How to Use Crypto Staking to Earn Passive Income in Australia: A Beginner’s Guide
If you’re looking for ways to earn passive income with your crypto holdings in Australia, staking is one of the most popular and accessible methods. Unlike trading, staking lets you earn rewards simply by holding and “locking up” certain cryptocurrencies, helping secure the blockchain network.
Here’s how crypto staking works and how you can get started in Australia in 2025.
What Is Crypto Staking?
Staking involves participating in a proof-of-stake (PoS) or similar blockchain consensus mechanism by locking your crypto tokens to support network operations like transaction validation and security. In return, you receive staking rewards—usually paid in the same cryptocurrency.
This contrasts with proof-of-work (PoW) blockchains like Bitcoin, which require energy-intensive mining.
Popular Cryptos to Stake in Australia
Some of the most commonly staked cryptocurrencies include:
Ethereum 2.0 (ETH): The shift from PoW to PoS allows ETH holders to stake and earn rewards.
Cardano (ADA): Offers flexible staking with no minimum amount and competitive returns.
Polkadot (DOT): Supports staking with nomination and governance rights.
Solana (SOL): High-speed blockchain with staking rewards for delegators.
How to Stake Crypto in Australia
Choose a Platform
You can stake via exchanges like BitMart, which offer simple staking services with no technical setup, or use dedicated wallets that support staking.
Deposit Your Tokens
Transfer your tokens to the staking platform or wallet.
Delegate or Lock Up Your Tokens
Depending on the blockchain, you either delegate your stake to a validator or lock your tokens in a staking pool.
Earn Rewards
Rewards accumulate over time, often paid daily, weekly, or monthly.
Benefits of Crypto Staking
Passive income: Earn rewards without active trading.
Network support: Help secure blockchain networks and contribute to decentralization.
Compound gains: Reinvest rewards to grow your holdings.
Risks to Consider
Lock-up periods: Some staking requires you to lock your tokens for days or weeks, limiting liquidity.
Validator risks: Poor validator performance can reduce rewards or cause penalties (slashing).
Market volatility: Crypto prices can fluctuate, impacting overall returns.
Tax Implications in Australia
Staking rewards are treated as ordinary income by the Australian Taxation Office (ATO) and must be reported. Keep detailed records of rewards received and the dates for accurate tax reporting.
Final Tips for Australian Beginners
Start with small amounts and trusted platforms like BitMart.
Understand the specific staking rules and lock-up periods for your chosen crypto.
Keep track of your rewards and report them for tax compliance.
Ready to start earning passive income with staking? Check out BitMart’s easy staking services designed for Aussie investors.
