What Is Staking?
Staking is an investment option for cryptocurrency traders where they can earn interesr by locking in their crypto coins or tokens. It resembles a fixed deposit except here by locking up the tokens the users help in network validation. Staking is a great option to earn passive income.
How does Staking work?
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. The percentages too may vary from exchange to exchange.
Which crypto can be staked?
Usually cryptocurrencies that use proof of stake mechanism can be staked. There are other criteria too but given the volatility of the market they too can vary.
In Q1 2022, staking rewards reached an unprecedented peak, soaring to nearly $15 billion on an annualized basis, marking a significant 57% increase compared to the first quarter of 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.
Staking on Zelta: Zelta Vault
On Zelta, we have made it easier for you to put your crypto to work with interest as high as 16.5% annually!
Currently you can stake the following crypto assets:
USDT; MATIC; DOT; BTC; ETH; LTC; TRX; BNB; LINK; XRP; APE; PAXG.
You can also choose the duration of your choice ranging from 1 week to 1 year. In case that doesn't work out for you then there's a "Flexible" option as well, where you can enter and exit any time.
More details on: https://zelta.io/earn/
How to Stake Crypto?
The process of staking cryptocurrency is fairly simple and can be done by anyone with a computer and an active 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 will also need to own the minimum amount required for staking. This can vary depending on the protocol.
The process of staking is simply lending your currency to the network to help secure it and earn rewards. The 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 however if the staked assets are withdrawn before the lock in period then all interest is lost.
Hopefully, you can now start staking your tokens and earn cool rewards for it.
Image Credits: Zerion; Mudrex.