Hello..!!

My Dear Friends
This is @ns-porosh from Bangladesh 🇧🇩

How are you all? I hope you are well by the grace of God.I am well with your prayers and mercy God's grace.At first of all thank you to the sir @imagen. Your lesson provides a lot of information on homework tasks.

Introduction

Staking is a process where crypto investors use their deposited cryptocurrencies for interest and profit. For this, investors store their cryptocurrencies in a blockchain system. The nodes that are used in the thick process to maintain block mining create a network. Which creates a 'safety net' for thick network activity. As this method has proven to be efficient, the method of staking in various systems is becoming very popular.

What is staking?

Staking is a process where an investor deposits their crypto assets in a blockchain system. This process allows investors to earn rewards by saving their assets. The staking process has been recognized or speculated on various websites due to the fact that this process generates more revenue from cryptocurrencies. Investors need to block their assets in a blockchain system for different periods in order to make a lot of profit in staking. However, investors need to actively participate in the accumulation of assets in the blockchain because the growth of the block depends on the residual assets. For example, if we deposit our money in a savings account in a bank, then that bank uses our money and they make a profit from it by lending it to other customers.The bank authorities share the profit with us.The staking process works much the same way.

Staking offers much higher profits than most traditional banks in the world. This staking is becoming more and more popular in the world as the amount of offers is much higher in staking than traditional banks.

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

I will discuss two platforms to answer the professor's first question in the homework task. One is KuCoin and the other is coinbase. Below is an explanation and comparison of KuCoin and coinbase.

Coinbase

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Coinbase is one of the largest digital asset platforms or cryptocurrency exchanges where users or traders can trade 50 more cryptocurrencies, including Ethereum, Litcoin and Bitcoin. Like other trading exchanges, Coinbase is capable of buying, selling and converting cryptocurrencies. Coinbase also shows the current cryptocurrency real-time prices and trends like other stock trading applications. Coinbase even displays a portfolio of wealth and industry news. Coinbase cryptocurrency investing for regular investors, an advanced trading platform, companies provide a single wallet for account protection.Coinbase offers a competitive fee structure compared to the market price which consists of a 0.5 percent premium over the market price and the amount of the transaction. Coinbase even provides its own stable currency, the US dollar. However, Coinbase has a problem. The disadvantage is that Coinbase users do not have direct access to the accumulated funds. We also do not offer customer support services for Coinbase users.

History of Coinbase

Brian Armstrong founded Coinbase in June 2012. Coinbase became the largest cryptocurrency exchange in the United States in March 2021 through trading volume. Coinbase is a fully regulated and authorized cryptocurrency exchange. Coinbase has received customers in every state in the United States except Hawaii. Initially, the coinbase started with the bitcoin business. However, later other cryptocurrencies were included in the coinbase. It is currently one of the largest digital exchanges in the world.

How to Stake using Coinbase:

• Be the first to enter this website.website
• Then create an account.
• Deposit assets later.
• Then purchase or transfer assets.
• Wait patiently for the last one.

Advantages of Staking on Coinbase

• Coinbase offers users a lot more protection because only trustworthy coins are allowed on this platform.

• About 50 other cryptocurrencies can be traded on Coinbase.

• Coinbase has more than 13 million active users worldwide.

KuCoin

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KuCoin is a cryptocurrency exchange platform that allows users to share their various cryptocurrency assets without locking them using a soft staking mechanism. Now what is the soft staking method? Soft staking is a method that allows users to easily earn rewards without locking their cryptocurrency assets.

In fact this platform is an easy way to reward every user every day. For this the KuCoin exchange platform allows for flexibility and efficiency in compound and portfolio management. Traders pay a 5% -20% fee for stacking on the KuCoin platform.

History of KuCoin

Kucoin was founded in 2013 in Singapore as part of an eight-member executive team of Michael Gan and Eric Dawn. The goal of the founding team was to create a secure and standard platform where cryptocurrency transactions would be allowed without the comfort of users. Initially they traded with the following currencies:
Cosmos, Tron, Algorand, Ion, Energy, Tomochain, etc.

How to Stake using Kucoin

• Be the first to enter this website.website
• Then create a new account.
• Then deposit the assets.
• Then buy and hold assets.
• Wait patiently for good earnings and earn regularly.

