Staking is a source for Passive Income
Crypto is not just about trading instead there is a lot that we can do to generate some revenue sources. Undoubtedly trading is 1 of the segments within crypto that a lot of people do and they make good money. Trading is one of the common activities across markets where many traders are doing it regularly to make some returns but Crypto is slightly different this way. You can generate some earnings sources in this market without even trading and staking is certainly a good option to explore.
What is Staking
In simple words staking means depositing your crypto in some platform. It follows the same principle as we deposit money in the bank and we are paid interest till the time the funds are with the bank. In the same principle when we deposit our crypto on certain platforms then accordingly we are paid returns in the form of the same or different coins just for keeping the deposits on. There is nothing that we need to do except keep the deposits with the platform and this is what we call staking. This is a great option to go with where our crypto will work for itself and sometimes these rewards can be significant depending upon the coin and what platform we stake on.
As I already mentioned it is a good option for passive income but we also need to understand the risk factors. The risk is involved because we give the control to another entity and if something goes wrong then we might lose the funds so this is why there is a risk. It's not just crypto because this type of risk is also involved when we go with bank options. After all, if things do not go as planned then the bank will also not pay us back. Different countries have different rules but we just can't deny the fact that every investment comes with a certain risk however the risk probability is quite low.
I am a strong believer in a stake and earning because I believe this way we can put our crypto to work and the right methodology is when we earn money without doing anything and our money itself starts earning money. With the concept of a steak and earn the same principles are followed and we can earn money through the money.
Many platforms are offering the service and considering the risk we can diversify however I believe taking a certain amount of risk is also required to grow the holding else keeping it idle will reduce the monetary growth but again this is not financial advice that I'm sharing here and before you choose to go with please go through your research. There are so many exchanges offering this functionality and you can choose the one that is more reliable but at the end of the day self custody is always recommended however that is something that doesn't give any returns back.
Thank you so much for stopping by and if you like my article please vote and share your thoughts in the comments section.
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Staking is a form of usury that is haram for muslims so i don't like staking, thank you for explaining it so well.
I don't get it. How can a technology fet related to religion an dif that's the case then yoy can't even have SP because its alsk staking where you earn apr aka interest
Good explained brother. I hope you write articles like this in the future.Thank you.
Thanks
Staking is very important when it comes to passive income. Through this, there is a huge benefit of earning in active and passive ways at present.
Agree. thanks
Indeed you are correct on that, when we stake we make passive income, it's a good way to contribute to the ecosystem and make our money work for us as well.
passive income is good idea
Your article is very good. Nicely explained about Staking is a source for Passive Income. I hope you write articles like this in the future.Thank you.
thanks