How to make money online on staking?
Today, people have different ideas about saving. Some spend their money on variable banking products because they think that is the best way to save, while others are desperate to trade and stick to the stock market. There seems to be a financial product for everyone. But few people know about modern investment solutions. What are these high-tech alternatives? Why is it not profitable and safe to invest money by leaving it in the bank? Read on and find out more!
1. Why are banks failing?
- Safety and security.
- No profit, but a loss.
- If not the banks, then who?
2. Why staking?
- How is the staking done?
- Coin application.
3. Staking and saving.
- Saving account.
- Crypto staking.
Why are banks failing?
In this turbulent year, many people have been asking themselves how to save and grow their money. The recession has prompted some people to increase their capital in risky ways, such as trading futures, options, using high leverage and others. On the other hand, conservative investors were trapped in savings in bank accounts and other unprofitable products of traditional institutions. In fact, these products are not only beneficial, but also loss-making. Here are some reasons why.
Safety and security
Keeping money in a bank account is not as safe as many people think. Are you sure your deposit is in the safest place in the world? Your money is in circulation, it moves between borrowers, the bank uses it in different ways, and no one knows if the bank will one day collapse or be robbed. Just to name a few.
Look at the persistent financial crises in Latin America, which started in 1980 and some of which are still ongoing. The most famous case, unofficially known as Corralito, occurred in 2001-2002, when many banks in Argentina went bankrupt and people's assets were frozen. Pretty safe place to keep money, isn't it? In a situation where a country has the largest external debt in the world economy, there is nothing that the banks can do, so there are virtually no guarantees.
What about the financial crisis in Cyprus, which caused a big reaction in 2013? International creditors imposed a one-off levy on both uninsured and insured deposits. In other words, they confiscated the funds of bank customers. To protect the Cypriot banking system, a seizure of savings was carried out, called a "bail-in". It turned out that banks do not inspire confidence in any way and no longer guarantee the safety of your essentials.
What happened in Cyprus became a notorious example of banks in dire straits across Europe. Investors lost billions in the process.
These are just crisis situations, but nobody is ruling out robberies and attacks, let's face it:
- Let us recall the break-in at Banco Central Fortaleza, when some R$ 160 million were stolen.
- The Securitas robbery was the biggest robbery in England in 2006.
- In 1976, Beirut was the scene of the world's biggest robbery, when a group of people decided to rob the local branch of the British Bank.
And this list is far from complete.
No profit, but a loss
Have you ever heard of negative interest rates? If so, do you like the idea of paying a bank to hold your money? It would be strange if you did. Imagine that in Germany you pay the bank an APR of 0.4-0.5% if your deposit exceeds €100 000. Currently, more than 200 banks in Germany charge negative interest rates to private customers. Fees range from 0.4% to 0.6% for deposits between €25 000 and €100 000. For people aiming to increase their capital, this instrument can only mean one thing: they do not actually earn anything, but they get losses.
In essence, banks cut interest rates below zero to stimulate growth, which is one of the tools of monetary and fiscal policy to influence economic demand. When central banks lower interest rates, interest payments, such as mortgages or loans, become cheaper and borrowers have more money to spend on other things. Conversely, this discourages savers from choosing to save and keep their capital in the bank. This increases economic consumption.
If not the banks, then who?
Many invest their money in real estate in US dollars. Investing in real estate can be lucrative, but you need to be prepared for the risks:
- However, the property market is unpredictable and you never know when things will get worse.
- Real estate takes a lot of time and money, especially if you want to rent or sell it. For example, you have to take care of tenants and maintain the property.
- Real estate assets are not liquid - they cannot be exchanged on money immediately.
- Sometimes, buying a property requires a mortgage, which means going to a bank.
- Other risks include poor location, negative cash flow, high vacancy rates and structural problems that cannot be predicted or identified in advance.
The biggest mistake in real estate investing is that you don't have the option to withdraw your capital at any time. And there are always many traps waiting for you around the next corner. Sure, you can start building your wealth using this strategy, but there's more to be gained along the way than just keeping your money in real estate and trying to keep up with inflation.
Investors often shy away from the high annual returns offered by staking and the security imposed by traditional savings and other financial products. Cryptocurrencies have created a false impression of volatility and high risk. In fact, this is a new area that most people avoid because they do not know much about it. We often rely on what we know and do not want to discover the new opportunities offered by the new financial era. If you look behind the scenes, you will see countless opportunities to invest in cryptocurrencies. In addition to buying and holding cryptocurrencies, there is another more lucrative and intriguing way to make money: Crypto-Staking. What does it mean to use cryptocurrencies? Read on!
How is the staking done?
It's not a big deal and you'll quickly get the gist of it. The most important thing is that bidding is possible on blockchains with a Proved Probability of Receipt (PoS). These blockchains use a Proof of Stake algorithm that determines how trades are checked. When a transaction is sent to the network, the network nodes verify that the person has enough tokens or will not harm the network and then verify it. Once a transaction is added to the blockchain, it cannot be modified. Well-known PoS blockchains are Cardano, Ethereum 2.0, Polkadot, Binance Chain and Algorand.
Staking means that by using your coins, you participate in the network and are rewarded for doing so, a percentage of which depends on how many coins you have placed. In some blockchains, users can only participate with a certain stake.
Working with coins and platforms
To be clear. Some cryptocurrencies allow staking, others do not. Why? The answer is that the blockchains to which these cryptocurrencies refer are based on different mechanisms: PoS and PoW. One of the PoW (Proof-of-Work) currencies is Bitcoin, and you cannot stake it. PoS (Proof-of-Stake) coins can be staked.
