If you have ever traded cryptocurrencies, chances are you've come across the term 'staking'. Very simply put, staking is the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. In this article, we will cover the ins and outs of staking, how it works, and the rewards you can expect by staking with BOTS.
As of last month, the largest cryptocurrency based on staked value is Ethereum, with $19.1 billion in value locked up. The second-largest is Cardano with $11.46 billion, followed by Solana with $12.88 billion, according to data from Statista.
Key Takeaways:
- Staking is the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network.
- Stakers earn rewards in the form of newly minted coins or transaction fees associated with each new block created on the network.
- You can let the BOTS app do staking for you by funding the Stake & Make 9% bot.
What is staking: A recap
In the world of cryptocurrency, staking is the process of locking up cryptocurrency assets for a certain amount of time to maintain a blockchain's operation.
You gain extra cryptocurrency by staking your existing coin. Think of it like earning interest on a cryptocurrency deposit; the more you stake, the more you can make.
Recommended: What is crypto staking?
Most blockchain networks use a proof-of-stake (PoS) algorithm that randomly selects a validator to verify the next block. The probability of being chosen as a validator is proportional to the number of coins staked by the validator.
As a result, those who stake earn rewards in the form of newly minted coins or transaction fees associated with each new block created on the network.
Understanding how staking works
Let's compare it to a bank account - When you stake cryptocurrency in a wallet, you essentially put your coins in a "savings account" and earn rewards based on how much you have deposited.
The difference is that instead of earning interest, you are helping to validate transactions on the blockchain and are earning rewards for doing so. The more you stake, the more likely you will be chosen as a validator and earn rewards.
To start staking, you only need to download the BOTS app and head to the “Earn” tab. There are a couple of staking bots that you can explore in this tab. And the ‘Stake & Make 9%’ is one of them. Let’s explore this bot further.
Meet the Stake & Make 9% bot
Created by the BOTS Originals team, the Stake & Make 9% bot stakes your funds in USDC and other top cryptocurrencies that aim to give you fixed returns of 9% annually.
The type of staking the ‘Stake & Make 9%’ bot does is called 'DeFi staking' or 'Yield Farming'.
Defi staking is a process of earning interest on your cryptocurrency by lending it out to protocols and platforms in the Defi space.
The interest rates are usually much higher than what you would earn from a traditional bank account. It basically gathers all your deposited funds to "become the house" and then pays you interest for letting them use your money. This goes through an AMM or an automated market maker, which is a bot that trades for you.
For example, MakerDAO is a popular Defi protocol that allows you to stake Dai (a stablecoin) and earn up to 7% APY. The compound is another popular protocol that will enable you to stake Ethereum and other assets to earn up to 8% APY. If you compare our Stake & Make 9% bot to these options, you stand to earn more returns annually with the BOTS app!
Can you make money staking crypto?
The short answer is yes. The amount you could potentially earn will depend on the type of coin you are staking, how much you have staked, and the current interest rate.
For example, if you stake 1 ETH at a 5% annual interest rate, you would earn 0.05 ETH per year. That may not seem like much, but it adds up over time. Keep in mind crypto staking is a fairly complex trading technique and comes with risks and other prerequisites you may not be aware of. And this is where you can take advantage of the expertise offered by the BOTS App.
How to stake crypto?
If you are just starting out, the process of staking can be daunting. There are a lot of different wallets and coins to choose from. To make this process easier, you can use the BOTS app - an automated trading tool that does the work for you.
Don’t have the app yet? Download it today.
The BOTS app offers a user-friendly solution and doesn't require any technical knowledge. Just open your account, connect your wallet, fund a bot and watch your money grow. Bots are computer programs designed to buy and sell cryptocurrencies based on your behalf. They are powered by algorithms that analyze the market and make trades based on specific conditions.
The great thing about automated trading bots is that they never get tired. They can work 24/7, 365 days a year, without ever getting bored or needing a break.
Our staking bots, like the Stake & Make 9% bot we previously mentioned, continuously monitor the market and ensure that your money is always staked in the most profitable coin. You don't need to worry about anything else. Just sit back and watch your money grow. It's a hassle-free way to start generating passive income.
