5 Main Benefits of Staking

More and more crypto-enthusiasts are interested in staking. It is an excellent alternative to traditional mining and bank deposits. Moreover, it is already available to users of many cryptocurrency exchanges and wallets. That's why we decided to describe the features of staking and its main advantages in more detail. We will help you understand how this process differs from traditional mining.

What is Staking?

Staking is a method of passive income where users store coins on their crypto addresses using the Proof of Stake (PoS) algorithm and ensure that the Blockchain works. This gives them a profit. This feature is only available to cryptocurrencies that run on PoS. For example, EOS, Tezos, TRON, and Cosmos. In the future, Ethereum, the largest altcoin by capitalization, plans to switch to the PoS algorithm.

The essence of staking is to ensure all transactions on the Blockchain and support the operation of the network. For this, holders of digital coins receive remuneration.
The more coins a holder has, the more likely they will become the creator of a new block.

Many users wonder how staking differs from mining. After all, both processes mean receiving a reward for keeping Blockchain up and running.

Mining is the process that keeps Blockchains working by using the Proof of Work (PoW) algorithm. Bitcoin runs on this algorithm. Thanks to computing power, miners keep the network running, perform transactions in it, and are paid for it. The main difference is the algorithm that users use to keep the Blockchain running. In both cases, users are rewarded by creating new blocks. PoS technology allows new blocks to be generated without using large computing power, the purchase of video cards, or ASIC miners.

Accordingly, staking is a greener and more energy-efficient way to create a new block.

All these features make staking in high demand among users. The developers of Stakeme.io understand this as well. Every user of this platform can also "freeze" tokens for passive income. It is fast, convenient, and safe. But first, you need to learn more about the benefits of such income.

Now let's move on to a more detailed description of the main advantages of staking as an alternative to traditional mining.

Financial Gain

There are not many financial instruments for obtaining a stable passive income. Bank investments have a very low yield of about 2-3% each year. At the same time, trading on financial markets, cryptocurrency trading, and investments in real estate or business require significant investments and skills. Staking is a new reality and a new alternative with great financial benefits.

Let's take an example. Stakeme.io offers users the benefit of staking of such coins:

BOSTROM ($BOOT) (yield from 77%);
Persistence ($XPRT) (yield from 37%);
Axelar ($AXL) (up to 28% yield).

As you can see, staking yields are much higher than many other types of financial instruments. However, you don't need special knowledge and skills to do it. You will spend only a few minutes to activate the staking service in your cryptocurrency wallet. Thereafter, you will receive a daily payout of profits until the staking period. To the nominal yield, you should add the possible percentage increase in the price of the selected coin. Diversify your risk, and you'll be able to exceed many times the returns offered by cryptocurrencies.

Essentially, you get a reliable and profitable financial instrument with no limit on the amount of your initial investment. You can buy $50-100 worth of coins and tokens and already start earning the next day of staking. Such functionality is not available in other investment tools. In addition, it only takes a few minutes to start staking. The developers of such wallets as Stakeme.io have taken care of an intuitive interface and maximum simplicity of functionality.

In addition, more and more staking tokens appear every year. Stakeme.io offers most liquid and promising coin for financial gain. However, other staking tokens will be appear.

Energy Efficiency

There is a growing environmental awareness in many countries to save natural resources and reduce harmful emissions into the atmosphere. This encourages many users to choose staking as an alternative to traditional mining. The PoS algorithm is more energy efficient. It does not require a large amount of electricity to run video cards, computers, or ASIC devices. Storing cryptocurrency in your wallet does not harm the environment. Therefore, it is believed that in the future, most cryptocurrencies will move to the PoS algorithm with staking capabilities to ensure the performance of the Blockchain system.

For example, the problem of energy efficiency was the main reason for the transition of the Ethereum network to PoS. As you know, Ethereum 2.0 on Proof of Stake has been in development for a long time and will be available soon. This will open even more opportunities for participants of this network and owners of ETH cryptocurrency.

Minimum Investment

The minimum investment is one of the main advantages of staking as an earning tool for cryptocurrency owners. There are many ways to make money in the cryptocurrency market. For example, you can engage in trading or buy a cryptocurrency for storage. However, this requires time and a lot of floating money. Staking allows you to earn even with a small investment.

You don't need to buy hundreds of thousands of dollars’ worth of mining equipment or risk money during intraday trading. Staking is ideal as an alternative to bank deposits. For example, the yield of this financial instrument in Stakeme.io can exceed 28-77% each year. At the same time, payments are made in cryptocurrency, which can rise in price by dozens of percent.

Try to "freeze" a few hundred dollars in the selected cryptocurrency available for staking. Monthly payments will help you understand how this tool works and its prospects. Other types of cryptocurrency investments require a much larger investment and considerable time, effort, and skill.

Simplicity and Convenience

Anyone can test cryptocurrency staking. We have already written that many cryptocurrency exchanges and cryptocurrency validator have this feature. Stakeme.io is no exception. Each user can freeze tokens in just a few clicks and earn income.

Money in staking is charged daily, whichever token you choose. The money can be returned to your address for free use at any time. This is much more profitable than bank deposits and many other financial programs. It can take 3-5 minutes from the moment of registration in the cryptocurrency wallet to the launch of staking. It is a very convenient tool for making money in the cryptocurrency market. Try it yourself!

High Level of Security

A high level of security is another important staking factor. The PoS algorithm has fewer vulnerabilities. It is almost devoid of a 51% attack risk, which is relevant for small-cap PoW coins. It would take too much cryptocurrency worth hundreds of billions of dollars to capture 51% of the entire PoS network. At this point, it is almost impossible. Besides, no one would risk their savings. After all, the proof-of-work algorithm involves freezing their cryptocurrencies and then attacking them later. This does not make sense.

Conclusion

You can consider staking as one kind of passive income in cryptocurrency. It is a promising technology with many advantages described in this article. However, before you start investing, you need to read the terms and the offers' profitability carefully. Do not forget about the need to diversify investments and choose a reliable platform. Stakeme.io will help you secure your savings and make a profit with high returns. Perhaps this is your chance to become part of the cryptocurrency market now?

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