How STAKING Works In Crypto – BENEFITS & RISKS Of Staking Crypto – Best Staking Rewards

what is crypto staking well let me put it like 
this the cryptocurrency world or the future of   finance is being built right in front of our eyes 
but they're also using a lot of new terminology   you could even say slang or you know just like 
in back in the old days when we had you know   the hedge funds come out and they would have 
to invent new words and if you don't know them   well then boo boo we don't know anything so i'm 
gonna really explain it in traditional terminology   and let me get right into it staking is nothing 
else then when you would go down to your bank and   you would deposit your fiat money your dollars 
your euro your pound your japanese yen and then   the bank would pay your interest that's what 
it is staking is nothing else than traditional   deposit bank deposits now it also goes further 
than that because what is that the traditional   banks did and do well they will use your capital 
to not only increase their reserves but they   will ultimately lend out your money and that's 
the funny thing right they are allowed i mean   things change over time but they're basically 
allowed to lend out somewhere between 10 to   some say now with the but you know with the 
monetary system around the world going crazy but   let's say a good 10 times they can lend it up 
so if you put in a hundred dollars they can   lend out a thousand dollars and we all know that 
when they give they lend it out they charge let's   say but we know much more than what you get so 
you deposit your money in the current economic   scenario we know you're not going to get a lot 
but you say you get a dollar and one percent   they're lended out your hundred dollars 
ten times at probably five to six percent   and they are reaping those rewards really that's 
how that works and not many people know that   but that's just that's just banking 
business pure banking business so staking   is exactly the same just that the rewards 
are much much higher and let's look at it   have you heard about the stable coins usdc usdt 
not a fan of that so much but we got the stable   coins back to the us dollar now you could keep 
your dollars in the bank account of your choice   but by the way that you also if you want to 
transfer more than ten thousand then you know you   gotta fill out paperwork and you know bank might 
call you and ask you know what are your intentions   and then you get maybe if your luck is 0.5 percent 
now inflation will ultimately anyway devalue   the purge chasing power of the money you have 
there but not only that you could have instead   of having your u.s dollars you just have them in 
stable coins in the usdc you could be earning 12   and you at any time can revert back the usdc to 
the usd fiat money and where you can get a half   a percent so why wouldn't you just take like i do 
i actually take 16 on my usdc and i stick on the   total platform but taking my usdc which i have a 
big part of is actually the lowest api or rate of   return you see some of the i actually only now 
i mean of course ultimate ethereum they're the   returns are not so big but i actually only try 
to find great coins market leaders of tomorrow   where i can earn anything between yeah let's say 
12 is the worst that's in polka dot and kosama   but up to 100 100 i even earned 140 percent on 
my umbrella tokens for a while and i'm earning   good 90 on my cake tokens combine it anyway i was 
asked many times to make a video on this and then   so i want to run through it i'm going to try to 
refer to traditional terminology as opposed to   trying to you know talk you know that new crypto 
terminology that you won't understand and then   i will introduce you to a new platform that 
i'm testing where i think that you can easily   it's much is as a good user interface a 
good user experience and where it's super   simple to stake but before we start i want to 
welcome you to crypto never sleeps if you're   new to this channel and you want to stay on top 
of the crypto world with them please hit like   smash subscribe so that you can be notified every 
time we upload new videos so that you can and this   is important protect your wealth preserve your 
wealth and ultimately also increase your wealth   my name is nico arachi and i am no one so if you 
are already a crypto investor staking is a concept   you probably heard about if you're new then you 
will hear about it often staking and farming yeah   farming is going a little bit out of trend 
again i was absolutely have nothing to do   with depositing money and river and earning 
rewards well it does but farming want a   traditional sense but staking is the way that many 
cryptocurrencies and this is the technical point   of it verify their transactions and it allows 
participants to earn rewards on their holdings   i'm gonna very briefly dig into very briefly 20 
seconds about crypto staking in the technical   aspect because there's so many other great 
videos where you can go and listen to them   you can listen to hours and hours and you still 
won't understand what it means right but anyway   so crypto staking is staking cryptocurrency is 
a process that involves committing your crypto   assets to support a blockchain network and confirm 
transactions now that's why i say you can go in   there and look it up really what that means within 
you know the blockchain space but in the end of   the day it's the same like when you go down and 
deposit your money in the bank and the bank will   you know they're allowed to use your deposited 
capital to work with and that's why you get   one tenth of what they make on your money staking 
however especially in these times can be a great   great way to use your own crypto to generate 
