#Staking #CryptoLingo
Investing in crypto is probably new to most retail investors and many don't know where to start or what apps to use. Would love to hear about some of your horror stories and pitfalls so that the community as a whole can learn from other people's mistakes. No sense reinventing those pitfalls ...
The Breakdown:
- "Staking is the process through which a blockchain network user 'stakes' or locks their cryptocurrency assets on a network as part of the consensus mechanism, thus ensuring the security and functionality of the chain." - Cryptopedia
- This is essentially everyone putting money into a bank's savings account (validator node) so that the bank can invest that money to make more money (proof of stake to validate and earn more crypto) that they then pay back as a small percentage interest payment.
How do I find staking opportunities?
- "Staked assets are usually held in a validator node or crypto wallet, and in order to encourage staking most projects reward the holders of staked tokens with annualized financial returns, which are typically paid out on a regular basis." - Cryptopedia
- I personally use Coinbase and KuCoin, but there are a number of options ... I would really appreciate you sharing any of your favorites in the comments!
What should I know about Staking before investing?
- Staking allows for you to get a guaranteed % return on your money that is being staked via cryptocurrency or token
- "On a Proof-of-Stake network, staking pools allow multiple cryptocurrency stakeholders to combine tokens in a collective pool in order to secure the benefits held by a larger, collectivized network stake." - Cryptodiea
- Essentially the more cryptocurrency being hoarded/aggregated the higher chance to validate a new block and earn more cryptocurrency rewards ... this could have ramifications later
What are the downsides of Staking for investing?
- Each staking opportunity will have its own policies for staking requirements and withdrawal restrictions ... much like a regular savings account.
- Cryptocurrency is very volatile and so while the money is locked up for staking it is possible for the value of the cryptocurrency to go down ... much like investing in a Dividend Trap
Resources: Investopedia and Cryptopedia / Video: https://www.youtube.com/watch?v=krRcn8TIMFQ
P.S.: Where do you stake your crypto?
#CryptoFinance #EarlyAdopters #GrowthNotGreed
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@GetSlade You know I'm good w/ Chris over doc 😜Hope you have a wonderful day too!! Hope Crypto becomes the next shift in user application and the conversation shifts from strictly currency to broader use applications.

Damon Gwinn@damondamnit
Thanks for these postings, it’s simple English for a simple Georgia boy.
S
I had a shower thought last night: the next Rockefeller (evil rich family) is probably going to get rich from crypto. Crypto reminds me of the gold rush

@ctsshah ty for sharing.... my husband talks about staking but never explains it....

@damondamnit i'm just a simple guy myself
@A007Kenny being a teacher doesn't pay the bills sadly ... the education system needs more competitive pay. Sadly celelbrities, athletes, politicians make crazy money and yet the people we entrust to teach future generations get pennies by comparison

@sheenhart lol this is probably true, but I was reading info about Crypto Charitable Giving and it is attracting new types of givers so I am hopeful!
@janelleb2585 well hopefully I can teach you some basic lingo and get you up to speed!! Appreciate you reading/watching.
B
Crypto and charity is an interesting concept. There have been quite a few attempts at it. I saw one the other day call Elongate. It's a token that's donated millions of dollars so far and was at Dubai for the crypto expo.
If you're interested in charity baked into an ecosystem, Elongate is an interesting one. Elongate.cc is their webpage.

@smartereveryday appreciate that, will add voyager to my list. I think I am getting to the point where I want to cap off Coinbase. I'm now venturing into Gemini this month and then plan to add BlockFi.
@Broseling So I looking less for a blockchain doing charitable giving but more tax efficiency through my Donor Advised Fund. So crypto is treating as property and so if I hold it for >1 year I can th…See more

@iCrushAverages woof!
@vbtiger16 so the ones I use are on Coinbase for ETH2 and ATOM. I've been happy with those. I have some with ALGO but got rid of Tezos this weekend and split between ETH2 and small amount into $SHIB

@thepetrilli84 😁
@Mrsstreeter You are welcome, can click on #CryptoLingo to see all the past ones or go to my YouTube the platlist link is here https://www.youtube.com/watch?v=G3rrb7gIjMc&list=PLn0fZqMvSiYB5a0KPvgvMYFzYqmA6aK6F

@wtobakos 😁💙good morning! Hope you have a great day

@ctsshah are you saying you are staking ETH2? I have some of that, maybe I should see about that.

@vbtiger16 yup I do ETH2 on Coinbase

@ctsshah ok yeah I need to buy more to qualify..hmmmm

@vbtiger16 oh I didn't realize there was a minimum. When I applied and got approved I didn't see a minimum and they were offerring 5% ... now it is down to 4.5%

@vbtiger16 hmm weird. is voyager’s “token” actually a stable coin or is it a regular cryptocurrency? A lot of accounts have a stable coin that you can park your money basically just like a normal savings account and $1 stable coin = $1 USD. So it doesn’t gain value you just get the 6-8% interest rate. BlockFi you can get interest for $BTC and $ETH that does gain value. Celsius also gives interest

@sydward ummm not sure it calls it a native utility coin...but it does go up and down (mostly down) in price

@ctsshah wow Voyager doesn't offer that much it's only 1.5%

@sydward I mistyped it's a token not a coin

@vbtiger16 So it won’t let me attach the links because it violates community guidelines but type into google blockfi and Celsius interest rates.
Keep in mind that the higher interest rates that are 8% are stable coins, but they offer 4-6% on the popular crypto like $BTC $ETH $ADA etc