Contest!!! Benefits the staking of Cryptocurrency by @christnenye
Hello everyone, welcome back to my blog. As always today I want to make an entry to the contest topic benefits the staking of Cryptocurrency organized by @cryptoloover.
Staking is same as depositing cash in a savings account for the cash to yield interest. In staking we put our digital assets to work without selling and earn passive income. While staking crypto we tend to have potential of earning passive income as same time support the network.
Everything in life is risk. We all deposit our money or assets in bank for safety having in mind that accidental hazards like theft, fire outbreak or lost might occur but we still take the risk to put our money in the bank. This same risk is applicable to investing digital assets into cryptocurrency.
When investing in cryptocurrency I always feel comfortable because I know I will either gain quickly or at the long run. Investing in cryptocurrency to me is having a long term saving of digital assets that will eventually be of greater assets to me.
Staking and investing in cryptocurrency are two distinguished ways to earn returns from the crypto market, but the returns are of different approaches.
| Stake | Investing |
|---|---|
| Staking involves HOLdling different cryptocurrencies in a digital wallet to earn rewards also support network's validation and security | Investing means buying and holding a particular token or different tokens with aim of making profits when the price appreciates over time. |
| Staking in cryptocurrency can yield lower but more predictable returns over time | investing in cryptocurrency have the potency to yield high returns but with higher risk. |
| Staking in cryptocurrency deals with having less liquid since it's being HOLd over a certain period to earn rewards. | investing in cryptocurrency deals with having more liquid, as I cestors tend to sell their holdings at desired time. |
| The risk in staking cryptocurrencies are less as the rewards are earned based on the amount of cryptocurrencies HOLd in the wallet | the risk in investing cryptocurrency are very high because it has potential for price fluctuations and has market's high variability. |
I do stake at both sides but the number of Steem token which I stake in Steemit platform is higher than the one on my crypto exchange platform.
Reason while I stake more in steemit platform is because;
Long term commitment: I prefer staking here on steemit platform because staking outside the platform always make me withdraw my token once there is little interest.
Enhanced security: Steemit has high security features that makes it reliable and enhanced to stake Steem token. The probability of theft, lost is minimal.
Curation reward the higher the staked token here on Steemit platform the higher the curation reward when one votes members posts.
Just like depositing money into savings account for one to benefit the interest over time, staking cryptocurrency has same benefits of one earning rewards over time.
Some listed benefits include;
- staking cryptocurrency has lucrative returns or yields.
- staking cryptocurrency comes taking part in boosting the blockchain network's security and efficiency.
- Rewards in staking cryptocurrency is considered to be a solid way to put inactive crypto to use for the long term.
Overall, staking cryptocurrency comes with holding crypto to earn rewards over a long time and it support the network. On that note I will like to invite @dorothy213, @khorkhar43 and @mdshoshan91221 to participate in this contest
Dear @christnenye Thank you for sharing your Quality Blog with our community. Your Post Information has been given below:
Try to engage with other users and leave valuable and relative comments on their posts.
Please increase your voting csi by supporting other user through your vote and comments.
Thanks for the review, I will adhere to your recommendation.
You have explained the difference between stroking and investing very nicely. It was really admirable. Other topics are presented very nicely. Good luck to you.
Thanks dear friend.