Build your passive income with “staking”

Admin 03/October/2022 14:28
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The staking industry is rightfully gaining momentum in recent years. It is the process of earning rewards for holding digital tokens or coins on the digital investment platform backed by Blockchain system. Staking can be a great way to use your digital token or coin to generate passive income, it is because some digital investment platforms offer high-interest rates for staking.

What is staking and how does it work?

Staking involves locking up your token to gain a reward for validating new transactions and admitting them to the block in the platform that utilizes blockchain technology. It’s done to make sure that only legitimate transactions are added to the block. Staking is comparable to investing money in a saving account in which banks offer return interest while your investment capital remains.

Those who want to participate in staking are required to lock up some of their tokens/coins.  Staking can be done both individually and​by participating in a staking pool with other stakers. Pool staking allows multiple investors to combine their tokens and receive big rewards to stake without having to lock up a huge sum of your token/coins.

What are some of the most token/coin used for staking?

Currently, there are several available staking tokens in the world namely, Ethereum (ET), Binance (BNC), Cardano (ADA), Solana (SOL), and other cryptocurrencies tokens utilizing blockchain technology. Z1 FINANCIAL – which is the first company in Southeast Asia that has developed a digital investment platform using Blockchain technology to bring the tokenization concept to real estate investment – there is also available option for investors to earn staking from its digital investment platform by holding ZTU Token.

Staking Benefits

Once you’ve staked your assets, you can collect staking rewards on top of your holdings and compound future rewards to grow them even more. Interest rates vary from the 6% a year offered by well-reputed networks, like ethereum (ETH) and Cardano (ADA), to as much as the 100% offered by smaller networks, such as Kava (KAVA) and PancakeSwap (CAKE).

Now, how to get started?

Investors must purchase coins or tokens from the leading digital asset exchange, such as Coinbase, Binance, and Kraken. After that, they can begin to stake in the program. Typically, the program will inform how much percentage they offer per staking.  It is important to note that the token or coin used to lock up for staking remains as your assets and can be traded for the case and other digital currency depending on the contracts.

However, there are some risks too

 As with any type of investment, staking has its risks. Staking frequently necessitates a lockup or “vesting” period during which your digital token cannot be transferred for a set length of time. This can be a disadvantage considering that even if prices increase, you won’t be able to trade staked tokens during this time. Prior to staking, it is crucial to learn the precise staking requirements and regulations for each project you intend to participate in.

 Staking offers attractive returns

Staking could be an attractive way to generate income returns based on the offer of the program and guarantee by the staking contract. According to Staking Reward, investors generated returning rate of about 11% annually from 261 stakings digital investment platforms.

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