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Cryptocurrency staking has become increasingly popular over the last year or two, due to the low cost, minimal effort required, and massive profit potential. As a result, an increasing number of crypto projects are offering staking services, but the reliability, security and profitability of these opportunities differ greatly.
Summary
How Staking Works
Staking is pretty straightforward. You simply lock your capital for a set period, so it can be used in support of the staking protocol. Your funds are being put to work to earn you a passive profit, without your having to sell them. When using a Proof-of-Stake (POS) consensus mechanism, while you get on with your day, the funds in your wallet can be used to verify the authenticity and accuracy of blockchain transactions.
Comparatively stable, staking offers profits averaging around 10%- 12%, and does not require you to dedicate any time to market analysis or portfolio management. Fees are also exceptionally low, particularly when compared with most traditional asset investment strategies.
What to Look for in a Crypto Staking Platform
There are a number of characteristics that are shared by the best staking protocols. To understand what to look for when selecting a staking opportunity, let’s take as an example, ArbiSmart the leading interest-bearing wallet and crypto financial services hub. ArbiSmart has been steadily growing its market share y having taken a completely different approach, which has resulted in a greener, safer, and demonstrably more profitable staking platform.
A High Passive Profit: On average, staking profits average around 10%. Contrary to this however, you will make up to 147% a year in passive profits, from staking at ArbiSmart. You profits are primarily determined by your account level, which is based on how much RBIS, the native token, you own. You can earn staking revenue without holding any RBIS at all, but owning more native tokens means a better return on staking plans in any of ArbiSmart’s 30 supported currencies.
You simply need to deposit funds in a staking plan, for a period of 1 month, 3 months, 18 months, 2 years, 3 years, or 5 years. Your profits will increase, the longer the plan the more funds you stake and the higher your account status.
A Small Environmental Impact: The environmental cost of Proof of Work (PoW) staking is becoming increasingly hard to justify. A massive amount of energy is required, since for a higher hash rate, and therefore, better profits, miners have to use a vast amount of computing power.
ArbiSmart however is far greener, with an incredibly energy efficient option that offers industry-high profits, the more you stake, without harming the environment.
A Safe Staking Opportunity: Staking can include a couple of significant risks. To start with, not all market making protocols are trustworthy and transparent. Developers or whales might withdraw their funds and by taking out all the liquidity in the staking pool at once, cause a price crash.
Another risk is incurred if you wish to stake Ethereum. There is a greater danger of your staked capital losing value if the price of ETH drops, since you must stake 32 ETH, a sizable sum, to be eligible to become a validator.
In contrast, at ArbiSmart, you will earn the same consistent passive profits for the duration of the staking plan, regardless of the actions of other market participants, or whether the market is bullish or bearish.
As an EU authorized financial ecosystem, ArbiSmart has been operating with the appropriate licenses since its establishment in 2019. It has a strong reputation, as a good actor in the crypto space, with tough risk management protocols. It remains completely unleveraged, with a transparent record of fiscal responsibility and has had no instances of hacks or security breaches.
As we can see from our ArbiSmart example, staking can be green, low risk, effortless and profitable, and if you are smart about your choice of service provider, you can make an exceptional APY.
Ready to X10 your staking revenues?
Sign up with ArbiSmart, today!
*This article has been paid for. The Cryptonomist did not write the article or test the platform.
