Crypto Academy / Season 3 / Week 1 - Homework Post for [@imagen]―Staking

Thanks to professor @imagen for this wonderful lesson about "Staking". This lesson cover staking and doing some research online I learned a lot about staking on different platforms. Now, I am ready to complete my homework task. Let's get started:

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1.) 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)

I research and decide to stack in two wallets: Trust wallet and Klever wallet. Let's start, I will show you how I stake there and I also let you know which one is profitable according to my opinion. Before starting I want to discuss a little about staking.

Staking

Staking means to lock a certain amount of coins and get a percentage to instate of locking those coins. Staking can be done by exchange sites like Binance, Coinbase, Poloniex, and Wallets like Trust wallet, Atomic wallet, and Klever wallet. APR depends on the staking platform.

Staking on Trust wallet

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I will show you step by step how I stake TRX on Trust wallet. First, download Trust wallet from Google play and open an account.

• Open your Trust wallet app and click Tron as marked on the screenshot.

• Now click these three dots More.

• You will see APR rate and Lock time, click Stake.

• Now it is time to enter the amount, I enter 25 and click CONTINUE on the top right.

• You will see this confirmation message click SEND.

• Staking on Trust wallet is successfully done.

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Staking on Klever wallet

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Now we will see staking in another platform. Download Klever wallet from the Play Store and create an account first.

• Open Klever wallet app and search for Trx.

• You will see a lot of options in front of you. Click STAKING.

• I want to stake all of my available TRX so I click 100%. Then click Next to proceed further.

• You will get this confirmation message click Confirm.

• After clicking Confirm it shows us Succes.

• We are done staking 24 TRX for 3 days with 6% APR.

Staking on Klever wallet is done.

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Comparison between Staking on Trust wallet & Staking on Klever wallet

Based on APR rate

The APR in Trust wallet is 0.74% on the other hand in the Klever wallet the APR rate is 6%. Which is very high compared to Trust wallet.

Based on the validator

On Trust wallet, you will get 5 validators but Kelever wallet gives you only 2 validators.

Based on minimum lock time

The minimum locking time on both Trust wallet and Klever wallet are the same 3 days.

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Klever wallet is giving 8% APR but on the other hand, Trust wallet is giving 0.74% APR. So, according to my opinion Klever wallet will be more profitable.

2.) What is Impermanent Loss?

By staking we contribute to the liquidity of the blockchain and earn rewards. If you stake Dollars or any stable coin then it is fine. But there is a case when you stake Altcoins. Because the price of these coins fluctuates a lot.

Source

Suppose the price of the coin was higher when you were a stakeholder, after a year of stake you get your rewards, and the number of your coins also increases but then if the price of your coin goes down then it will be an impermanent loss. This loss may be recovered as soon as the market recovers but you may have to keep your coin for a long time.

From the above incident, it is understood that we have to stake the stable coins instead of the altcoin. Because the value of the stable coin will not fluctuate. This will not be our impermanent loss.

3.) What is Delegated Proof of Stake (DPoS)?

Delegated Proof of Stake (DPoS) was developed by Daniel Larimer in 2014. He was also the founder of Steemit blockchain. It is the advancement of proof of work simply to transfer the voting power to users, others can vote on behalf of them.

Source

Delegated Proof of Stake (DPoS) is more decentralized and transactions don't depend on computing power and transactions are faster. DPoS is a democratic version of the PoS mechanism. The delegates are referred to as witnesses when the rewards received by the delegates then distributed with their respective selectors.

4.) Conclusion

Conclusion

Profit-making through staking is becoming much more popular day by day. It is very easy to earn rewards by sticking. Different platforms are giving us this facility. Before staking, he has to do very good research about the platform, otherwise, he may fall into the greed of rewards and face loss.

We need to choose coins wisely to avoid impermanent loss. It is best to stake stable coins. Then there is no fear of impermanent loss.

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Thanks for patiently reading my post. I hope you enjoy it.

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Best Regards,
@masumrbd