What Is Staking?
In return for your support, the network will reward you with interest payments and/or additional tokens.
The process of staking can vary depending on the cryptocurrency you are staking.
For example, some cryptocurrencies require you to run a full node in order to stake your coins, while others allow you to stake your coins through a third-party service.
In general, the more coins you stake, the higher the rewards you will earn. However, it is important to note that staking rewards are not guaranteed and may fluctuate depending on the health of the network.
What Crypto can be Staked?
Cryptocurrencies that use proof of stake have a market cap of $597B with an average yield of 6.5% APY.
In Q1 2022, annualized staking rewards hit an all-time high at just under $15 billion, up 57% vs Q1 2021.
Top proof of stake blockchains by market cap include:
- Ethereum 2.0: 4.1% yield in Q2 2022
- Solana: 4.8% yield
- Cardano: 5%
- Polkadot: 13.9% yield
- Avalanche: 8.7% yield
When selecting a cryptocurrency to stake, consider one with both high yield and market cap.
Since you have to buy the crypto to stake it, you should believe in the token’s long-term potential. Be very careful staking tokens that you’re not familiar with.
How to Stake Crypto?
The process of staking cryptocurrency is fairly simple and can be done by anyone with a computer and an internet connection. The first thing you need to do is choose the currency you want to stake.
There are many different currencies available, so make sure you do your research to find one that you’re comfortable with. Once you’ve chosen your currency, you need to acquire some of it. You can do this by buying it on an exchange or receiving it as payment for goods or services.
Once you have your currency, you need to find a wallet that supports staking. There are many different wallets available, so again, make sure you do your research to find one that’s right for you. Once you’ve found a wallet, you need to deposit your currency into it.
Once your currency is in your wallet, you’re ready to start staking! The process of staking is simply lending your currency to the network to help secure it and earn rewards. The amount of rewards you earn will depend on the amount of currency you stake and the length of time you stake it for.
Staking cryptocurrency is a great way to earn passive income and help secure the network at the same time. So if you’re looking for a way to make money with cryptocurrency, staking is a great option!
That’s all for today!
Hopefully, you can now start staking your tokens and earn cool rewards for it.