Staking vs Mining: Which Is More Profitable in Today’s Crypto Market?

Back in March 2022, I was deep into Ethereum mining. At the time, mining was still a lucrative option. I had invested nearly $15,000 in mining rigs and electricity costs. For a while, it was great — I was pulling in around $1,500 worth of ETH every month. But as Ethereum transitioned to proof-of-stake in September 2022, mining profits took a hit. By October, my monthly earnings had dropped to around $800, and it became clear that staking might be the future.

By January 2023, I decided to shift gears. I sold off my mining rigs for $10,000 and took the hit on my losses. I then moved that money into staking. I staked 10 ETH, worth around $16,000 at the time, and started earning passive income through rewards. The switch was nerve-wracking, but by June 2023, I was earning $1,000 a month in staking rewards, with none of the hassle or energy costs of mining.

Now, in 2024, staking has become a major part of my portfolio. I’ve grown my staked assets to 20 ETH, and with the market’s ups and downs, I’ve managed to make steady, reliable returns — around 5% annually, which comes to around $2,400 in rewards. Mining was a fun experience, but staking has proved to be the more sustainable and profitable choice for me.

Takeaway: In today’s market, staking is proving to be more profitable and sustainable than mining for most individuals. With lower costs and steady returns, it’s becoming the go-to choice for many crypto investors.