When it comes to investment in cryptos, there are lots of methods. users implement different strategies in order to gain profit. One of the best ways to gain profit using digital currencies is to buy and hold them. you first choose some cryptos for your portfolio. Then it is time to buy and store them in a wallet for a specific period. On the other hand, we have staking as a profitable method.
Staking as a profitable method
Although buying and holding Bitcoin (or Ethereum) is the core part of investment, but as we mentioned before, you should allocate a portion of your budget to smaller (Satellite) cryptocurrencies. One of the ways to increase ROI is to choose multiple staking coins and diversify the portfolio. Therefore, staking as a profitable method is something beyond holding. It is a process in which coins are locked in a wallet and the investor will receive a reward in return.
Staking benefits include protecting blockchain network against malicious attacks as well as confirming transations. Staking cryptos allows investors to gain passive income. The more holding the cryptocurrencies, the higher the reward would be. In this article we are going to introduce great opportunities for staking in 2021.
Cardano (ADA): the unique characteristic of Cardano is that all of its technologies should pass review process before implementation.
ETH 2.0: Ethereum is not still a PoS-based blockchain. But it is predicted to change in late 2021 or early in 2022. Currently, users can stake in Ethereum, but in order to receive rewards they should wait until the final implementation of ETH 2.0.
Polkadot (DOT): Polkadot is there to simplify the transfer of cross-chain data and assets. This makes blockchain become flexible. Therefore, it will improve the adoption.
Which coin have you staked?