Why Staking is the new Saving

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Why Staking is the new Saving

Opening a fixed deposit account with the bank is cool. But you can do that in the cryptoworld too!

For all the newbies, I’ll try to break staking down for you. Staking is an alternative consensus mechanism (way to verify and secure transactions) that allows users to generally secure crypto networks with minimal energy consumption and setup. This means that you don’t have to purchase a mining rig to mine for more coins, you can just use the coins you own, lock it up (stake it) in a smart contract, and you make more coins by helping the network!

Staking acts as a great “passive income” opportunity for those who want to support crypto networks while making mostly hands-off money. What you are doing is having different cryptos lying around in different places, all of which is generating more coins every single day, and you don’t have to do a single thing. Think of it like having multiple bank accounts and each of them are earning you a 5-10% APY every year. It really is the case, I am not trying to hype staking up.

There is also different kinds of staking, mainly locked staking and flexible staking. Locked simply means you have to leave your crypto in there for a fixed period of time, and will be unable to withdraw it out. Flexible is straightforward, you can take it out anytime you want to. I hope I included the main things to know before jumping into staking. If anyone reading this hasn’t looked into staking yet, I highly suggest it. It is the best form of passive income in my life right now, and I hope more people start having this stream of passive income as well!

Like the saying in this subreddit goes: Give a man a steak and he'll eat for a day. Teach a man how to stake, he'll eat forever.

submitted by /u/yaotard
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