Cryptocurrency does not cease to intrigue people — everyone wants to get a piece while spending a minimum of effort. It takes a long time to mine, and you want to get a lot at once. There is a solution to that because what could be easier than to stake and win the jackpot? That’s what makes crypto currency staking so popular — the opportunity to become almost a millionaire with no work. If you do everything correctly and minimize the risks as it is said here or on https://globalcryptoexpert.com/university/crypto-currency-staking/, you can profitably multiply your wealth.
Crypto Staking Features
The essence of this process is very similar to an average investment or deposit in a bank. As with ordinary money, cryptocurrency is blocked in your account for a certain period and until it expires, you cannot use your funds.
Stacking is necessary to add a new block to the blockchain. In crypto networks that use stacking (they are called proof-of-stake (PoS)) is required that the cryptocurrency just has to be in the account for a while. These systems are gaining popularity because they allow earning tokens with a minimal initial investment.
All you need to start earning is to choose a project that suits you and figure out what kind of currency and how much you will need. After that you fulfill these conditions and almost automatically begin to multiply your money – just find the “staking” button and do what is needed in this particular project.
In the case of bank deposits, there are with and without the possibility of withdrawal. That is, you can put your money in an account with a withdrawal option without losing interest, but the rate on it will be much lower. The most profitable deposits are those without withdrawal when you just put your money on a deposit for a certain period and only receive money with interest after it expires. It’s exactly the same here – with flexible staking you can use the funds, but it will be less profitable than with fixed staking.
There is also an opportunity to combine your stakes with stakes made by other participants, thus forming a crypto currency staking pool, which has a greater chance of high reward.
How to Get Started
So, you’ve firmly decided that staking is right for you. The most important thing now is not to make any mistakes and not to rush headlong into it.
You need to decide on two things – the currency and the exchange. The first thing you have to figure out is which currency you are going to work with and which one you are going to buy. You can find a lot of cryptocurrencies on the Internet, which will attract you with their slogans and promises of imminent millions of profits, but you have to trust the currencies, which are reliable and are in circulation on popular exchanges.
Next, you need to decide on the stock exchange, and you must choose the one that supports PoS, otherwise, it all makes no sense. Research all the projects well and choose the one that is reliable and provides the widest range of options for staking.
In addition to exchanges, there are other projects that offer such options.
For example, wallets such as Ledger and MetaMask provide the staking function or specialized platforms for staking such as Stake Capital. And, of course, DeFi projects – applications that provide services similar to those provided by banks. You can store your tokens on their platforms and get rewarded for them.
What To Do About The Risks
This way of making money can not be called very risky, but still, there are certain dangers:
- The first risk is financial. Cryptocurrencies can fall in value during the period that they have been blocked;
- The next risk is liquidity, because no matter how much currency you have if no one wants to buy it, you will be left with nothing;
- With fixed staking, you risk losing interest if you withdraw everything early;
- You can’t rule out the risk of cyber-attacks either – there are robbers in cyberspace too;
- You have to be online to receive your reward; if you’re not, you could lose everything.
Of course, you can’t foresee everything, but you can minimize the risks. As already mentioned, to do this, you have to approach the process responsibly. You must choose the most reliable currency and platform for staking.
In addition, you should think about the fact that it is better not to disclose to anyone what you do – it may attract potential thieves. And no matter how you think things through, don’t ever put all your savings into it.