How to staking work:

This process allows traders or investors to lock their cryptocurrencies in their wallets to win prizes. These locked cryptocurrencies are much more secure. Locked cryptocurrencies are a type of collateral. Stackers have the legitimacy of transactions on this platform and they will perform their duties honestly and diligently. If you make a mistake, you will be punished.

Advantages of Staking on KuCoin

• Trading fees for Staking on KuCoin are much lower.

• It is currently one of the largest digital exchanges in the world.

• KuCoin supports more than 200 coins.KuCoin offers users more options for stacking.

Comparison between Coinbase and KuCoin

Coinbase	KuCoin
Coinbase was founded in 2012 in the United States.	KuCoin was founded in 2013 in Singapor.
There are many countries in the world who do not yet know about Coinbase. Even so, the current Coinbase has more than 13 million active users.	KuCoin is used in countries larger than Coinbase and has more than 1 million users .
Accepts about 50 different currency coinbases.	More than 200 coins were accepted.
Coinbase's exchange transaction fee is much higher and Coinbase's staking fee is 20-25%.	KuCoin exchange transaction fee is much lower and its staking fee is 5-10%.
Coinbase's stackable assets are; Cosmos (ATM), Tejas (XTZ), Etherium (ETH).	KuCoin allows users to store their crypto assets without locking using a soft stacking system.

My opinion

By analyzing research and judgment I would say that KuCoin is more profitable for cryptocurrency trading than coinbase. So I decided to use KuCoin for cryptocurrency trading.The reason is that the transaction cost of KuCoin is much less.KuCoin offers staking resources and it gives me the opportunity to research other resources. Since KuCoin staking fee is very low and I as a trader prefer the platform with low fee so I chose KuCoin platform.

What is impermanent loss?

We know the crypto market is not stable. There are ups and downs in the crypto market.Impermanent losses usually occur in the case of liquidity suppliers. Investors who invest their coins need to be told to stack up. This makes it possible to maintain the demand for coins in the network. When a liquidity supplier deposits a certain amount of money in a liquidity pool and subsequently increases and decreases the value of the currency, if it withdraws the value of the currency, there must be a loss. Because as a result the market will become unstable. And the more volatile the market, the more impermanent losses investors suffer. Liquidity providers should therefore provide an accurate ratio of 50/50 on both assets. So that one resource is inadequate compared to another resource.

What is Delegated Proof of Stake (DPos)?

Delegated Proof of Stake (DPOS) is a process where a blockchain is verified. This process determines who will be the validator of each block in the blockchain and delivers what data should be added. It is a technology that works like a POS system that makes blockchain networks more efficient by changing the computational intensive excavation process. If a user sticks his coins, they combine to select a node or third party to make that user's networks more efficient. That is, which will have legitimacy in the blockchain network. The node that gets the most votes is selected. This means that you can vote for delegates in the DPOS protocol in order to vote for a particular representative by placing your currency in a step pool. The method of selecting checkers in this block is a democratic method.

Dan Larima invented DPOS in 2013 to solve problems plaguing Bitcoin's Proof of Work system.

How does it work?

Delegates have a transparent responsibility. These responsibilities include consolidating transactions, creating their blocks to legitimize transactions, and ensuring that their nodes are always open. And to solve the problems that arise in the national network. Delegates have a responsibility to distribute proportionately the block awards they receive to their constituents based on voter strength. Users who will vote for the delegates will be able to delegate their voting power to another user who will vote for the delegates. Because in most DPOS chains the ability to vote for delegates is accessible to all token holders included in the network.

There is no need for delegates to compete over a large part of the network, but delegates must compete for token votes. DPOS systems allow transactions to be validated. However, that permission is limited. DPOS systems eliminate some decentralization rather than gain efficiency because less work needs to be done in order for everyone on the network to have the same opinion.

Conclusion

From the lecture I gained a lot of knowledge about the following points.

Staking:Investors deposit or collect their funds in their wallets and wait for rewards. Fundraising requires staking to encourage and support security and management in blockchain networks and will be rewarded in return.

Impermanent Loss: Since permanent loss is a normal occurrence in DFI, a good way to reduce permanent loss is to avoid volatile currencies and provide liquidity only in stable coins.

DPOS:This is essential for a decentralized cryptocurrency network that plays an important role in achieving sensory dexterity in the case of a homogeneous method and system for components to reach a decentralized ecosystem.

Thank you very much Sir @imagen for this beautiful lesson.

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