It is important to study the staking market to find the best platform suitable for this activity. It turns out that not all staking platforms are created equal. Some offer much better offers and conditions than others. Adam O’Neill, Marketing Director at Bitrue, recently explained how to choose a staking platform well.
What is staking?
Staking is an activity that is related to the cryptocurrency industry. It consists of locking a certain amount of tokens in your wallet over a certain period of time. In exchange for this operation, you earn rewards in the form of interest. Note that you risk losing your profits if you sell a token before the lock period ends. It must be said that staking can be lucrative, bringing attractive returns. But, we must not forget that there are risks associated with this activity in terms of volatility and security.
Regarding the risks, be aware that if the digital asset that is being staked experiences a significant drop during the lock-in period, it may reduce your profits or even lead to losses. It should be noted that in the event of a sharp drop in the price of a digital asset, the risk of loss will exist even if the staking platform increases the rate of return.
That said, the annual rate of return from staking can be high, depending on the token chosen and the platform used. For example, a platform like Bitrue offers an interest rate of up to 100% (for LOOKS, OHM tokens, etc.).
Do extensive research to find the right platform
Staking can be a lucrative business if you know how to choose the platform on which to invest. Indeed, earnings can vary greatly depending on certain factors, including the platform and the token. For this reason, it is necessary to take all the time necessary to study the market before launching. Moreover, a good study of the market limits the risksincrease its flexibility and maximize its potential returns.
Recently, the bullish rally of ADA, the native token of Cardano, showed how important it is to compare the conditions of different staking platforms before making a choice. Indeed, the price of ADA rose by 35.3% in 24 hours after Coinbase decided to offer an annual rate of return of around 3.75% for staking the asset.
That said, to choose the staking platform, you must take into account the yield calculation method. Indeed, staking platforms calculate yield differently. Some use a lower rate than others for this calculation. Moreover, others begin the process of earning interest the day after the lockdown. On the other hand, on some platforms, interest generation starts much later.
Apart from that, you must take into account the period during which the first interest payment is made. Depending on the platforms, this period can be daily, weekly or monthly.
The choice of a staking platform should not be made at random if one wants to derive benefits from this activity. You have to carefully study the market, taking into account certain key criteria, before making your choice.
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Luc Jose Adjinacou
Far from having dampened my enthusiasm, an unsuccessful investment in 2017 on a few cryptos only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay with my pen information relating to this ecosystem.
We would like to give thanks to the author of this short article for this remarkable material
The choice of a staking platform: Study the market well before launching
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