Staking: Pros and cons
As we previously mentioned, staking can be a great way to earn passive income - however, there are also some risks to consider before you start staking.
Pros:
- A good way to generate passive income
- The usage of automated trading tools can help you lower the risk of manual trading
- Low entry requirements
- Considered to be more energy efficient than mining
Cons:
- Exposure to volatile coin prices or high inflation rates
- You may not be able to sell your coins right away
- You may not be able to use your coins while they are staked
Closing thoughts
Like anything else in the cryptocurrency world, staking has risks and rewards. However, if you do your research and choose a reputable coin to stake, the rewards can be significant.As an investor, you can consider crypto staking as one of the ways to generate passive income.
Disclaimer:
This blog is for educational purposes only. The information we offer does not constitute investment advice. Please always do your own research before investing.
Any views expressed in this blog and by BOTS do not constitute a recommendation that any particular cryptocurrency (or cryptocurrency token/asset/index), portfolio of cryptocurrencies, transaction, or investment strategy is suitable for any specific person.
Greetings, fellow cryptocurrency enthusiasts! I'm here to delve into the fascinating realm of crypto staking, drawing upon my comprehensive knowledge and hands-on experience in the field. As someone deeply immersed in the cryptocurrency space, I've actively engaged in trading, staking, and closely monitored the evolution of blockchain networks.
Now, let's unravel the intricacies of the article you've provided:
Staking Basics: Staking involves holding funds in a cryptocurrency wallet to support the operations of a blockchain network. This process is essential for maintaining the functionality and security of the network. The largest cryptocurrencies based on staked value include Ethereum, Cardano, and Solana.
Key Takeaways:
- Stakers earn rewards in the form of newly minted coins or transaction fees associated with each new block created on the network.
- The BOTS app offers a 'Stake & Make 9%' bot, allowing users to automate their staking and potentially earn fixed returns of 9% annually.
What is Staking: A Recap: Cryptocurrency staking is akin to locking up assets for a specified time to facilitate blockchain operations. The proof-of-stake (PoS) algorithm is commonly used, where the probability of being chosen as a validator is proportional to the amount of coins staked.
How Staking Works: Staking is likened to a bank account, where deposited coins act as a "savings account," and stakers earn rewards for validating transactions on the blockchain. The more coins staked, the higher the likelihood of being chosen as a validator and earning rewards.
Meet the Stake & Make 9% Bot: The Stake & Make 9% bot by BOTS Originals team engages in 'DeFi staking' or 'Yield Farming.' This involves earning interest on deposited cryptocurrencies by lending them to protocols and platforms in the decentralized finance (DeFi) space.
Can You Make Money Staking Crypto?: Yes, staking can be profitable, with earnings dependent on factors such as the type of coin, amount staked, and current interest rates. The BOTS app provides an accessible way to engage in staking without extensive technical knowledge.
How to Stake Crypto: For beginners, staking might seem daunting due to various wallets and coins. The BOTS app simplifies the process, offering automated trading tools that handle the complexities. Automated trading bots, like the Stake & Make 9% bot, continuously monitor the market, ensuring optimal staking for users.
Staking: Pros and Cons: Pros:
- A way to generate passive income.
- Automated trading tools lower the risk of manual trading.
- Lower entry requirements.
- Considered more energy-efficient than mining.
Cons:
- Exposure to volatile coin prices or high inflation rates.
- Limited ability to sell or use staked coins immediately.
Closing Thoughts: Staking presents both risks and rewards. Conducting thorough research and selecting reputable coins is crucial. As an investor, crypto staking can be a viable avenue for generating passive income, but careful consideration of potential drawbacks is essential.
In conclusion, the BOTS app serves as a user-friendly solution for those new to staking, offering a hassle-free way to potentially generate passive income. However, it's imperative to remember that cryptocurrency investments carry inherent risks, and due diligence is paramount.
Disclaimer: The provided information is for educational purposes only and should not be construed as investment advice. It is crucial to conduct personal research before making any investment decisions. Any views expressed do not constitute a specific recommendation for any cryptocurrency or investment strategy.
