Learning Lab – Staking Crypto
People Need Better Earning Solutions
Did you know? Over the past century, traditional banking savings account returns have become progressively smaller. Today, the interest rate you are getting from your deposit is paper-thin at most. Truth being told, banks have made it harder and harder for everyone to develop an investment and benefit from the system.
Here are some numbers that are hard to digest: four decades ago, annual returns on savings accounts were over 11%. Today, most banks offer interest rates as low as 1-2%. Factor in the record-high inflation and the truth becomes even grimmer: you can actually lose money on your savings because of the depreciating fiat currency.
How are you going to protect and advance your investment so that century-old monetary practices don’t eat up your hard-earned money?
Isn’t it strange how everything around us seems to evolve except financial products? We have better technology and tools at our disposal yet it seems harder and harder to achieve financial competence and freedom. This is because traditional banking no longer understands people, failing to deliver any real value back to their customers.
Just like transportation, communications and other verticals have been and continue to be disrupted by better products, the way people earn money is now also getting better.
Staking – Put Your Crypto to Work!
So what is staking? Simply put, staking crypto is a new and innovative way for anyone to earn money. More precisely, it is a process that involves committing your crypto assets to support a blockchain network and confirm transactions. By doing this, you can earn passive income on an ongoing basis.
As stated above, when you stake crypto, your assets don’t just sit there doing nothing. Actually, they perform an essential function in the blockchain economy by validating transactions. In PoS (Proof-of-Stake) blockchain networks, crypto assets are needed to be staked and used as validators for all transactions in the chain. This way, your assets contribute to the security and efficiency of the network. It’s worth mentioning that the PoS technology is more efficient and eco-friendly than the energy-intensive PoW (Proof-of-Work).
In other words, crypto staking now offers everybody the chance to become an investor and earn value from their money in a simple way.
Why Stake Crypto?
Why become an investor in the first place? You might have a comfortable monthly income that covers all your needs and more. Why risk money investing? Simply said, inflation is reducing the value of your money over time. Against inflation, the rich and the poor all get the same treatment.
Saving money is not enough. Because inflation rises faster and higher than the rate at which most people can save money. So we need to make money work for us and advance our investment.
An important thing is that with crypto staking, anybody can become an investor. Regardless of your profile and financial background, you can start staking crypto with as little as $10.
Have you ever wondered what banks do with your money when you deposit it in a savings account? They invest that money to earn their own profits, giving back a very small percentage. Some of the biggest banks are already investing in the crypto and the blockchain space.
So why not become an investor yourself and cut out the middlemen, the stiff bureaucracy and the unreasonable low returns you would normally get from banks?
How to Stake Crypto
Staking crypto is simple and it takes little to no time to get involved. First, you have to choose a token and project that you understand, believe in, and think will do good in the future. Get familiar with the return interest rates. When you are ready to start your journey, you have several options:
Staking Through an Exchange
Certain exchanges may offer several advantages to your staking plan, like increased returns or added assets to your portfolio.
Staking on Specialized Platforms
By using a staking-as-a-service platform, you benefit from a third party service that takes care of all the technical aspects.
Staking Using a Cold Wallet
By staking your assets on an offline hardware wallet, you eliminate the risk of any potential hack.
Staking via Decentralized Money Market Protocol
With the rise of DeFi, decentralized money market protocols now enable users to borrow and lend their on-chain crypto with just an internet connection.
When you stake crypto assets, it’s important to know that the price of those tokens and coins is changing over time. This has an impact on your returns. More precisely, if the assets you stake now have a higher price than when you started, your rewards will be higher than initially calculated. The opposite is also valid: if the price goes down, your return diminishes, but most crypto assets have continued to rise in the long run.
Read more about how to stake crypto in this article.
How Are You Fighting Inflation?
At Coinmetro, we are continually listening to our community to understand what kind of financial solutions people need. In time, we have perfected our MARs (Multi-Asset Rewards) program so that today it is one of the most lucrative passive income plans in the industry.
With MARs, you can stake our native token XCM and earn back rewards in multiple other assets as well. Currently, FLUX and THT are included in the system, but more staking options are around the corner. Join MARs today to start earning and diversifying your portfolio with a people-centric passive income plan.
Another valuable tool that can give you a positive edge in the markets is the DCA (Dollar-Cost Averaging) investment method. We will soon implement the DCA method at Coinmetro, giving you access to a more structured investment plan.
With the DCA method, you can invest predefined amounts at predetermined time intervals. Why is this important? By doing this, you can potentially better mitigate market volatility and easily scale your portfolio over time. It is also a more disciplined approach. By sticking with the plan, you can take emotion and stress out of the equation, which can otherwise make it hard to make decisions.
We are always innovating and thinking ahead, in order to meet our community’s needs and to provide more value to you. As we build our Learning Lab, our desire is to provide meaningful insights and learning opportunities that you can easily integrate into your trading and investing.
Spread the good news about all the developments we’re regularly pushing forward at Coinmetro! Join our platform and invite your friends along, so you can all benefit from a people-centric crypto ecosystem. Hang around on our Discord and Telegram channels and head to the Coinmetro exchange now if you are already a user, to experience a premium trading platform.