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Crypto is a new way to make money in the modern era. Many people thinks that only way to make money with crypto is to buy and wait for it to go higher or trade in various coins to make money. If you are one of them then my friend you are surely mistaken there are plenty of ways to make money in crypto Staking is one of the primary choice for crypto investors.
What is Crypto Staking?
Staking is a way in which you get rewarded for holding a particular cryptocurrency like Bitcoin, Ethereum and many more in the list. You can stake cryptocurrencies in various pools at a certain return. Each platform provides different returns for different cryptocurrencies.
You don’t have to do any complex task, staking crypto is just piece of cake. First of all you have to research for the platforms which gives best returns on staking your crypto. then you have to transfer your crypto to that platform and then you can stake your coin there.
Once you stake your crypto, your coins are locked and you can’t withdraw your coin for a chosen period of time and once your time has completed you can withdraw you crypto with promised returns.
Why someone will pay you for your crypto?
It’s very simple once your coins are locked blockchain put it to work. and that mechanism is called “proof of work” in which your crypto is used to verify transaction and payment processing.
Advantages of Staking
Crypto staking is a major advantage for crypto investors because they don’t have to buy and sell their crypto daily, once that buy it and wait for long time for big profit, in that case they can just put their assets to work for generating some extra cash.
So , if you are also long term investor then you can also put your money at work.
Staking also helps blockchain in maintaining security and efficiency of the blockchain.
Staking is not a risk and reward game like trading, staking comes with it’s own advantages and disadvantages, like if you have locked your crypto for staking then you can’t withdraw it for the time you have chosen to lock.
And in that period of time anything can happen to that crypto, it might go to moon to deep under the sea. for example we have seen Tera Luna how it went from moon to earth same thing can happen with your crypto too, that the risk you are going to deal with while staking.
Here is the list of Best Staking Plateforms in 2022:
I hope you got the concept of staking crypto it’s advantages and disadvantages. If you still have some doubts you can just comment it below.