If you are here, it is very obvious that you want to make money through crypto investment. In this Bitcoin era, when almost everyone is crazy about cryptocurrencies. It is already becoming very competitive. But, as we know, necessity makes a way for new inventions. With the rise in popularity of cryptocurrency, investors are finding new ways to make good money. One of these ways is to stake your Bitcoin Cash.
If you don’t know much about Crypto staking, we have your back. We are here to tell you everything about crypto staking. You will get to understand the term, working and ways to pick the best staking coins. So, let’s get directly into Crypto staking and its process of working.
All about the Crypto Staking
Crypto staking means to stake or hold your Crypto coins. You must be wondering about the purpose that crypto staking serves. Investors stake or hold their coins in order to earn high interest. This is one of the ways in which you can make money without buying more Cryptocurrency. This is a source of legitimate passive income where your crypto makes you money.
Cryptocurrency works on Blockchain technology which is a decentralised network. This removes the middlemen from the transaction process. This ultimately gives a benefit in staking the coin. When you put more crypto at stake, your return of investment increases.
Now, you need to learn how to start with Crypto staking. You can easily stake your cryptocurrencies by using your own computer.
3 Ways to Stake Crypto
For staking, first you need to choose crypto based on proof-of-stake consensus mechanism. This mechanism is necessary in validation of crypto transactions. There are mainly three ways to stake crypto ;by using an exchange, by joining a staking pool and, being a validator.
To stake a crypto through an exchange, you can choose exchanges like Binance, Coinbase and eToro. Not all exchanges provide the service of Crypto staking. Some exchanges also charge some amount in order to stake your coin.
To stake a crypto by joining any staking pool, you need to connect with any of the legitimate staking pools. There are not many valid and trustworthy staking pools available. So, always do research before joining any for staking.
Another way to stake crypto is by being a validator by yourself. This is one of the most reliable processes for crypto staking. To validate any block, more than one validator is required. After achieving the required number of validation the coin is locked. In comparison to the former two methods, this one is a bit complicated but more reliable.
How to Increase your Staking Profit
Making profit through Crypto staking is a good way to make money in crypto without much risks involved. Basically, you don’t need to trade but instead buy and hold your coin through staking to earn profit.
Now, the question is, how can you increase your staking profit? Answer is very simple, the more you stake, the more you earn. Apart from this, there are mainly three factors to consider to increase your staking profit.
These are coin value, fixed supply, and actual applications. All these three factors deal with demand and supply. So, always put your money in coins with stable prices and high demand.
Some Best Cryptocurrencies to Stake
This becomes really important to know some of the best cryptocurrencies to stake. This is because you cannot stake every crypto. The Crypto based on proof-of-stake consensus mechanism can only be stake. For this reason, one of the most popular crypto , Bitcoin, cannot be staked. Here are some coins which you can stake.
- Ethereum: This is one of the most popular altcoins. A lot of people have invested in this coin. When it comes to staking, this coin proves to be very profitable. You can get 5-17% of growth annually on staking of Ethereum.
- Cardano: This is also a popular coin and you can stake Cardano through Binance. You can expect upto 24% of annual growth on staking of Cardano.
- Cosmos: Cosmos is like internet of Blockchain, where you can transact between different blockchains. Exchanges like Binance, Coinbase, Kraken allow staking of Cosmos. You can get an annual profit of 7% on Cosmos staking.
- Polkadot: You can easily stake your Polkadot coin through Binance or Kraken. It gives 12% of annual profit.