Crypto Academy/Season 3/Week 1-Homework post for @imagen//Staking by @ebiis.
Hello steemitworld, what a great feeling to be on this educative platform once more and my warmest greetings to @imagen.
1] Name any two platforms where you can do staking explain them and indicate which one is more profitable according to your opinion.?
Staking in cryptocurrency involves users on a blockchain network locking up their funds in order to earn rewards.
COINBASE EXHANGE : was founded in 2012 in the United States of America by Brian Armstrong and Fred Ehrsam, also supported in over 102 countries and about 73 cryptocurrencies on the exchange with about 15 million active users.
Coinbase also operates Coinbase pro for advanced traders with advanced chartings. Coinbase is backed by insurance (federal deposit insurance corporation) and has never been hacked.
Stakable assets here include ethereum, cosmos, tezos etc and staking fees is 20% -25%.
Poloniex exchange : founded in 2014 and launched in Delaware by Tristan D’agosta and supports over 187 cryptocurrencies. Poloniex was acquired by Circle a digital and financial service in 2019.
Poloniex stakable assets include WINK(WIN, COSMOS(ATOM), TRON(TRX) and its staking fees are 0%-20%.
Active users of Poloniex is around 140,000.
advantages of Poloniex exchange
1)Users earn passive income by lending out their crypto asset with generates interest.
2)Poloniex offers margin trading support.
disadvantages
1)Poloniex has been hacked in the past.
2)Fiat currencies are not allowed.
Comparison between Poloniex and Coinbase exchange
a)Coinbase accepts fiat currencies but Polniex does not.
b)Coinbase trading fees is about 3.99% and trading fees for Poloniex exchange is about 0.125%.
c)Coinbase staking fees is about 20% to 25% and Poloniex exchange staking fees is about 0% to 20%.
Poloniex is more profitable to me because it provides flexibility when it comes to staking in a sense that when you stake your asset for a fix period of time along the line you can be able to withdraw the asset and trade with it.
2] what is impermanent loss?
Impermanent loss occurs when a trader deposits his/her token in a liquidity pool and the token reduces in value after depositing, the value of the token before it was deposited minus the value of the token after depositing is the impermanent loss. The bigger the change in reduction value the bigger the impermanent loss and is largely caused by volatility in cryptocurrency trading. By providing liquidity through stable coins impermanent loss can be minimized.
3]What is DPOS?
DPOS: meaning delegated proof of stake was developed by American software developer DANIEL LARIMER in 2014, dpos is a consensus mechanism where stakeholders of a network vote and elect delegates who will validate block or maintain the network security, delegates have to convince the stakeholders in order to earn their vote, the delegates are known as witness and they get rewarded for validating blocks or transactions.
If delegates act dishonestly the stakeholder can expel or remove the delegate and replaced him/her with another person.
In dpos the power of votes is according to the number of coins staked. Tron, Steem, Ark, Bitshares make use of dpos.
Hi @ebiis. Thank you for participating in Season 3 of the Steemit Crypto Academy.
Your work has major shortcomings in terms of the information you provide, it lacks to present the APY or APR rates offered by both platforms to users who decide to do staking, in addition, a brief description of how to access them. it was necessary to complement your post. This observation is equally valid for questions 2 and 3 which present a lack of relevant information.
I expect more effort from you and wish to continue correcting your next assignments.
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