Compared to conventional cryptocurrencies, there are coins that do not depend on fiat - stablecoins. Stable coins are pegged to real assets (e.g. US dollars) and change little in value. As is well known, cryptocurrency coins are highly volatile, so stablecoins were created to reduce volatility. In principle, the use of stablecoins also offers lucrative investment opportunities.
When we talk about where to stake cryptocurrency, there are many blockchain networks. Some of them work with pure staking proving mechanisms, others use PoS variants such as DPoS, and others. Within this rich range, several ones have been particularly highlighted and recommended.
Let's take a look at the most profitable places where your capital is not only safe, but also multiplying! Here are the best platforms that are reliable, profitable and forward-thinking!
Don't want to hold your assets without being able to sell or withdraw them? Go to Huobi: there's no lock-in period and you can still earn up to 50% APY! Be as flexible with your funds as you want! For simple rates and long-lasting and profitable returns, choose Huobi! Huobi has been the world leader in cryptocurrencies since 2013, so you can enjoy maximum security and reliability. staking on Huobi is the right way to increase your earnings fast!
Enjoy fast and easy growth with eToro, without doing anything yourself. eToro manages the entire staking process and you get systematic monthly profits! Simply deposit your money, close it and that's it! Real passive income is right in your hands! Returns are compounded and range from 75% to 90%. This is the perfect booster to increase your capital! eToro has over 20 million users worldwide and is regulated by the best authorities (UK FCA etc.), so you can feel as safe as possible! Don't waste time - take your finances to the next level with eToro!
If you're looking for security and reliability and want to sleep well at night, head to Binance, the world's largest cryptocurrency exchange. Binance is the best place to make money with cryptocurrency, for beginners and experienced traders and investors alike. Although Binance is not regulated by higher authorities, your funds are protected by SAFU. Congratulations, you can forget about nerves. Earn passive income easily and safely! Plus, you can try staking with new coins and get more APY.
You can earn passive income at Poloniex in just a few steps: deposit money, leave it in your account and earn bonuses! Piece of cake. Worried that you won't be able to trade or withdraw money while earning rewards? Don't worry, you can! As long as Poloniex is making highly competitive profits, you are free to sell, trade and withdraw your funds: no lock-in period and no fees!
If you only have $1, you can increase that amount now by staking on Coinbase. With just $1 you can start earning passive income! Is it technically difficult to stake? Don't worry, Coinbase will do all the work for you. This is the leading US crypto exchange. It helps you run and synchronise nodes with the blockchain so you can sit back and earn rewards. Isn't this a great start to increasing your income?
Why stake it?
Now that you understand the nature of interest rates, let's talk about why they have become so high.
When you buy coins and participate in the network, you are rewarded. In this way, you invest your money and earn a passive income. This can be compared to keeping coins in your wallet for a certain period of time and being allowed to stake. As passive as it is!
Overall, placement is an easy way to generate passive income.
To take part in the staking, there are currently only a few steps: create a wallet, fill it with coins and start staking! It's really not rocket science!
Dispersion and storage
A savings account is the most popular financial product offered by most banks. Here you receive regular withdrawals depending on the amount you save. However, the rates and options available vary depending on your country. Generally, investors receive on average no more than 2% interest per year. We do not take into account countries with the highest inflation rates, where the annual interest rate can be as high as 30% and the real return is lost.
Banks with such low ratios generate their own income, for example by using your money for loans. The profits from this business practice are shared with depositors in a way that does not benefit depositors.
In a bank, you have no control over your capital; it is not your property. If a crisis hits, don't get your hopes up - the bank can honour its guarantees with the help of the government, but there is always the other scenario where it defaults and depositors lose their money.
The action is different. Firstly, you are paid to participate in the network. Second, the least lucrative remuneration is still higher than that offered by banks - around 5%. It is certainly higher than any savings account offered by a bank.
As for risks, they also exist in the crypto staking market. It is well known that cryptocurrencies are highly volatile and can fall during your lock-in period depending on the market situation (worst case scenario). In this case, you may lose money. However, they can also rise and you will receive a generous amount of money on top of your staking premium. To avoid this volatility and high volatility, people stake stable coins such as USDT. They are not expected to suddenly collapse or rise, which reassures investors to some extent and makes them confident of future profits.
Even if traditional savings are less risky in this respect, we should not forget the macroeconomic situation where banks are literally controlled by the government and very often follow its instructions.
When it comes to how long it takes to get started, the odds win. In fact, it's the fastest. It can take days (sometimes even weeks) to open a savings account, but it only takes a few minutes to start staking.
In many ways, it is simpler and more profitable than banking products, but it also carries some risks. However, it is possible to combine the two and create a diversified portfolio.
Today, there are many ways to save and increase your income, but people often opt for old-fashioned and trivial options such as a bank savings account or real estate. These options, which are considered reliable and safe, hide many pitfalls and - even more - real mistakes. Even with these seemingly "safe" investment options offered by banks, it is best to be careful and always be vigilant.
It's better to move with the times and take advantage of the opportunities offered by the digital world. The cryptocurrency industry is rich and offers many investment opportunities. Many people find it difficult to get to grips with because they are not familiar with the field, but it is not too late to start taking action! Don't be afraid to increase your income with cryptocurrencies, learn modern ways that are much better and more efficient to generate passive income!
If you want to know about the best offers from top platforms and crypto exchanges, please join our community!
We explore the opportunities of investing in cryptocurrencies and want to share them within our community.