Introduction: the Basics & How To Do it
With the steady increase of crypto staking’s popularity in the past couple of years, few people will stay indifferent to it. If you plan to stake cryptocurrency in 2022, it’s crucial to know the ropes or at least the basics of this model.
Staking is different from mining in many ways. First, it’s based on a proof-of-stake, not a proof-of-work model. In mining, a person who solves the computational equation first, will earn cryptocurrency. This means that a lot of energy is wasted by computers trying to solve the puzzles. The proof-of-stake algorithm, however, involves setting aside a certain amount of cryptocurrency assets in a blockchain. The more you stake, the more chances you have to become a validator to order transactions and create new blocks.
Second, you don’t need expensive equipment to start staking and thus, more people get the chance to participate. Third, staking our cryptocurrency means stronger immunity to centralization – this model naturally leads to more nodes in the network than the PoW algorithm.
You might have heard about crypto from your friends or teammates but haven’t staked yourself on anything yet. Why? Probably because you don’t know how to stake coins on blockchain. Once you do it once and see how simple it is, especially with platforms like MyCointainer, you’ll never stop staking. Here are the basic steps:
- Buy a PoS cryptocurrency. Not all cryptocurrencies offer staking, and here are some of those that do: Cardano, Polkadot, Solano. Find more assets on MyCointainer staking platform. Click on More information & details to learn about how the cryptos work, the rewards you can get, as well as the project and future plans.
- Join a staking pool. Staking can work differently, depending on the cryptocurrency, but most investors use staking pools. This allows them to “club together” and get a chance to earn better rewards. Some of the things you should consider before joining the pool include reliability, fees and size. The fees usually range from 2% to 5%. The size matters because if the pool is too small, there’s a low chance of getting validated and earning any crypto. However, if you join a larger pool, your rewards can be tiny. In most cases, the mid-sized pools would work best to stake cryptocurrency.
Don’t forget that on MyCointainer crypto platform you can not only stake but also keep your assets in a wallet and earn rewards simply by that. No need to lock your coins or worry about joining any pools – just passive income you can track in your mobile app from anywhere you’re at.
Will you earn money from staking? This question is most reasonable – what’s all the hustle about if it doesn’t bring you any profit? Even if staking requires much less effort than mining, you still have to spend your time on it. Staking crypto is your form of passive income, and it takes time to accumulate. Sure, if you’re risky enough, you can win big – the huge volatility of crypto assets allows you to do this. However, you should also be ready to lose big, due to, again, sharp fluctuations of the crypto market.
Also, crypto staking can seem a bit slow at the beginning and your rewards will look not that impressive but the more you stake, the more you win. As a newbie, bear in mind that some crypto currencies can be staked with minimum fees or completely for free. This will give you a chance to join staking at a minor expense.
Start at a free crypto staking platform like MyCointainer where you can simply buy assets and store them in your wallet with minimum or no fees. It’s also crucial that the fee is deducted only when you get your rewards. For example, NEM and Peercoin don’t have any reward fees.
In the era of remote work and flexible working schedule, it’s natural to be able to stake your assets, get notified and track your rewards from a mobile app on your phone. Make money with a crypto currency wallet app like a pro – from a coffee shop, a bus station, a bench in the park, etc., Take your time and swap your coin with another currency or other tokens of cryptocurrencies. Staking on MyCointainer app is even easier than in a desktop version. For us simple means efficient. The less time you spend on regular activities, the better.