Hey crypto friends!
Today, we’re diving deep into the fascinating world of staking! If you’re new to crypto, we have all the answers to your burning questions about staking, helping you to understand if staking crypto is safe, how to earn passive income with staking and how to contribute to blockchain security.
Join us on this exciting journey and discover the incredible potential of staking.
What is staking crypto?
Crypto staking involves locking your digital tokens into a blockchain network to earn rewards, typically a percentage of the staked tokens. This process also grants token holders the right to participate in proof-of-stake blockchains.
Suppose a blockchain network offers a 5% reward for a one-month staking period and you stake 100 tokens, you’ll receive your staked tokens back plus an additional 5 tokens as your reward after the month is over.
How does crypto staking work
Crypto investors have several ways to stake their tokens, generally falling into two categories: active and passive.The process of staking crypto can be split into two main categories: Active and Passive Staking
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Active crypto staking: means locking your tokens to a network for the purpose of actively participating in the network. Active participants may validate transactions and create new blocks to earn token rewards.
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Passive crypto staking: involves simply locking your tokens to a blockchain network to help keep it secure and operating efficiently. Passively staking crypto is not time-consuming, but it generally yields lower token rewards than active participation.
Types of Crypto Staking
1. Delegated Staking
– Stakers delegate their staking power to a validator node operated by someone else.
– Rewards are shared between validators and delegators.
2. Pool Staking
– A group of coin holders combines resources to compete for staking rewards.
– Rewards are shared proportionally among pool members.
3. Exchange Staking
– Some cryptocurrency exchanges offer staking services, allowing users to stake their holdings directly on the exchange.
– The exchange manages the staking process and distributes rewards to participants.
4. Liquid Staking
– Users receive representative tokens in exchange for staking their crypto.
– These representative tokens can be traded or used, providing liquidity.
Custodial Staking vs.Self-Custodial Staking
– Custodial Staking: Requires transferring tokens to a staking platform.
– Self-custodial Staking: Holders has total control of their funds by keeping them in their self-custodial wallets
How does staking crypto with Klever work?
If you want to stake cryptocurrency using your self-custody wallet, there are many options available on the Klever Wallet app.
Currently, users can enjoy staking KLV, staking KFI tokens, staking TRX,DVK, DOT, BTC, AAVE, and many others, with total safety, and while strengthening the networks, they can generate extra money with their portfolio.
*Before you start the staking crypto process, make sure you have enough balance of the desired crypto.
If you need to buy crypto,there are many options available inside your klever app. You can buy crypto with a credit card, or even pay for crypto with bank transfer, or still use the debit card saved on Apple or Google Pay.
If you already have some tokens and want to exchange them for others, you can safely use the swap tool inside the wallet and enjoy swap tokens instantly and with low fees.
Now that you already have your funds, let’s proceed to the staking token process:
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Select the token to stake on your portfolio
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Tab on the staking option
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Select Staking
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Insert the amount you want to stake on the network. Pay attention to the minimum amount.
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Review transaction data and hit the confirm button
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Earn passive income by claiming the free crypto generated, by following the same steps of staking crypto, but hit claim instead of staking, when you see it on the screen.
Easy, right? Staking crypto is like putting your money to work for you while generating more money for you.
*Remember that the process to stake KleverChain native tokens is pretty much the same for every token. If you don’t have the wallet installed in your mobile yet, download the klever app right away.
You might find different names for the staking process, depending on the protocol you choose. Staking TRX usually involves freezing the tokens and, in other networks, users can delegate the staked tokens to a node, and also receive rewards by doing it.
This change is due to the consensus mechanism of the blockchain behind the token. Proof-of-staking, delegated proof-of-stake, it all changes the mechanism of the staking itself.
So.. Is staking crypto safe?
Crypto staking is safe when you choose a reliable platform to lock your assets for a while. Always look for a safe crypto wallet or a reliable exchange platform. Never invest money you can’t afford locking for long periods when staking crypto.
Pros and Cons of Staking Crypto
Understanding these pros and cons is crucial for making an informed decision about whether staking crypto is the right option for you.
Pros
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Passive Income: Earn interest on your long-term crypto holdings.
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Reward Appreciation: Rewards might increase in value over time.
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Network Security: Helps make the network more secure and efficient.
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Active Participation: Get more involved in the blockchain network.
Cons
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Volatility: Staking rewards and tokens can lose value due to price changes.
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Inflation: More rewards can lead to more of the cryptocurrency being created, reducing its value.
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Security Risks: Attacks on the blockchain can affect your staked crypto.
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Regulation: Staking is not well regulated, which can pose risks.
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Technical Knowledge: You might need advanced skills to stake successfully.
Your increased involvement with a staking platform or blockchain network makes crypto staking riskier than simply holding your tokens in a safe multi-chain wallet.
Is staking crypto worth it?
Staking crypto worths for money you can afford for a long period. If you’re looking into long term strategies of obtaining rewards, yes, staking crypto is a worthy option for you.
If you’re looking into fast return, staking crypto can be challenging and a patience test, after all.
Staking Memecoins KDA and Earn Rewards
You can stake Memecoins KDA to earn rewards. Visit official pages to get more info about the projects and start making money by staking memecoins today. Projects like
PHARAO, GOHAN, KUNAI, BabyPengoCoin and Motokoin are rewarding users that stake their assets using the Klever Wallet. Check it out!
Staking crypto is safe when doing your own research, trusting on reliable crypto platforms and seeking long-time results. Never share your private keys or your 24 seed-phrase.
Enjoy staking crypto with a safe multi-currency wallet like Klever Wallet and notice the difference. Start earning crypto passive income today and joy the web-3 revolution.
