How Staking Crypto Can Help Provide Fixed Income Growth

With more people looking to crypto as a means to compound their assets and gain a profit, investors are looking for a passive way to earn money through crypto. As such, staking is slowly becoming more popular in the blockchain space and more users are looking to make a profit by putting up their coins into staking pools.

There’s no limit as to how many coins you want to stake. As long as you are fine with the terms and conditions, you can compound your crypto by trusting in the right validator. Since staking is similar to depositing your money in a bank account to earn interest, some investors are beginning to look at it as a fixed-income investment like bonds.

What is a staking as a service platform?

Before we go to fixed income concerns, it’s important to note how a user can even go about staking their crypto. These days, there are staking providers that act as validators for crypto investors to exclusively stake their coins. While there are other many exchanges that provide staking for their users, relying on staking as a service platform can be more beneficial, as these companies specialize in specifically staking, equipped with the technology to achieve this. If you want to do staking full-time, you can stake different tokens simultaneously on this platform.  

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Fixed-income earnings with staking

One prominent question that many are asking is — is it really possible to earn consistently from staking? Simply put, the answer is yes. Fixed income growth is highly possible with staking. Crypto markets are expanding drastically, and sooner than later, businesses and countries will accept them as part of the economy. The popularity of crypto has a good effect on the interest rate you can earn from staking. The more in demand a network is, the higher it pays for new blocks. And as long as the network is operating, you will continue to earn as you stake. 

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Fixed-income investments like bonds promise to give investors a fixed rate of return on the maturity date of the bond. This is what makes staking similar to bonds. Since staking locks up your coins for a given period, the staking platforms can give you a high rate of return depending on the project. For example, by staking Polkadot, you have potentially 10.7% APR, which means that you can get 10.7% of your staked coins after a year of staking them. If the period is less than a year, the interest rate is prorated. 

With staking, you invest and get a fixed rate for your rewards. Even if the rate changes while your coins are staked, you will get the original percentage during the time you staked the cryptos. The fixed income you will get from staking comes from the annual percentage rate (APR) assigned to each network on the staking platform. It can change and grow over time. 

Final thoughts

Staking can create a healthy source of fixed income if you know how to do it right. Rather than depositing your money in a bank to earn less than 1% interest for a month or investing it in bonds where the interest rate is determined by the bank, staking provides you higher yields and allows you to earn greater rewards.

Staking providers such as RockX provide investors a way to grow their assets — from Polkadot to Ethereum 2.0 — at a higher and faster rate than ever before. Managing 200M assets already and trusted by the community, RockX makes staking easy, serving as the smartest platform to earn more in a growing digital asset economy.

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