“Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it.”
What Is Staking and How Does it Work?
While one of the most well known and popular ways to generate cryptocurrency is mining . Mining coins costs a lot of money to set up , lots of ongoing costs in electricity and is often a unsustainable complex process.
Do to this , Proof of Stake ( Staking) has arisen as one of the best ways to earn a passive income through crypto .
When a holder of a crypto that operates on proof-of-stake ‘stakes’ their coins they are in essence lending their crypto to the network in order to validate transactions. While your coins are staked they are unable to be traded or withdrawn for a set amount of time.
Do to this , Proof of Stake ( Staking) has arisen as one of the best ways to earn a passive income through crypto .
When a holder of a crypto that operates on proof-of-stake ‘stakes’ their coins they are in essence lending their crypto to the network in order to validate transactions. While your coins are staked they are unable to be traded or withdrawn for a set amount of time.
How Can I Earn From Staking
In return for locking up and staking your cryptocurrency, the network awards you with a regular payout that ranges from 4% - 20%+ APY. This payout differs depending on what coin you stake and where you stake it .
While a consistent deposit of crypto is always nice , the real power of staking comes from its compounding introduction when staked / held over a long period of time . Since the coins earned from staking is often added to the balance of coins staked , the longer you hold your coins the more that your ‘bag’ increase and thus the more you regular staking rewards increase with no extra work on your part.
While a consistent deposit of crypto is always nice , the real power of staking comes from its compounding introduction when staked / held over a long period of time . Since the coins earned from staking is often added to the balance of coins staked , the longer you hold your coins the more that your ‘bag’ increase and thus the more you regular staking rewards increase with no extra work on your part.
Where Should I Stake My Coins?
Depending on your chosen crypto and your plan for that crypto ( i.e. holding long term, trading, purchasing things with) different options will suit different needs.