Staking and its benefits
Staking is the best way to earn more cryptocurrencies without actually buying more.
If you are holding cryptocurrencies, you need to be aware of staking. It allows crypto holders to earn more crypto tokens as interest by just holding them for a certain period of time in your crypto exchanges, or your personal wallets.
Staking is becoming very popular today, as every exchange is offering staking facilities and that too on many crypto projects. You can stake your tokens for a week, months, or years. Many crypto exchanges offer good annual returns.
Klever App currently provides 10% APR as rewards for any users who stake their KLV tokens in their wallets. Anyone can stake their KLV coins with a few clicks, using a simple and intuitive interface our wallet presents. Over 3 million users have been using Klever crypto solutions today.
Klever is one of the fastest-growing crypto companies with various projects coming up from hardware wallets, KleverChain, and others.
Benefits of staking
Your crypto holding is kept in safe custody.
You earn good interest and after a certain period of time, your holding increases.
You don't need any equipment for crypto staking like you would for crypto mining.
Staking has the added benefit of contributing to the security and efficiency of the blockchain projects you support.
Staking is more environmentally friendly than crypto mining.
Other than staking from crypto exchanges, you can also stake your cryptocurrencies from your personal wallets directly.
Staking is also a form of earning a passive income and it is an investment with little downside.
Many crypto exchanges provide an option of staking rewards, some offer their exchange token, some the token you are staking. So it is for the user to decide which crypto he/she wants as rewards.
Many long-term crypto holders look at staking as a way of making their assets work for them by generating rewards, rather than keeping it idle in their crypto wallets.
By staking some of your funds, you make the blockchain more resistant to attacks and strengthen its ability to process transactions. Some projects also award “governance tokens” to staking participants, which give holders a say in future changes and upgrades to that protocol.
However, staking does come with some risks, let us look at some of the risks involved in staking your crypto assets.
Risks in staking
Crypto prices are volatile and can drop quickly. If your staked assets suffer a large price drop, that could outweigh any interest you earn on them.
Staking can require that you lock up your coins for a minimum amount of time. During that period, you're unable to do anything with your staked assets, such as selling them.
Before you want to stake your crypto assets, always do your due diligence, because once you stake it, you are bound by their terms and if the price of tokens rises or comes down, you cannot do anything.
There are some exchanges that allow you to redeem your assets at any point, but you might also lose some of your principal token and they can impose a penalty.
So it is a Klever idea to think about which crypto asset you want to stake and for what time period.
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Disclaimer: This article is only for educational purposes, it is not an investment or financial advice on cryptocurrencies.