Kaizen Advent №3. Passive income: staking
Staking: A Stable Way to Generate Passive Income
The true beauty of blockchain technology is that yesterday’s hard-to-reach things are now at arm’s length.
And we would not be wrong to say that the opportunities to make money with cryptocurrencies were primary among such things.
We continue to talk about passive income methods in our Kaizen Crypto Advent marathon, and this time we’ll focus on staking.
What is Staking?
Staking is the process of locking your money on Proof-of-Stake (PoS) blockchain networks.
Since the validation of transaction blocks in the PoS blockchains is concessional (based on the agreement of all parties involved), staking helps users participate in the governance process while earning a share of the revenue.
How much can this share be?
It depends on the token and its utility value. That’s why it is crucial to make the right choice in favor of a reliable blockchain when staking.
It is also critical to conduct a preliminary network assessment. Such research will help reduce investment risk and provide confidence in the long-term sustainability of the network’s native token.
Staking: Investments and Revenues
Decentralized networks, as the name implies, have no single governing body.
Because of this structure, anyone can become a direct participant in the blockchain network and contribute to its development.
As we have already mentioned, when you make a stake on a preferred network, you, as a transaction validator, receive rewards for doing so. In this sense, staking can be an extremely effective tool that will bring you a constant passive income.
Ultimately, the amount of tokens and the length of the staking time will play a central role in determining future income: The more tokens you contribute to the network’s validity and for a longer period, the more your total income would be.
Moreover, by placing your tokens on the network for the long term, you also move from being a validator to a full rights holder and gain the right to directly influence the development of the network by voting on certain decisions.
Staking Platforms: Which Way to Look?
There are already many popular platforms that offer crypto staking services.
Here are some of them to look out for:
- Accepts fiat currencies and digital tokens: USD,GBP,EUR, or Bitcoin
- Allows you to earn up to 12% on your investments
- Offers locked staking rates for 10, 30, 50, and 90 days
- Accepts Bitcoin, Luna, ETH, Binance Coin
- Interest rates range from 3% to 35%
- Has a high-level reputation
- Works with Algorand, Dai, ETH, USDC, Tezos, and Cosmos
- Token transfer from external wallets is available
- Great choice for regular ROI (Return On Investment) payments
- Supports Bitcoin, Litecoin, Dash, Dai, and Monero
- 12% to 20% returns on long-term investments
If you want to get a deeper understanding of the cryptocurrency world, then staking strategy is something you should definitely look into.
Not only is staking a good option for earning your first crypto capital with minimal investment, but also a fantastic chance to grow and multiply it (still, some risk exists, so be careful!)
Additionally, a long-term yet conscious investment in the future development of blockchain networks will help you diversify your passive income methods.
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