With the value of Bitcoin and other cryptocurrencies increasing big time, the chances of generating impressive income from trading crypto remain high. Staking, a popular way of earning passive income is a great way you can choose to invest your crypto.
By simply investing and holding your crypto, you can earn rewards without being active on the network. To get more rewards, you can choose to join a mining pool to contribute and share rewards amongst other members.
Though the crypto industry is experiencing a surge in demand from various investors and individuals, not all types of investments in the sector can yield impressive results. As other crypto enthusiasts resort to other forms of investment, staking is gradually becoming one of the most preferable mode investments. This is attributed to the safety and seamless process that makes it easier for investors to generate income without risking their capital.
Besides being a less risky and secure mode of crypto investment, it is a more sustainable type of investment. So, how can you earn through staking? We put a spotlighton how you can capitalize on staking rewards to generate profit for your crypto investment. You can invest online through The Crypto Genius
How much can I earn from staking rewards?
Depending on the type of coin you choose to invest in, the rewards vary from one crypto to another. The higher the value of a coin the higher the reward. While some coins generate interest of up to 50 %, some wreck in a record low of 7% in interest.
The bottom line, it is important to review the price of every coin to ascertain the most profitable to warrant your investment. However, to receive more rewards, you can opt to participate in transaction validation.
The following are common crypto that you can stake;
- Algorand (ALGO)
- Tezos ( XTZ)
- Decred (DCR)
- Loom Network (LOOM)
- Synthetix (SNX)
Cold staking
Cold staking is a popular staking method in the crypt ecosystem. In thistype of staking, a person delegates staking to a separate wallet. The process entails holding your crypto in your wallet for at least 24 hrs. This aims at staying offline for a while to receive a reward from the blockchain network.
The unique aspect of cold staking is that stakers can still access their wallet despite being offline. The trick strives to run empty wallets to earn rewards. The advent of mobile Apps is an exceptional technology that facilitates the cold staking process.
Flit Mobile App is one of the notable apps that enable stakers to store up to 1000 coins and get up to 100 coins in reward. The App has a total of 80 coins listed on the mobile wallet.
The App has exceptional features that enable stakers to run masternodes and stake coins. The advantage of the platform is that while the stake has the private key, the developer doesn’t have express rights to access the wallet.
Staking pool
Staking pool is a mode of staking that involves a combination of stakers who put together their computation abilities to receive rewards. Stakers in this process combine forces to verify and validate new blocks to be rewarded. This type of staking is regarded as most effective since participants increase their chances of getting more rewards compared to individuals.
With high-security standards associated with blockchain networks, the rewards received by the pool are automatically shared amongst members on the pool based on their investment.
If you have been putting a lot of resources in other forms of staking without getting impressive rewards, it’s high time you try out the staking pool. All you need is to do is participating in the network by solving complex computational problems to receive rewards.
Conclusion
Though the crypto industry has continued to experience exponential growth over the years, identifying the most suitable method you can use to generate profit may be challenging. Coupled with high volatility and the ever-shifting market conditions, staking is one of the perfect ways you can roll out to safeguard your income.
While investors prefer trading, mining, and other alternatives to generate crypto income, choosing the right form is ideal in avoiding crypto-related losses. Therefore, this article offers great insight to help you leverage on staking to maximize crypto returns.
