The annual inflation rate of the US in 2022 is 8.3%, which makes this the best time to challenge this rising inflation and make some side money. Guessing how? You can stake crypto and gain interest on your idle savings.
But do you know about crypto staking and its benefits?
Crypto Staking: Its Definition
Crypto staking “shuts in or locks” a chunk of your available cryptocurrency for a definite time that contributes to a blockchain network. This side hustle strategy is great for many and has great rewards for people with a significant crypto value in their savings.
Crypto Staking: Its Operation
The PoS (Proof of Stake) is a consensus mechanism that verifies and secures the transactions without the need for a third party. When you stake your crypto, it becomes a part of the blockchain network, and the network puts it to work. Ergo, when validators lock crypto, they earn rewards.
Types Of Stake-able Cryptocurrencies
At the moment, cryptos with Proof of Stake can be staked. These are:
- Ethereum (ETH)
- Polkadot (DOT)
- Solana (SOL)
- Cardano (ADA)
- Tezos (XTZ)
- NEAR Protocol (NEAR)
But working with platforms like SmartCredit.io can allow you to stake SMARTCREDIT tokens and earn rewards within 90 days. With weekly staking rewards & gasless re-staking benefits, anyone can make a good side income.
Staking Crypto: Methods
Remember, not every crypto holder can become a validator. You should have a significant amount of cryptos in your account and an efficient hardware system with sufficient computational power to qualify as a validator.
With minimum barriers, the crypto industry has found better ways to use crypto assets. The other options available include:
These are easily accessible, making them a suitable option for crypto holders to stake crypto. Numerous exchanges like SmartCredit.io propose crypto staking services to their users. Each platform has a set of different rewards and perks. So, make sure you check them out before getting started.
Staking pools is another option, where peers are responsible for exchanging crypto. As the word “pool” suggests, numerous contributors stake their crypto assets jointly. However, the caveat is – in spite of the fact that many people contribute to the joint pool, the crypto required to stake is less, with only a few rewards than that awarded to a validator.
Benefits of Crypto Staking
People often get concerned about the ownership of their cryptos. With crypto staking, your currency will remain under your ownership and safe throughout the process. Long-term crypto holders can gain rewards on their assets.
The reward you can gain is a percentage yield similar to acquiring interest on your savings account. This return percentage is different for each crypto. However, this number is mostly higher than the per-year percentage yields you can acquire from a conventional bank.
Staking also offers enhanced security and efficiency to your crypto projects on the blockchain. Staking a portion of your crypto allows you to strengthen blockchain while making it resilient to attacks.
Staking crypto is a fantastic opportunity that makes side income for people with crypto assets. The more crypto you stake, the better yield percentage and rewards you can achieve. Responsible crypto staking can be a very profitable source of income for you as a PoS holder.
David is a crypto enthusiast and an expert in personal finance. He has created numerous publications for different platforms. He loves to explore new things, and that’s how he discovered blockchain in the first place.