In the world of cryptocurrency, there are numerous ways to earn passive income, including staking and cloud mining. Both methods offer various benefits and risks for investors.
What is Cloud Mining?
Cloud mining allows users to rent mining capabilities for cryptocurrencies without owning physical equipment. This method is primarily used for mining Proof-of-Work cryptocurrencies like Bitcoin and Litecoin.
What is Staking?
Staking involves participating in a blockchain network by locking up a certain amount of cryptocurrency to support its security and operations. In return, stakers receive rewards for their contributions.
Comparison: Staking vs. Cloud Mining
Staking is considered a more stable and less energy-intensive method of passive income compared to cloud mining, which incurs high energy costs and is prone to scams. It offers users more predictable returns and lower risks.
By 2025, staking is becoming the preferred choice for investors thanks to its stability, safety, and energy efficiency, while cloud mining is facing profitability challenges.
