The internet is rife with opportunities to make money. In the last several years, crypto has become a popular asset class for huge profits.
With the crypto market has developed in the last few years, investors can make money beyond simply buying and selling coins. In recent years, people can compound their crypto and maximize their income by staking.
Simply put, staking allows you to put your crypto into a pool and potentially see greater profits to your assets. Staking involves putting your crypto into what’s called a ‘staking pool’ for a given period of time, which can then lead to exchange for rewards. For example, if the locked-in period goes for 24 months or less, you will reap extra coins as payment for lending your crypto to the developers.
Proof of work vs proof of stake
In recent years, staking has become incredibly popular. Its ability to reward investors through a rather simple approach is appealing to investors and crypto enthusiasts. Unlike conventional methods like proof of work, staking uses proof of stake, which helps developers use staked coins to power their system.
To explain, Proof of Work requires users to contribute hi-tech resources to produce enough energy for the blockchain project. So, if you are a simple investor and you only have a few coins to spare, Proof of Work might not be the most suitable system for you.
Not only is it very tech-intensive to run a Proof of Work system, but the yields also are not as high as well. With proof of stake, getting started is easier and more affordable, with most projects requiring a few coins to contribute. Upon placing your coins into a staking pool, all that remains keeps them locked in long enough to see a profit.
For investors with no time to trade
Trading consumes time. In fact, at least 2 hours of day trading is required to perform with some success in the market. This allocating at least 15 hours of your week to trading on the low side, with high-end trading ramping up to 40 hours.
With crypto staking, on the other hand, all that’s required is time and enough crypto coins to get started. First, you must sign up for a trusted wallet, and upon doing so, use that as storage for your digital assets. Everything else thereafter is made easy.
Another reason investors are looking to staking is how well it contributes to the advancement of blockchain technology. The decentralized system cryptocurrencies are built on is huge. The technology behind it all — blockchain — does not cater to simply coins. It can also support smart contracts and non-fungible tokens (NFTs).
With crypto staking, you can learn more about upcoming projects and how blockchain projects are created. As a result, you inevitably learn more as an investor in this space and, as such, can benefit far greater than just making passive income alone.
Participate in blockchain governance
Crypto staking helps introduce investors to a unique way of earning money from cryptocurrencies — staking for participation in governance. This is where investors are given voting rights to engage in the election of the leaders and managers of a particular blockchain project. If you decide to stake in a new project and choose to stake for participation, you get the opportunity to elect who you may think is the best fit for the leadership role.
This is something new to crypto investors. However, if you wish to learn more about how governance works and how you can make a difference, then staking your crypto is the first step to do.
Once you are engaged in staking crypto, you will start showing your interest in other similar projects. If you are not a tech-savvy person and you don’t have enough tools and information to get into the blockchain, crypto staking is the best option you have. Right now, there are 35 decentralized exchange platforms and about 4,000 coins where you can invest in.
Staking the right way
There is no doubt that staking can reap a lot of benefits for investors, both old and new. Beyond the surface level profitability of potential passive income, staking brings investors closer to the world of blockchain and contributing to the larger ecosystem.
Decentralized finance system can offer a whole lot to the world, which is why its growing tremendously. Staking serves as a huge upside through its rewarding system. Whether you are here to make your money work for you or be knowledgeable on stake cryptocurrency, what is most important for any investor is to learn more about staking service providers and place their trust in the right validators to stake their coins — both profitably and securely.
Since staking can’t be done alone, companies like RockX have entered the growing blockchain space to provide staking-as-a-service, so that investors can grow their assets, compound their crypto at a higher, faster rate than ever before. Trusted by industry leaders and managing 200M assets already, look to RockX to help make staking easy.