Are you looking for a new way to make passive income? There are multiple methods that you can employ but one of the most outstanding is staking. This means that you commit your coins to help with blockchain-related transaction processing for a reward. It is simple and you can get started in only three steps.
What is Staking?
When blockchain technology was discovered, the core goal was to help decentralize the services offered by banks. By shifting the transactions from centralized facilities, such as banks and credit card companies, it means that there are no officers or managers to handle the transactions. So, how are they processed?
In blockchain networks, transactions are processed by nodes or computers spread in their systems. This process of validating transactions is referred to as staking. First, you need to get the preferred coins. At this point, you also need to compare crypto wallet vs exchange as your storage for cryptos.
To make passive income through staking, you lock your coins to the blockchain network to be used to validate transactions over a specific period. In return, you are rewarded with a percentage of the fee that people pay to use to run transactions. We must insist that this is only possible with the proof of stake (POS) crypto coins. Let’s highlight some benefits that come from staking:
- You generate passive income.
- Does not require specialized equipment.
- It is pretty easy because no special setup is needed.
- You do not sell your coins.
- Eco-friendly.
How to Start Staking in Only Three Steps
Staking is lucrative. The fact that you do not need to sell your coins to start making passive returns makes it even more attractive. So, how do you get started? Here are three main steps that you need:
Buy Crypto Wallets
The first thing you need to do is acquire an appropriate crypto wallet. The wallet is primary to the process of staking because it holds your coins before and after the staking phase. Here are some characteristics of a good crypto wallet:
- It should be easy to use.
- Designed by brands that are known for their commitment to quality.
- Difficult for hackers to break and steal your coins.
- Good examples of crypto wallets to consider are cold wallets, hot wallets, and software wallets.
Select and Buy the Preferred Coins
There are so many crypto coins out there, but not all of them are stakable. You can only stake the coins that are based on the proof of stake (POS) algorithm. This means that the coins are native to a blockchain system that allows users with some stake to act as nodes.
Let’s take the example of Cardano (ADA), which uses Ouroboros proof of stake protocol. Here, all the transactions are processed by users on the network. Other staking coins you might want to consider include:
- Ethereum (ETH).
- Polkadot (DOT)
- Solana (SOL)
Send to a Good Staking Pool
This is the last step, and decentralized finance (DeFi) platforms have simplified the process so much. Instead of trying to stake from your computer, working with a DeFi is pretty straightforward. All that you need to do is select the preferred DeFi platform, fill out a short form, and send your coins. Then, wait for the returns to flow into your wallet.
Staking is an awesome method of making passive income and many people love it because it is easy. You can get started in only a few minutes using the three steps outlined in this post. Remember that you should only work with the best DeFi platforms to be sure of getting returns flowing back into your wallet.
One of the top options today is hi. To join and staking right away, head to WhatsApp or Telegram and type hi to create an account. hi allows you to earn up to 20% of the staked amount every week.
