STEEMCRYPTOACADEMY WEEK1, SEASON3, HOME WORK POST FOR IMAGEN// STAKING

Hello professor @imagen it's nice reading through your post at this particular time of asking, you did very well and I have learnt alot many thanks to you sir.

Research and choose 2 platforms where you can do Staking, explain them, compare them and indicate which one is more profitable according to your opinion. (Binace is not allowed)

Before I proceed to answering this question it will be important we know what staking is all about in a detailed manner, it's all about crypto staking for me it seems to be a kind of a trend emernating from the generation of what I call proof of work (pow) protocol in this case it is structured in a way such that the blockchain's is been validated on important transactions carried out on the block-chain.

Staking crypto entails alot it requires putting aside a concise number of tokens in this case it will be used to making a valid transactions on the block-chain, we also have a protocol called the POW it has a lesser energy intensity in this case it reduces the way is carried out on the block-chain, thereby keeping the blockchain safe and secured.

POW is adopted on many block-chain's including Etherium blockchain [ETH], as we all know it can't be an exception here it has adopted so many cryptocurrencies and it's growing rapidly. As the lectures goes on I will be explaining crypto staking in a more detailed manner and I will highlight the best staking opportunity.

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What is staking in crypto

Staking is more like betting, but in the world of cryptos is pretty different it involves buying and selling,bin these case some certain amount set aside thereby becoming an active nodes for network to operate, you as an individual holding various coins the person buying will be very important for the security of the network and every transactions will be facilitated.

If you stake there will be a room for intrest it's just like you playing your sports betting, when you place your bet you will find out that some certain bonus will be given to you staking is very much similar here. But in this case the rate is basically different it depends on several things including the way staking is been suplied and the demands too.

As there has been a growth toward the proof of work based network, there are now different ways of staking cryptos, all the ways have now come to lime light in this new phase groups can now stake you can call it staking pool whether you are a big or small investor you can initiate aim and thus have access to stake no matter how small your investment is.

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How does staking work

It is very important we know how staking is been done, before you stake you must own or buy a token in the network be it Etherium network or other networks. It is very important note staking will only be possible through a network that supports proof of work protocol, after you are done buying your token, you have to alone with the procedures of the developer of the network. If you want to stake it can be done in a manner of minutes remember you have to follow the instructions by your wallets.

Crypto exchanges expecially through P2P, have quicken the process of staking your token in this case you can form a group that is stake pool. The objective is the increase the profit that you guys will maximize in staking a particular token. If the coin you stake is high you will also increase the total the total number of transactions. In this case a particular nodes will be assigned in some sinerio it is based on the token that they hold. For the nodes if you hold a larger number of token you will receive higher compensation if you stake. This is basically the key reason people adopt staking pool.

Risk of staking/Benefits

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Due to the benefits attached crypto staking is now very popular in rescent times, the intrest rate you gain while you stake is about 6%, per annum given by a concise network on like the Etherium network [ETH], and the Ada [ADA], as much as 100%, are given by a smaller networks example we have the pancakeswap, [CAKE] and we also have another one called the KAVA [KAVA].

For the platform where I can do my staking I choose Trust wallet and pancakeswap

• For you to stake it's very simple what you need to do is to open your Trust wallet and select the token that you want to stake for example I want to stake Tron what I need do is to select Tron.

After you are done clicking on Tron since it's the crypto you have chosen to stake, the next thing you need do is to click on More so that another phase will showcase.

• Click on stake and choose how many token you wish to stake in the above image uploaded you can see that I choosed to stake 2 Tron, and my APR is 0.74%.

• In here your transaction will be confirmed and along the process a transaction fees will be charged, also network fees too will be charged.

• since the transaction is still confirming the Tron will still be showing a negative sign, when it's confirmed the sign will go away.

Staking using Atomic wallet

Atomic wallet is another wallet I will be using, although it is a Decentralized and it's very necessary I use it here. Making use ofbitbto doing your staking is very simple what you need to do is to open the App and explore it. Following the procedures.

• It's still the same procedure to staking Tron via trust wallet, open your App and click on Tron, choose it.

• Here your yearly stake will pop and in conjunction with your Available balance too.

• Here you can proceed to click stake, At this phase you can cross check just to making sure that everything is correct, you can also cancel your stake if you don't want again.

• After you are done what you need do next is to proceed thereby entering your password so that you can proceed with your staking.

• Your Tron will be frozen for three days after staking what it means is that you can't trade or do anything with your Tron once you stake with it.

• Now your staking request will be processed by Atomic wallet that's why I said every Decentralized wallets has its own procedure, here it takes 5 minutes.

• After which you will see a successful write up indicating that your Tron has been successfully staked.

• One important thing to note is that you can unstake your Tron, yes and in this regard you have to follow steps for you to be able to achieve that fate.

• When you unstake your Tron and you will collect the reward that it has generated for that period of three days, super interesting.

Explaining the both Decentralized wallets

For me the both wallets are very popular and important in crypto world today I have interacted with so many people and they tell me that Trust wallet is the best simply because it is very simple to operate and quick to access, but for me I think there are also other wallets which has great features too just like the trust wallet itself. Trust wallet has the proof of stake algorithm and it's very fast and efficient.