passive income especially because some   cryptocurrencies offer very very high interest 
rates for staking and even when we have market   volatility or even let's say you didn't get your 
coin at the lowest low but maybe you know god   forbid at the highest high but you know if we 
can stake it at 60 or 70 percent things are a   little bit easier however before you're gonna 
get started i ultimately advise you to fully   understand how crypto staking works and remember 
whatever i talk about here is not financial advice   i am not your financial advisor because i don't 
know [ __ ] about crypto what are the key benefits   of staking crypto well as i said it's an easy way 
to earn interest on your cryptocurrency holdings   passive income you don't need and this is a good 
thing too you don't need any hardware you don't   need any equipment for crypto staking like you 
would if you were to mine and you are in fact   helping to maintain the security and efficiency 
of the blockchain chosen one that you have holding   the coins and if this is important to you you'll 
be a green friend it's much more environmentally   friendly than crypto mining however the primary 
benefit of staking is that you earn more crypto of   the currency or coin that you bought and interest 
rates as i said they can be really generous we're   going to look at them in a moment at a moment 
in some cases you're as i said i started around   well actually around 16 16 with my usdc and 
it goes up to 100 per year it is potentially a   very profitable business you know what they say 
before there's no business like show business   but i'm telling you one thing there's no business 
like banking business except for monkey business   so you know it is a profitable way to earn money 
and i see the reason why i see that there's so   much other the returns the rewards are so 
high is simply because this is the future   of money it's the new financial system being 
built there's so much competition that all these   networks these blockchains right they're competing 
against each other and that is why this is really   where you can reap rewards from from across 
the board from so many coins it's not going   to stay like that but at the moment it is highly 
profitable so as i said it's taking also a way of   supporting the blockchain of a cryptocurrency 
that you like that you invested in and these   cryptocurrencies they do rely on holder staking in 
order to verify transactions and keep everything   running smoothly on the blockchain now of course 
you also want to hear about the risks of staking   right and there are a few of course as everywhere 
you see crypto 5 crypto prices are highly volatile   they can drop you know within a split second 20 
is not out of the ordinary within 30 minutes so if   you are let's say you staked point suffer a large 
price drop well that could of course outweigh any   interest you might earn on them that's why as 
they try to find the ones that do at least 50   however second staking can require that you 
lock up your coins for a minimum amount of time   and that is true so you gotta lock them up 
or even when you redeem them they'll just   keep them from for a period of time i don't 
like that either but you know that's a risk   so during that period you're unable to do anything 
with your steak assets you can't sell them you   can't take them out so you got to be really i 
mean for example i don't mind that i have to   lock up my kusama tokens for the kusama para 
chain crowd loans but um there are many other   coins that i would not be comfortably 
locking up for that amount of time   and then another risk you could say when you 
want to unstake your crypto there may be as   i said before an unstaking period where the the 
money you're not earning they're just they're just   there i would certainly not re recommend you to go 
to manchester metro dow is the platform where they   just lock you know you just you only unstake them 
and then you can come can't do anything with with   your money for a week there's no reason why they 
do that they're just i don't like that so banjo   dial is on my personal [ __ ] list however the 
biggest risk you face with crypto staking is that   the price can go down right so keep in mind that 
if you find cryptocurrencies offering extremely   high interest rates it will of course also have an 
inflationary impact because obviously if everybody   is earning that amount of rewards that means the 
new coins will have to be minted and that goes   along with an inflationary model so do you know 
make your own research when it comes to which   coin you're investing in also many smaller crypto 
projects they do this to you know entice investors   but the prices often end up crashing right 
so it could be kind of like a pump and dump   if you're interested in adding crypto to your 
portfolio but you prefer less risk you may want to   opt for cryptocurrency stocks 
instead i wouldn't do that i think   crypto staking is is on my is my top priority 
list and i highly highly appreciate it   so that's it for me today i do hope you enjoyed 
it i hope it gave you some kind of value please   look out for in the coming days i'm gonna launch 
another video i'll just take what to stake where   i really will go through with you where we're 
gonna make two three different examples staking   on two three different platforms so you can 
really see what it's all about in the end of the   day it's similar it's the same same but of course 
different so in case you didn't get any value and   you know what you gotta do hit like smash 
subscribe and remember when a flash crash appears   well then i'm here so please hit that notification 
bell as well but don't forget eddie loves you

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