What is Staking in Crypto: A Guide
Staking is one of the revolutionary concepts introduced by blockchain technology and cryptocurrency. It is an innovative concept that offers many benefits, both short-term and long-term. It is a way of earning passively and increasing financial gains.
In this blog, we will discuss the benefits of staking in crypto, what staking in blockchain and cryptocurrency offers, and how to stake using crypto wallets.
What is Staking in Blockchain?
In simpler terms, Staking in crypto is a process in which the stakers or the participants give their digital assets and cryptocurrencies they own to the network to help validate transactions and secure the blockchain.
There are different websites and platforms that offer staking. Staking in Blockchain doesn’t come without rewards. As their commitments, the stakers receive certain rewards depending on the platform they are staking on. Normally, in platforms like Binance or BitNasdaq, staking rewards consist of additional cryptocurrency. The users commit their digital assets for a period of time and receive additional cryptocurrency when that time period is completed. The rewards depend on the staking time period.
Down below is a short guide on staking crypto asset;
A Guide to Staking in Crypto
The following are the steps you need to follow for staking in crypto and blockchain;
- The first step is to choose a suitable cryptocurrency that you want to stake. For example, Ethereum, USDT, ADA and BNQ, etc.
- The second step is to choose a compatible staking crypto wallet, and you need to have the right amount of cryptocurrency that the wallet requires.
- You can now stake your digital assets by subscribing to a suitable period. Each time period has a specific APY it generates, which is basically the percentage of reward that you will receive. So, Choosing a suitable wallet and cryptocurrency that offers good rewards is a must.
Normally, blockchains have two types of stakings i.e. Flexible staking and Locked staking. In Flexible Staking, users can take out their assets at any time, but it does not offer a good APY rate compared to Lcoked Staking. In Locked staking, Assets are locked, and users can not take them out before the time period is completed. Locked staking offers more APY rate. APY rate depends on the time period. The higher the time period, the more APY is generated.
What are the Benefits of Staking in Blockchain
The following are the advantages of staking in crypto;
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Passive Income
Staking is just like having a savings account in a bank. You don’t need to do any work and you keep on receiving additional money as long as your assets are in your account. Staking crypto assets provides ease as it is a form of passive income where the users need to simply commit their assets and enjoy the rewards they receive. As Charlie Shrem said;
“The reason we are all here is that the current financial system is outdated.”
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Network Security
Staking in crypto does not only benefits the user but it also provides security and stability of the blockchain network.
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Environmental Sustainability
Comparing traditional mining and staking, staking uses less energy and provides environmental sustainability. Unlike traditional mining which impacts the environment, staking reduces the carbon footprints and resource consumption associated with blockchain operations, thus reducing any environmental impact.
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Voting and Governance
There are some blockchains that allow its stakers to be a part of the blockchain’s future by voting on proposals and decisions regarding the future.
How to Choose a Good Staking Crypto Wallet
A staking crypto wallet is a digital wallet that stores cryptocurrencies and also allows user to stake their digital assets and earn certain rewards. For example, OurWallet is a digital wallet offering staking and having all those features that need to be carefully administered before choosing a wallet, such as; security, compatibility, and user-friendly interface. OurWallet prioritizes its security and offers a private and safe space to the user. It can hold various cryptocurrencies and gives options of multiple cryptocurrencies for staking. Another important thing is a user-friendly interface. A user-friendly interface makes it easier for new or old users to better understand everything, it provides ease and reliability. So, OurWallet is among the best crypto staking wallet comprising many features along with offering good rewards for staking.
In Conclusion
Staking in crypto and blockchain is the best of passive income. By carefully examining all the wallets and choosing the best wallet for staking cryptocurrency, users can advance in the financial world and gain numerous benefits.
