Staking cryptocurrency: a passive income in crypto?
Staking crypto is the latest trend in the cryptocurrency industry, cryptocurrencies such as Ethereum (ETH) and Cardano (ADA) allow users to stake cryptocurrency. A quick google explains that I will be rewarded for holding cryptocurrency. Wait did I understand that correctly; I get paid for holding on to my crypto? As a beginner in staking cryptocurrency this sounds great! Time to find out more about staking cryptocurrencies.
Staking crypto for beginners
While browsing Youtube I found out there are users around the world that are not only holding on to their crypto, but actually making a passive income by simply holding on to their cryptocurrency. The process of staking crypto is well explained in a short explainer video by FYDwiki which I will embed below. Whether you are wondering what staking is, or how to start staking cryptocurrency and you are a complete beginner in crypto I highly recommend you subscribe to FYDwiki’s youtube channel.
An advantage that traditional stocks still hold over crypto is that (particular) stocks in a company allow holders to receive a portion of the profit the company makes. With cryptocurrencies such as Bitcoin and Litecoin, there is no profit to be made, it is a decentralized network without a central authority. Crypto can be used as a store of value due to its deflationary nature, however holding Bitcoin for example does not provide a yearly return.
Proof of Stake
This has changed with the emerge of Proof-of-Stake blockchains such as FYDcoin. Staking cryptocurrency is a variation of mining cryptocurrency where the main difference is that staking nodes or computers compete that try to find blockrewards compete with each other by the amount of cryptocurrency coins they possess. On Proof-of-chain blockchains,
the higher the amount of crypto someone is staking, the higher the chance of receiving a blockreward.
Staking crypto explained
Staking cryptocurrency can be done by downloading and installing a piece of software called a crypto wallet. After you synced all the previous transactions of the blockchain (this can take some time) you are ready to stake cryptocurrency. For this article I have used the FYDcoin wallet, you can find it on their website which I will link below. What is left to stake crypto rewards is to buy some coins, in this case 1,000 FYDcoin, and a stable internet connection.
VIDEO EMBED: https://youtu.be/SkTL-1Gpl9c
There are plenty of cryptocoins that offer staking, and some with extremely high return on investments. My experience however is these rates are not realistic and often the price of the cryptocurrency goes down faster than the staking rewards can make up for it. As with most things in life, if something looks to good to be true it usually is.
Best cryptocurrency for staking
FYDcoin staking has been the most profitable for me personally, with an initial investment of $300. I am currently staking around $8 every month. FYDcoin is still a smaller cryptocurrency project that offers staking which makes the potential growth of my investment great, while the maximum amount I can lose is my initial investment. Another thing I like about FYD is that it has an active online community that helps beginners in cryptocurrency navigate through the jungle.
If you are looking to learn more about staking crypto, or got interested in staking FYDcoin you can go to to FYD