How much can you actually make by staking crypto 👾?
Well, let's jump right in! First, let's discuss what staking means and how this can change your life. Staking is the process of committing your crypto assets on the blockchain to verify transactions that are made on a network. In essence, you are helping a network run, and therefore, are credited rewards for all of your hard work. Payouts can be made to you on a monthly, weekly, and even daily basis depending on the cryptocurrency that you stake. This is HUGE 🤯 compared to traditional investments where dividends are paid out to investors on a quarterly basis for holding stocks in a publicly-traded company.
Now that we know what staking is, let's see how much money you can make a year 🤑!!
There are many ways to stake your crypto assets, but for right now, let's just concentrate on staking pools. To make $25,000 a year passively, you will have to stake approximately 200 Ethereum coins for a one-year term at a conservative rate of 4.89%. This means that you will make $2,048.09 a month. Think about all the shoes and pizza 🍕 that you can buy with that money!
Here are some of the risks that are associated with staking crypto [The Motley Fool]:
- Crypto prices are volatile and can drop quickly. If your staked assets suffer a large price drop, that could outweigh any interest you earn on them.
- Staking can require that you lock up your coins for a minimum amount of time. During that period, you're unable to do anything with your staked assets such as selling them.
- When you want to unstake your crypto, there may be an unstaking period of seven days or longer.
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