How to Make Money Staking Tokens and USDT: A Complete Guide
Staking is one of the most popular ways to earn passive income in cryptocurrency. It allows you to earn income by locking assets on a crypto network or exchange platform like Binance. But it’s worth knowing that there’s a difference between staking tokens (e.g. ETH, BNB, SOL) and staking stablecoins like USDT. In this article, we’ll look at how each option works, what the pros and cons are, and how to choose the best option for you.
What is staking and how does it work?
Staking is the process of locking up cryptocurrency to support the operation of the blockchain network and receive rewards. Most often, this applies to coins that operate on the Proof-of-Stake (PoS) algorithm or its variations. Staking allows you to earn cryptocurrency in a similar way to deposits in a bank, where you receive interest for holding funds.
Binance offers several types of staking:
• Fixed staking – you lock assets for a specific period (e.g. 30, 60 or 90 days) with higher interest rates.
• Flexible staking – you can withdraw funds at any time, but the interest will be lower.
• DeFi staking – using decentralized platforms to generate income.
Staking in tokens (BNB, ETH, SOL and others)
How does token staking work?
When you stake tokens, you are actually helping the network run. In PoS networks, nodes confirm transactions and provide security. In return, users are rewarded in the same cryptocurrency.
Example of profitability:
• BNB – 3-5% per annum
• Ethereum (ETH) – 3-6%
• Solana (SOL) – 5-8%
Advantages of staking tokens:
✅ High interest rates compared to stablecoins.
✅ Additional profit from the increase in the token price. If the token increases in price, your income increases.
✅ Support the blockchain ecosystem. You help the network work and get rewarded.
Cons:
❌ Risk of falling token price. If the rate drops, your reward may not compensate for your losses.
❌ Time lockup (blocking of assets). Some platforms do not allow instant withdrawal of funds.
❌ Minimum amounts for staking. For example, Ethereum requires a minimum of 32 ETH for direct staking.
Staking in USDT and other stablecoins
How does it work?
USDT and other stablecoins are not used to validate the blockchain network, so there is no traditional staking like in PoS tokens. However, they can generate income through lending or farming mechanisms.
You can stake USDT in flexible or fixed deposits on Binance Earn or participate in DeFi staking.
Example of profitability:
• USDT (Binance Earn flexible deposit) – 1-3% per annum
• USDT (DeFi staking) – 5-10% (depending on the platform)
Pros of USDT staking:
✅ Stability. There is no risk of volatility because USDT is pegged to the dollar.
✅ Higher liquidity. You can withdraw funds quickly.
✅ Easy entry. The minimum amount for participation is much lower than in PoS tokens.
Cons:
❌ Low interest rates compared to token staking.
❌ Platform risk. If you use DeFi staking or landing, there is a risk of the platform being hacked.
❌ Decentralization. In the case of DeFi staking, your funds may be blocked due to failures in smart contracts.
What to choose: staking in tokens or USDT?
The choice depends on your risk profile and investment goals.
• If you are willing to accept the risk of volatility for the sake of higher interest rates, it is better to choose token staking.
• If you are looking for safe passive income without the risk of depreciation, staking in USDT would be a better option.
• You can combine both approaches: stake part of the funds in tokens for potential profit, and part in USDT for stability.
Conclusions
Staking is a great way to earn passive income in cryptocurrency, but it has its own quirks. PoS tokens like BNB or ETH can yield higher returns but are prone to volatility. USDT provides stability but has a lower yield. The best strategy is to combine these options wisely to maximize your earnings.
If you're just starting out, try flexible staking or fixed deposit on Binance Earn to see which option suits you best.$BNB
