Staking and interest-earning wallets are similar in that you passively generate crypto rewards over a period of time. However, the mechanisms in which they work are inherently different. The crypto that you get from staking DeFi tokens in a staking pool is distributed from a validator as a reward for contributing to the development of the network. However, interest-earning wallets can be thought of as high-interest accounts at a bank. You lend your digital assets to an exchange or trading platform by depositing them into an interest-earning wallet. In return for lending your crypto, the exchange will pay you interest on top of the principal. For more information about the best wallets to earn crypto interest in Australia, you can read our guide.