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Is staking crypto worth it?

The above is a very common question that concerns everyone who is trying to make profit from cryptocurrency investing.

A short and crystal clear answer is Yes.

Crypto staking is designed to be profitable because without it, Proof of Stake cryptocurrencies are not able to run their network normally.

As a result, staking is almost as profitable as mining cryptocurrencies and at the same is easy for everyone to contribute and earn profit.

Through this post we are going to discuss the reasons why is staking crypto worth it to get involved and earn rewards by doing very little work for it.

Before we begin listing the reasons mentioned, we first have to clear out what staking crypto actually is and why it is important for specific cryptocurrencies.

– Is also recommended to read about the benefits of cryptocurrency and why are they important –

What is crypto staking?

When talking about crypto staking we refer to the process when an investor puts funds into a digital wallet and keeps them closed for a specific period of time.

As a result, his funds will support the validation process of transactions for Proof-of-Stake blockchains.

Some of the most popular cryptocurrencies that use Proof-of-Stake are mentioned below:

• Polygon (MATIC)
• Solana (SOL)
• Cardano (ADA)
• Polkadot (DOT)
• Ethereum 2.0 (ETH)

These are just a few among the plethora of altcoins using the Proof-of-Stake consensus technique.

Staking coins reminds a lot the process of interest-bearing savings accounts offered by banks.

And that’s because on both occasions you earn interest for the money you have invested, because that money is used for other purposes.

After this short introduction to what crypto staking is, it is becoming obvious why it is considered to be among the vital functions for a cryptocurrency.

How much can you earn staking crypto?

It is already clear that we are talking about a profitable process.

The average profit by staking cryptocurrencies ranges between 5-12% which is determined:

1. By the coin you chose for staking
2. By the wallet or the trading platform you chose to do your job

You can explore below some of the best cryptocurrencies to stake:

Polygon (MATIC)

Polygon crypto is among the biggest and most popular cryptos out there.

Its staking offer is amazing since you can earn 12% of your initial offer.

You can easily delegate your MATIC tokens with a single-click transaction to a staking provider such as the Allnodes validator.

Solana (SOL)

Your annual returns ranging from 7 -11%.

You can stake SOL tokens by putting them in a wallet that supports staking.

Solana staking operations are supported by the following wallets

• Phantom wallet
• SolFlare Web Wallet
• Exodus wallet
• Binance and FTX exchanges, although in those cases they assign you to their partner validator, meaning that they do it for you.

Ethereum 2.0 (ETH)

Ethereum is the second most popular cryptocurrency network in the world.

The rewards from staking ETH is from 2.5 to 5%.

As you can imagine this list is just the top of the iceberg, since there are a lot of other cryptos offering profitable crypto staking opportunities.

Completely passive income

One more major reason why is staking crypto worth it, is because the rewards earned by the investor are completely passive!
All that the investor has to do, is to make his research about:

1. Which is/are the coin/coins he wants to stake  
2. Decide on which wallet or platform he is going to place his funds.

The final step is simple:

All he has to do is to watch his crypto increase over the passage of time, and decide when is the right time to withdraw his rewards.

Staking in one crypto is like investing on it

Another one interesting benefit to reap from the staking process, is that while you stake your cryptocurrency its value will also increase overtime.

As a result, it makes sense to not only to invest your money in cryptocurrencies and then wait for the price to rise, but you should also – at the same time – stake you crypto to maximize your profits

For example,

If you invest 1000$ to buy MATIC with the price being at 2 dollars and its price after 1 year goes to 2.5 your money will be worth 1250$.

Additionally, if you choose to stake your MATIC at the same time, your earnings for one year will be 1400 instead of 1250 dollars!

So there is no reason why you shouldn’t take advantage of it.

After discussing staking profitability, it would be wise to take a look at the dark side of the moon, and refer to what could go wrong in the process. 

It is recommended to take a deeper look at the post “Is staking crypto safe?” because that’s the right thing to do before investing in your money.

Is staking crypto safe?

You should always keep in mind that nobody can guarantee that staking crypto is 100% safe.

Although, it’s a common belief that the barriers and risks involved are not intimidating enough in order to push you away from it.

Meaning that the anticipating rewards easily overtake the chances to lose your money.

In the table below you can see the risks you get when you choose to stake your crypto:

Finally is staking crypto worth it?

To sum up, crypto staking offers an interesting and profitable prospect.

As a result, if you are investing or planning to invest your money in the cryptocurrency market, you should definitely give it some serious thought. 

Although, you should always keep in mind that every investment you might make involves a risk.

That’s why you should always study and learn as much as possible before you get involved in any kind of investment.