Cryptocurrency Staking: Is It Worth Attention?
The global economic situation is forcing more and more people to store their assets in cryptocurrencies.
However, not everyone knows that even just storing tokens in your wallet can earn you a good amount of interest, and cryptocurrency staking helps with this.
Cryptocurrency staking is the practice of earning profits by storing a specific category of coins. Users utilize the Proof of Stake algorithm, which protects the blockchain from tampering.
But the point isn't in the principles of the process itself, but in the fact that you can earn real money simply by placing cryptocurrency on a deposit-like platform.
Staking is more like a bank deposit; depending on the placement option, it can be either fixed-term or permanent:
As the name suggests, with urgent staking, you stake cryptocurrency for a specific period. If you withdraw it early, you'll lose profits, and the unfreezing process itself will take some time. With perpetual staking, funds are available at any time, but the reward is expectedly smaller.
Features of using staking
This type of investment can be used both on the Binance exchange and in some cryptocurrency wallets.
I prefer the Binance exchange option because it offers a much wider selection of assets for staking than a regular cryptocurrency wallet:
Depending on the cryptocurrency, location, and placement conditions, you can earn between 3 and 40 percent per annum, which is quite good considering the investment is free.
The key is to choose the right cryptocurrency. Stablecoins . Other cryptocurrencies may offer a higher interest rate, but also carry a higher risk that the cryptocurrency itself will fall in price.
Unless you use hedging by opening an uncovered sell trade with one of the cryptocurrency brokers for a similar asset.
Overall, such investments are certainly worth considering, especially if you already have a stash of stablecoins that are currently unused.