Tron is a top cryptocurrency with a proof of stake algorithm too and the Atomic Wallet allows you the investor to stake your crypto without any fees and receive rewards directly from validators, remember any wallet which does not allow the proof of stake can't be validated. I have already highlighted steps of staking Tron via atomic wallet.

The first thing you need do is to get TRON
that You can exchange from another asset or buy it with your local currency within the wallet, or you can also deposit through other crypto exchange wallets.

Comparing the both Decentralized wallets

Trust wallet	Atomic wallet
It has proof of stake algorithm and it's very fast and efficient	it has proof of stake algorithm and it takes just 5 minutes to execute transactions
It does not store your data, and one interesting thing is that you can choose your private key locally	It's exchange is transparent and it requires lot's of network fees to complete transactions.
It doesn't require lots of transactions fees, and it's profit per annum ranges at about 6%, and above	It's profit per annum isn't up to the amount trust wallet gives, but it's still encouraging though
Trust wallet is fast and efficient and it is a Decentralized wallet	Atomic wallet is fast and also reliable, it is also a Decentralized network
Trust wallet accepts staking pool, where people can stake in unism	atomic wallet since it's fast and reliable it also accept staking pool

Which one is profitable

I think using the both wallets are profitable since it's features are great, but for me doing my Staking I will go for trust wallet simply because of the intrest they offer per annum. 6% per annum that's massive

The both wallet are very fast in executing transactions and for trust wallet again their service charges are minimal and it's very eazy to choose your private key locally. If you loose your key definitely you loose the wallet, and you can create multiple wallets in trust wallet. Wallet1, wallet2, wallet3, and so on

What is Impermanent Loss

Impermanent loss in my own opinion can be defined as a procedure that is basically controlled by formular, that shifts the ratio of different assets in a particular pool thereby knowing the different prices.

The formula mathematically paves way for the market to function it is responsible for the various looses that is implemented, impermanent loss in this case comes to fruition when the mathematical formula tends to shift the ratio of the assets in a particular pool, just to making sure it remains at 50:50, this is the ratio intense of the value it provides the gain too from a particular deposited assets.

Explaining further let's say you want to develop a farm in binance smart chain, through Decentralized trading pool pancakeswap.

You have to make a choice in order to provide a concise liquidity through the trading pool CAKE/BNB, this is a pair you need to deposit the both token at the ratio of 50:50, although in this case you have to follow the block-chain requirement, remember yield farming allows CAKE token.

The next phase of what you need do is to try and connect your wallet to binance smart chain and you can thus exchange some BNB for CAKE, in this case your deposit making is or will be eazy.

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Here the price of BNB will be considered, let's say 1 BNB equals to 30 CAKE, token you will have to make a deposit of at least 5 BNB, and 130 worth of CAKE, into the pool. Then when the price of CAKE rises so many individual's will like to invest in it. The ratio at which you deposited will then make a split across the various assets.

Representation of impermanent loss

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From the diagram I have uploaded you will find out that there is a visual representation of IL, prices remains constant, here there is nothing like permanent loss, but if there is an increase in the price of a single assets the LPs will definitely loose it's value.

If the LP leaves the pancakeswap and along the way received a deposited liquidity, at this phase they will reap the real value of their holdings and it will be minimal, their BNB is been held in the CAKE wallet.

What is Delegated Proof of Stake (DPoS)

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Deligated proof of stake in a simple word has to be concensus algorithm , as we all know blockchain's are often faced with scalability issues, here andbthere. Different blockchain's such as the EOS, STEEM, and many others nowboperete through the Dpos, what this signifies is that there will be a high speed in the manner and way your transactions will be executed without been compromised. In proof of stake any user can stake their token and get return after sometimes.

Voting

In Dpos you have the right to vote and be voted for if you have enough voting power all you need do is to select your witness I can choose to deligate my power to someone else and he will vote on my behalf and I will get return in the end.

Voting is made according to your voting strength very important you need to have a greater stake in order for you to migrate to the top tier of witness.

Witness

Witness is structured at a certain tier of numbers all witness does it to validate different transactions on the block-chain in return massive gain is emernated from the transaction that is already carried out from the blockchain. They are equivalent to miners through the proof of work system.

Deligates

Deligates are sets of people who delegate their power/token to someone else to make use of then in respite to then in order to support the system protocol. In this case for you to deligate it's a willingly something you need to make up your mind to doing this, since you already know the benefits involved you don't have to be afraid.

conclusion

• You will agree with me that staking has to do with the proof of stake, PoW it all involves putting your crypto aside and by so doing you gain massively for doing that.

• Due to lots of benefits associated with crypto staking so many people have now bought the idea, and along this process you can do what I call staking pool.

• After staking your token will be frozen for some days, this means that for the period of time that your token is been frozen you can't do anything with it, you can't trade, or transfer it. It will remain static at that point.

• After you are done placing your stake you can still unstake it if you want, this has to deal with the Decentralized Wallet that you are using, what you need do is simple, just follow the steps that's all.

• Deligation has to do with you as an individual, if you deligate your token you gain some fantastic rewards in the end. The deligated token will work on your behalf, you won't be forced to make deligations if you know what is a stake you will shine in the end.

Many thanks to you professor @imagen your lectures is fantastic, and I have learnt alot from you hopefully in rescent times I learn more

Apart from the pictures i sourced all other images are mine

Cc:@imagen