Have you heard about crypto STAKING? What’s that? Let’s briefly touch the topic.
You have your saving account in the bank and if you are lucky, you can get every year 1% as interest rate. Or you invest into ETF, EPN or funds with higher potential % gain.
What if you hold crypto currency and you would like to earn interest reward?
Here is a quick explanation from Binance exchange, what is staking.
So far it works for selected coins with Proof of Stake consensus. If we want to simplified it, you keep your coins on exchange and receive e.g. 5% of your amount of coins as reward annually. Your coins are used for consensus, because PoS does not need miners like in PoW.
Let’s take an example, more details about the coins and possible rewards, you will find here.
1, Your crypto currency is Tezos with price 1 coin = $1.27 (5.12.2019)
2, If you purchase 10000 coins you will invest $12,700.
3, You keep it on exchange or on third party platform which provides staking services and get approx. 637 Tezos coins as reward annually. Which translates in today’s price to $809.
4, Approximate rate is 6.37% what you will get back.
5, Which might be interesting if you consider that Tezos price can go up in the future and having already minus interest rates from central banks.
P.S.: If you would like to know more about Crypto Staking and my approach or if you would like to start building your crypto currency portfolio, get in touch and prepare together the first steps. To know more about my Crypto & Blockchain Advisory, join me here.