How to make money online on staking?
Today, people's ideas about saving are going in different directions. Some invest their money in different bank products because they believe it's the best way to keep it, while others desperately rely on trading and hold on to the stock market. It seems that there are financial products to suit all tastes. But few people are aware of modern investment solutions. What are these high-tech options? Why is it not profitable and safe to put your money in a bank? Read on to find out the answers!
1. Why are banks failing?
- Protection and security.
- Not wins, but losses.
- If not the banks, then what?
2. Why staking?
- How does staking work?
- Coins for staking.
- Why is staking profitable?
3. Investing and saving
- Savings account.
- Risks associated with crypto.
Why are banks failing?
In this turbulent year, many have been wondering how to save and grow their money. In a locked-in situation, some turned to risky ways to grow their capital, such as trading futures, options, applying leverage, and more. On the other hand, conservative-minded investors have been stuck with savings deposits in bank accounts and other unprofitable products offered by traditional institutions. In fact, these products bring not only benefits but also losses. Here are some reasons why.
Protection and security
Keeping money in a bank account is not as safe as many people think. Are you sure your deposit is only in the safest place in the world? The fact is that your money is on the move, it moves with borrowers, the bank uses it in many different ways, and no one knows if the bank won't collapse or get robbed one day. Let's just recall a few cases.
Just look at the ongoing financial crises in Latin America, which started in 1980 and some of which are still going on. The worst case, informally known as Corralito, occurred in 2001-2002, when many Argentine banks failed and people's deposits were frozen. Pretty safe investment, wasn't it? In a situation where a country has the highest foreign debt in the world economy, there is nothing banks can do and no guarantees are given.
What about the financial crisis in Cyprus, which emerged in 2013? International creditors imposed a one-off charge on both uninsured and insured deposits. In other words, they confiscated the assets of bank depositors. This process of confiscating savings to protect the Cypriot banking system was called a bail-in. It has been proven that the banks no longer contribute in any way to confidence or guarantee the safety of your capital.
What happened in Cyprus became a notorious case of banks in deep trouble across Europe. Investors lost billions in this case.
These are just crises, but no one excludes robberies and assaults, let's face it.
- Let us recall the break-in at the Banco Central in Fortaleza, where some 160 million rupees were stolen.
- The Securitas robbery was the biggest robbery in England in 2006.
- In 1976, the world's biggest robbery took place in Beirut when a group of people decided to rob a local branch of the British Bank.
It is not a definitive list.
Not wins, but losses
Have you ever heard of negative interest rates? If so, do you like the idea of paying a bank to keep your money there? It would be strange if that were the case. Imagine that in Germany you pay a bank an annual interest rate of 0.4-0.5% if you have a deposit of more than €100 000. In Germany, more than 200 banks currently charge negative interest to private customers. The fees range from 0.4% to 0.6% for deposits between €25,000 and €100,000. For people whose aim is to increase their capital, this instrument can only mean one thing: they are not actually earning, but have one more expense.
Banks are cutting interest rates to below zero to stimulate growth, and this is one of the ways monetary and fiscal policy influences demand in the economy. When central banks cut interest rates, interest payments, such as mortgages or loans, become cheaper and borrowers have more money to spend on other things. Conversely, savers are discouraged from leaving their capital in the bank. As a result, household spending increases.
If not the banks, then what?
Many remain investing money in real estate in US dollars. Real estate investments can be profitable, but you have to be prepared for the risks.
- However, the real estate market is unpredictable by nature and you never know when a downward trend will start.
- Real estate is time-consuming and expensive, especially if you are renting or selling. Assume you have to look after tenants and maintain your property.
- Real estate is not liquid - it cannot be cashed out immediately.
- Sometimes, to buy a property, you have to take out a mortgage, which means you have to go to the bank.
- Risks include poor location, negative cash flow, high vacancy rates and structural problems that cannot be anticipated or defined in advance.
The main disadvantage of real estate investments is that you cannot withdraw your capital at any time. In addition, there are always many pitfalls lurking around the corner. Of course, you can start accumulating wealth with this strategy, but along the way you'd have something more than just real estate investing and keeping up with inflation.
Investors often waver between the high returns offered by investing and the security offered by traditional savings and other financial products. The cryptocurrency sector gives the false impression of instability and high risk. In fact, it is a new area that most people tend to avoid because they don't know much about it. We often rely on something familiar and do not want to discover the new alternatives offered by today's financial world. If you open the curtain, you will see a plethora of ways to invest in cryptocurrencies. Besides buying and owning cryptocurrencies, there is a more lucrative and fascinating way to make money: crypto-staking. What does cryptocurrency staking mean? Read on!
How does staking work?
It's not rocket science, and you'll quickly get the gist. The bottom line is that staking is available in Proof-of-Stake (PoS) blockchains. These blockchains use a proof-of-stake algorithm that determines how transactions are verified. When a transaction is sent to the network, the nodes in the network verify that the person has enough tokens or will not harm the network and confirm it. Once a transaction is added to the blockchain, it cannot be changed. Well-known PoS blockchains include Cardano, Ethereum 2.0, Polkadot, Binance Chain and Algorand.
Staking means that you stake your coins to participate in the network and receive rewards in return, the proportion of which depends on how many coins you stake. Some blockchains only allow users to participate with a certain stake.
Let us clarify the following. Some cryptocurrencies can be used, others cannot. And why? The answer is that the blockchains to which these cryptocurrencies refer are based on different mechanisms: PoS and PoW. One of the PoW (Proof-of-Work) coins is Bitcoin, and you cannot use it. PoS (Proof-of-Stake) coins can be used.
Compared to regular cryptocurrencies, there are coins that are not dependent on fiat - stablecoins. Stablecoins are pegged to real assets (e.g. the US dollar) and do not change much in value. As we know, cryptocurrency coins are very volatile, so stablecoins were created to reduce that volatility. In principle, placing stablecoins also offers lucrative investment opportunities.
Speaking of which, there are numerous blockchain networks where cryptocurrencies can be used. Some of them operate with pure proof-of-stake mechanisms, others use PoS versions such as DPoS and others. Among this rich offering, there are several highly referenced and recommended networks.
Let's look at the most profitable places where your capital is not only saved, but also multiplied! Here are the best platforms that are reliable, lucrative and promising!
Earn on Huobi
Don't want to keep your assets without the possibility to sell or redeem them? Go to Huobi: there are no lock-in periods and you can still earn up to 50% APY! