratch and how to create an account, which I 'll leave in the description. Following that, I'm also going to leave you the link to my personalized Bybit registration so you can get a benefit whenever you 're watching this video. The benefit can be 10, 20, 30, 40, 50 or up to $100 just for depositing when you are watching this video. So if you're lucky, you might make Now then, let's proceed with the tutorial. The first thing I want to show you is how to The first thing I want to show you is how to important part is that here on the Bybit website you're seeing on screen, we can select crypto purchase and there are several options, but in this case we're going to choose fiat deposit, which is practically depositing money in our national currency, it can be Mexican peso, US dollar or the national currency of your country, depending on where you are watching this video. Here case of Mexico, we can make a transfer directly to Bank Transfer Spay, that is, we can deposit from any bank we have in Mexico directly to our Bybit account. We will receive our money in convert it into another cryptocurrency. Similarly, we will be able to sell a cryptocurrency and withdraw our money in Mexican pesos via a bank transfer. I wanted to show you that, even though it's very brief, only because I think that before thinking about how to earn more money, it's important to know earnings. So, I want to show you this just for that reason. Now staking and we already know these basic principles, we'll go to the finance tab and the earn button. Here you will see this Bybit earn tab where we can generate returns simply by holding cryptocurrencies. You'll be able to see many things. Let's take it one step at a time . I want you to know that in the staking section there are two specific products, the stable ones and the advanced ones. Stable products include, for example, Bybit savings or onchain earn, which essentially means that you leave your money here on the platform and Bybit, as if it were a bank, lends your money and generates returns on it. And in the case of Onchain Earn, it's about directly staking, but you don't do it yourself; rather, you give your money to Bybit, Bybit does the staking and gives it back to you in the form of returns. On the other hand, advanced products are more like liquidity mining, dual asset, double smart leverage, and wealth management. There is a big difference between advanced and stable versions, and that difference is guaranteed performance. In stable products such as savings and on-chain, performance is already generate in a certain fixed period of time . On the other hand, in the advanced version you won't have a warranty and the performance may be higher or lower depending on multiple factors. Today I'm not going to focus on the you can make is in something you don't know. Warren Buffett said that, and I today I just want to teach you the basics so you understand how it works. And if you're already interested once you understand the basics, I can make understand how it works, but you'll decide that with the comments. So if you want to learn more about cryptocurrencies or these comment and we'll make a video about it . Now in the Bybit Earn section you will be able to see everything. This screen you're seeing here brings together stable, and is divided into several columns. For example, there's the coin column. For example, these are the currencies we can use to generate returns. Solana, USDT, Bitcoin, USDC. Let's remember that USDT and USDC are pegged to the dollar and are known as stablecoins. While cryptocurrency. Bitcoin is the largest, and Solana is another cryptocurrency that is also one of the big ones, but not as big as Bitcoin. Now, the APR part means the annual return we can get. For example, if I open flexible savings and fixed term deposits. These are the returns we have. And pay attention here, this is very important, these are annual returns. APRS annual percentage rate, which is the annual return we are going to get. For example, it says here that it's a flexible savings plan. And how do I know it's flexible savings, but it also has a duration here, it says flexible and down here, for example, it says from 7 to 60 days. So, by leaving my Solana in a by leaving my Solana in a flexible savings account, I will generate a 1.08% annual return, while if I leave it for 7 to 60 days it can generate leave it for 7 to 60 days it can generate 4% or 5% annually. If you look, it says here that they are stable, right? Therefore, the advanced ones can generate more or less performance. The truth is, these products are a little more difficult to understand, and the large, but they aren't really like that once you understand them. So, don't bottom you can also see how much you can generate and whether it is fixed or flexible. Let's go directly to the two stable products now to explain them to you in Bybit savings, which as I told you, Bybit generates this money by doing the transactions on the platform, such as lending money to traders, providing liquidity, etc., and it generates those returns for you. Below you will be able to see all the available offers and you can divide them, for example, by flexible term or fixed term or if you want to see them all by currency. So, for example, here I can go to the Bitcoin section and see that there are two. There's Bitcoin, which generates 4% annually, which is a fixed 7-day rate, and be aware, it already yield pulls are filling up. For example, at the top you can see that USDC, which remember is the 1. dollar parity, generates 12% annually, but there is a this is filled, this return will no longer be available. So that's why we also need to take action if we've already decided on a certain type of performance. Now in this part you can see that flexible Bitcoin pays 2.30% but it has an orange color. This is because it has a number of special characteristics. For example, I select it here and you can see that, for example, if you have 0.003 bitcoins, you generate 2.30% annually. But if you have more than 0.003 bitcoins, the remainder will only generate So, this is very similar to what happens, for example, in Mexico or in case of Mexico, with the Nu account, they tell you, "Hey, your money will generate 15% annually, but only the first 25,000 pesos." The rest, another interest rate, well, it's exactly the same. Here, the first 0.003 bitcoins generate 2.30% annually, and the rest less. Now, this is, for example, so that you understand the offers, this is flexible, you could take it out at any time and this has a deadline, you couldn't take it out within that deadline which is 7 days. Something very important to returns from a cryptocurrency, we necessarily have to own that cryptocurrency. 4% return on Bitcoin, I have to already have bitcoins or this 2.30%. For example, if I choose to make a deposit now, in this case I don't have enough bitcoins. Here you can see my balance, which is too small to be able to do wanted to, I would have to buy the Bitcoin and then come and make the return. Now, here are many offers and as you can see, there are 23 pages where there is something very interesting. You can see huge returns like 390% or we can find a cryptocurrency that says 99%. And you might say, "Hey, why would I invest in Bitcoin when it only generates 4% annually?" And this one generates a 99% annual return for me. It's quite simple, and it's because of which cryptocurrency you're generating the returns in. Let's remember one thing: staking or generating returns generates returns in that same cryptocurrency. In other words, if I do, for example, staking of Solana, I will receive returns in Solana. If I do, for example, Buy bit earn in elde, I will receive returns in ele. And if I do by bit Earn in Bitcoin, I will receive returns in Bitcoin. to understand because, for example, Elderglade is a cryptocurrency you probably don't know, and seeing a 99% return might sound attractive. But I was able to completely free website that I highly recommend for analyzing cryptocurrencies, search for that particular cryptocurrency, Elderglade, and notice that in recent years , well, this year it hasn't done well at all. For example, in the last 7 days it has lost 23% of its value. So this is very important because, what good is it to generate, for example, a 99% annual return if the cryptocurrency is going to be losing value during that time? That's why the staking aspect isn't just about the going to stake just because it generates 99% or because it generates more, the project catches your attention. My vision is to money. But I'm not going to invest in a project just because of how much money it can returns will be in that project, and if the project isn't good, then its we look back at Bitcoin on Coin Market Cap, we can see that Bitcoin this week remained more or less stable, despite experiencing some volatility. The price started very similar to how it ended, although slightly higher, and it grew over a longer period of time; for example, it grew in a year. for a year, even though it would have generated less return, the price of Bitcoin would have risen and my returns would be worth more, because the returns are in the same cryptocurrency. So, it's not just about which one makes you the most money; that's not really what's important. The important thing is what you're going to solid and that the project itself grows in value. That's super important to understand. And now we move on to the other product that Bybit also has, which is repeat, the difference here is that you do staking, and in the other one it was the to us is generating returns, but I'm explaining everything so you understand what you're putting your money into. Now, here you'll find different offers and even different cryptocurrencies. For example, you'll find other offers for Bitcoin, Ethereum, USDT, Ton, Solana, and so on. So, it works practically the same here. It's just a matter of looking at pay you and what coins you have so you understand how it works. Here you can see estimated duration and what currencies are available. Once you understand this basic part, let's move on to the practical part, which is how to do staking. As I cryptocurrency you want to stake. So, I'm going to go to the assets section and see what cryptocurrencies I have. For example, here I have $4,135, I have 21 solanas and practically $0,000 in USDT. So, these are the cryptocurrencies I can stake or generate returns on some other type of cryptocurrency, I would have to exchange my USDT or my Solana for that cryptocurrency and then generate the returns. Now let's do the exercise. I'll go back and check out the was just looking at and I liked Solana's Onchain Earn offer, which is this one here; it's flexible. And here I can select staking and I can see that it generates a 5% return for me. So, here I can put my 21 solanas or as many solanas as I want. It will generate 5% annually for me. And here you can see how much it will generate for me daily. In this case it tells you 0.0029 solanas. So you'll be able to receive that money at any time, every day, and you can withdraw it whenever you , that's also possible, but obviously you won't generate any passes you will be receiving those earnings. So here, for example, earnings. So here, for example, I can put as staking. I understand and confirm. And now I can see my orders. And here I don't love how it appears, it looks a little complex, but if you want to understand it more easily, you can go directly to, for example, the assets section. And here you'll see how everything you have and you can go, for example, to earn products. Ethereum, it was for an exercise and I can by bit and earn on chain section, right? So here it says, "Hey, you have 21 Solanas, which is like $3,000. I haven't earned anything yet, and these are receive. How do I withdraw it? How do I redeem it?" I can put it here, literally going to do it. In this case I won't receive any return, but it's so you understand how the platform works. I redeem, I select the product, which in this case is this one. I confirm, I'll redeem now and that's it. I'm going back now to my assets section. And if you look, I already have the Solana available again to buy, sell, exchange for another currency, withdraw, do whatever I want with it. Now we're going to do another test, example, now I'm going here to the onchain earn section or better yet, the byit savings section. Here I can go to the USDT section and see different terms. For example, here I see 2.70% for 14 days, 7% for 7 a deposit. Now in this case, I have 1,000, but let's do an get an estimated 7%, tells me how much I'm going to earn in the end because it has a deadline. And I put in, I've read the terms and obviously the more money I put in, the more money I'll generate, right? So I put 100, accept a deposit, and here comes a understand that the product cannot be refunded until it expires. I understand lasts for 7 days. I make a deposit now and that's it, the purchase is done and I go to my holdings and it appears again, for example, it says, "Hey, BBIT savings." If you look, it's not because of that Launcha Earn anymore, because I don't have any anymore. I have Ethereum, but where is the USDT? Fixed term deposit. I already had another one here for $1,500. Then this $100 was added. This is what I'm going to receive, and it's practically the return they're look here, the KG option doesn't appear because I have 7 days. So, that 's super important, just the timeframe you can tolerate to get your money. Something I want you to know is that this is only passive income, Keep in mind that this isn't a way to make a lot of money or a way that will practically give you thousands and thousands of dollars. It's really a way for your money, which you already have and which you already own in assets you like, to continue working and generating more value. My staking strategy is quite simple. I buy the cryptocurrencies that I analyze, that I like and that I see potential in, and those that I can I have in flexible staking so that they generate example, fixed, but that varies depending on the cycles I see. might be going up, then I do the staking, because I know it can go up in value and I can stop having those coins available for longer, but if uncertainty or I know that maybe it might go down, then I don't do it permanently so that coins if something really big happens. So, the most important thing about staking is not making a lot of money, but rather that the investments you already have are generating more money just by making a couple of clicks. It's literally making more money with what you 're already doing. One extra piece of information I want to tell you is, hey, well, how do I spend this money or these returns case, obviously they are, but if you have more money, you're going to be generating more. Well, it's quite simple, as I told you, you can withdraw your money in Fiat, that is, practically what you can do directly is this. Look, you can do directly is this. Look, I'm going to the Activus section the equivalent, I can do a conversion and I can So with this conversion I can transform these $900 into Mexican pesos and transfer this money with a fiat deposit to my bank account. And another way, in "Hey, look, I want to have that 900 or whatever amount of money in my account, because I know there might be opportunities in the market and I don't want to transfer it and there's the option, for example, with Bybit, which I thought was really cool. The Bybit Card is practically a debit card backed by Mastercard, which you can use to spend your cryptocurrencies at any store or online shop, but practically now, both in your country and internationally. the cryptocurrencies and the conversion is done automatically. So, that's one way you can spend your cryptocurrencies without actually taking them out into a bank account or withdrawing them from the platform. I think it's really cool because, for example, now that we're receiving profits from investments we start spending them here and save myself a lot of tedious processes. So, that was like an extra piece of information, but the important part of staking, I repeat, is that you choose projects not for their profitability, not how much staking they will give you or how much return they will give you, but rather because you have it long-term and it's a way in which you will continue to capitalize and there. And if you've made it this far in the so I know you like this content and want to invest seriously. So, the question is, do I recommend staking? The answer is yes. plan to hold them for a certain period of time, staking or get more out of them. The only important thing here is to check that the staking periods make sense and, above all, what stage of the market we are in. For example, when the market is cheap, it stake because you accumulate while the asset can continue to rise in value. However, when the market is very expensive, it can be less beneficial because even if you generate returns through staking, the cryptocurrency may decrease in value. Like everything else, this isn't a way to become a millionaire quickly. Leave that for active income or for the job or business you have. cryptocurrencies, I do think it's a good way to keep our money growing in assets we already trust. If you enjoyed this video or found it helpful, please leave a comment so we can create more content about cryptocurrencies. As always, it's a pleasure to serve you, and we'll see you always, it's a pleasure to serve you, and we'll see you soon in another video. Bye.