What is crypto staking?



To start in cryto staking, you must first understand the mechanism. Simply put, staking consists of immobilizing crypto-assets (Bitcoin, Ether, DAI, etc.) on a digital wallet. This is in order to contribute to the operation and security of the blockchain network.


By blocking crypto-assets on the wallet for a certain time, their holder can claim rewards in the form of tokens. In other words, they receive passive income in the form of interest and/or dividends. Staking currency is particularly profitable in the long term. Despite a very volatile market, the staker will still receive crypto dividends.


The advantages of cryptocurrency staking in 2022


Generate regular passive income Contribute to the security of the blockchain Ability to start without the need for large capital Highly profitable staking rewards Increasingly varied value propositions Possibility of delegating the operation to a platform


Crypto staking: what return to expect?


It is quite possible to generate fixed and fairly substantial returns with cryptocurrencies. Comment? Through staking. This type of placement is very commendable. This is why the number of users who resort to this practice does not cease to increase. What is crypto staking? How to stake crypto? And above all, where to do crypto staking?

As for the return of this type of practice, it usually depends on the cryptocurrency staked. The return on investment (ROI) can range from 5% to more than 50%, but it must be remembered that if the ROI is high, so are the risks. Also, to avoid unpleasant surprises on arrival, you have to take the time to find out about the project before starting.


The interest rate for staking cryptocurrencies depends on:


Largely from the number of participants in the blockchain: the higher it is, the lower the reward will be. The duration during which the cypto-assets are immobilized: the longer the period, the higher the return. But also the volume of staked crypto-assets


Here are the cryptocurrencies that are currently offering the best returns:

Staked cryptocurrencyAnnual returns
Terra (LUNA)37.79%
Polkadot (DOT)13.06%
Solana (SOL)11.63%
Cardano (ADA)7.05%
Ethereum 2.0 (ETH)7.87%
USD Coin (USDC)3.67%
Tezos (XTZ)5 à 6%



Staking VS Cryptocurrency Mining

Staking is sometimes mistakenly confused with cryptocurrency mining. These are certainly two mechanisms that have the same objective, that is to say to make the blockchain work and secure it, but which have a different functioning.

In order to be able to better understand the differences between the operation of staking and mining of crypto-currencies, it is first necessary to know and know how to differentiate between Proof-of-Work (PoW) and Proof-of-Stake (PoS). They intervene in particular during the mining phase of crypto-currencies and correspond to the stage of control and validation of new transaction blocks in the blockchain.

PoW (Proof of Work) requires high computing power. To this end, it must use complex algorithms that work non-stop and consume a large amount of electricity to ensure data processing.
PoS (Proof of Stake) is much less energy-intensive, because it allows you to create blocks without having to go through mining. Cryptocurrencies themselves contribute to the resolution of the calculation and in return receive rewards.

In summary, Proof of Work (PoW) is similar to mining while Proof of Stake (PoS) corresponds to staking. And the bottom line is that the more cryptocurrencies locked up in a wallet, the higher the rewards.

How to do crypto staking?

To do crypto staking, it is possible:

Use your own cryptocurrency wallet.
To use crypto-currency services such as ZenGo or etoro or Defi wallet

Find out before you start

Then, before starting to do crypto staking, it is important to ensure beforehand that the chosen blockchain uses the Proof-of-Stake mechanism. Whether you choose to use your own wallet or use the services of a staking platform, it is imperative to follow these requirements:

The wallet must be able to support staking and be online 24 hours a day, 7 days a week except in the case of cold staking.
Digital assets must be locked for a longer or shorter period before the staker receives his reward.
The platform may impose a minimum amount to be respected

The list of some platforms Where to do crypto staking


1. Defi Earn Crypto.com






2. Etoro Platform for beginners





Crypto-assetsStaking Monthly Yield Remuneration PercentageNumber of days of detention
 Bronze Silver, Gold  Platinum Diamond  Platinum+
Cardano (ADA)75%85%90%

9 days for the introduction of staking.

Remuneration from the 10th day of detention.

Tron (TRX)75%85%90%7 days for the introduction of staking.

Remuneration from the 8th day of detention.











 

Cryptocurrencies

Bitcoin7%
Ethereum7%
 

Stablecoins

DAI12%
USDT12%
USDC12%



Here are the cryptocurrencies that are currently offering the best returns:




Staked cryptocurrencyAnnual returns
Terra (LUNA)37.79%
Polkadot (DOT)13.06%
Solana (SOL)11.63%
Cardano (ADA)7.05%
Ethereum 2.0 (ETH)7.87%
USD Coin (USDC)3.67%
Tezos (XTZ)5 à 6%




Conclusion


Cryptocurrency staking offers the opportunity to generate passive income from cryptocurrencies. This is a practice that is becoming more and more widespread in the crypto-sphere and which makes it easy and quick to cash in good returns. Of course, there are projects that are much more serious and much more profitable than others. Also, it is essential to be able to differentiate between existing projects.


We have seen above the most profitable digital assets currently, which should simplify the choice. As for the choice of staking platform, Aqru remains the most interesting with its high returns. It also has piracy insurance and quickly processes payments from its users. This is so that the latter receive their interest on a daily basis.