Crypto staking has been well-accepted by investors since the birth of decentralized exchanges. With every year, more investors are joining the community in to stake their coins with providers such as RockX to help increase their assets.
With greater stability and trusted technology, Proof of Stake provides huge benefits, with many investors reaping tons of rewards. While the difficulty in getting started is rather low, knowing a thing or two about how to stake can be a bit daunting at first. For investors who want to be in the crypto game, staking is one way to make money with your crypto without spending so much time trading. You just need to contribute to a pool and reap the rewards.
More than a money-making scheme
Crypto staking has opened new opportunities for people to participate in the crypto world — and this goes beyond money. Not only can staking allow you to participate in blockchain governance, but it also allows you to contribute to the development of the blockchain space as a whole. You can be a part of change, by helping to choose blockchain leaders and decide who manages the blockchains on your behalf.
Think about it like you are a shareholder of a company. Those who get elected serve like the Board of Directors, who will eventually decide for the betterment of the cryptocurrency. Your voice matters here, and to have a voice, staking is required. The higher your stake is, the more you can engage in governance.
Increase in coins
A lot of investors believe in the power of HODL as they believe in the coins they stake in and hope for it to eventually go “to the moon.” While the potential is endless, it’s always advised to be wary of the volatility of the market at large. While your favorite crypto might have increased by 30% one day, the price can dip any moment so it’s always encouraged to never pour all your money into a given coin.
According to some investors, holding coins for a while affects the mobilization of currencies and therefore reduces their economic dynamism. Considering price volatility, there is a greater risk when you hold, than when you stake. In crypto staking, the more you hold, the more rewards or coins you get regardless of their value. Staking doesn’t affect the economic dynamism of crypto negatively since it doesn’t affect its value. In fact, it helps to increase the dynamism.
The great thing about staking, however, is that by investing a certain amount of your crypto into a staking pool, you can compound your crypto by passively leaving it locked up. To do this, you must first choose a trustworthy validator.
Trusting in the right validator
Crypto staking might sound challenging for beginners, as the concept is not entirely known by many, but with the right validator, any investor can get started immediately. In crypto staking, there’s no need to wait for years. You can easily liquidate or take out your coins if you think it’s time.
Compared to holding, where investors keep their crypto for ten years or more, staking is better for short-term investors as there is much inflation going on in the system, which can eventually decrease your token’s worth. The moment you withdraw your stake, you can sell it at a higher price.
Staking-as-a-service providers such as RockX were made to make staking easy, doing it safely and securely for investors of all sizes. With over 200M assets already managed, we help you to gain an edge in the crypto market by staking yours.