#An Introduction to Staking and Its Benefits with Lending Platforms

Staking coins is a great way to generate passive income while still keeping your capital liquid. The concept of staking is similar to mining cryptocurrency, in that it secures the network and generates a small amount of coin in the process. While mining requires a lot of expensive hardware and electricity, staking does now. However to get good staking rewards, the more coins you have the better. In a way the value of your coin stack is similar to the value of mining equipment.
We at Crypto Cash Flow have experimented with staking numerous types of coins and continue to research new coins all the time. We have primarily focused on lending platform coins to stake as they tend to appreciate in value the greatest, especially with the current lending ICO trend going on right now. But there are also coins designed specific for staking, and we will examine those more in a future post.

Its an important factors to consider not only the rate of staking rewards but also the future price of the coins you want to stake, because this is primarily where you will increase your wealth with lending platforms, especially in their early phases after launching post ICO. For predicting the value of the coin you want to stake we use a combination of fundamental and technical analysis. Fundamental analysis looks at the pros and cons of the company attached to the coin. Technical analysis looks at how the coin is performing on charts in various time frames. It’s also important to realize the more coins you stake the greater your staking rewards will be and the faster they will come.

Staking lending coins can also be used as a bonus tool in your overall reinvestment strategy. Often times lending platforms will pay out in USD. So if the coin used in the lending platform is trending up, you can transfer your USD into the lending coin in order to get additional gains from your lending investment that can be substantial. But if the coin is trending down it can also work against you, especially if you are impatient and do not want to wait for the price to go back up, or if the price never goes back up. While most lending platforms only pay between 1 and 1.5 percent, the coins themselves can increase in value significantly greater, sometimes as much as 50% in one day! Although if something happens with the platform to cause FUD, fear uncertainty and doubt in the company, then the price of the coin can also drop as much as 50% in one day, or even more. If the company is good and the FUD and unsubstantiated though, this can be excellent opportunity for the bold to buy up coins for cheap and stake them until the price raises a significant amount to make them worth selling for a profit or doing a reinvest with, or both.

So a good strategy can be to transfer your daily payments into the platform’s coin and then stake them for addition gains while waiting to do another reinvest. Its often better to wait until you have enough to reinvest into a higher investment bracket for greater percentage returns, and in the meantime staking the coins can add a small bonus to your coin stack. But its important to remember while staking the coins can be profitable, the main profit comes from the coin’s price itself going up in value. And usually the coin’s value will only trend upward for a short amount of time. And overall you will typically get far better gains by using the power of compound interest through reinvesting with loans rather than just staking the coins.

One example of a coin we are staking is Credence Coin. It can be purchased relatively cheap as the lending platform’s website has not been launched yet. So while it is a gamble to purchase a coin for website that has not launched, because it is a risk that the site may never launch, it can be highly rewarding when the site does launch. Often there is a risk to reward ratio that can be taken advantage of by the bold investor to return gains, and we think this is one investment that certainly promises tremendous gain! And the staking rewards are quite nice as well!

This is an example of staking wallet for a coin used in the upcoming lending platform Credence Coin. The crossed mining pick icon represents a staking reward. Another great coin to stake is Regal coin. Regal coin was launched about a month and half ago and has has some glitches in their platform they have been trying to fix since day one. While they are making progress, they had to lock some of the first users accounts due to a coin balance issue, and some of the accounts are still locked today. Nonetheless the coin has performed extremely well for us in the pass due to it’s relatively small amount of coin supply, and it being one of the first company’s to challenge Bitconnect. We feel that once the company fixes its issues and unlocks all of it users accounts, the coin price may bounce back to over $100 from where it is now at $46. So we are taking advantage of the FUD, and putting our daily interest payments into Regal Coin, that we are then staking until the price moons again. And in the meantime, the wallet produces frequent, albeit small, staking rewards. Another perk is Regal Coin uses an x11 script making it very fast to transfer between wallets. Also it has a very nice, colorful design, that has to count for something.

This has just been a brief overview of lending platform staking. We will do more updates in the future of how the different lending platform’s wallets perform and what type of interest they pay monthly and yearly. We will also be doing technical and fundamental analysis of how each coin’s price is performing and how we feel it will perform in the future. So be sure to come back for more staking updates to the Crypto Cash Flow!