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CTSSHAH
@ctsshah
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#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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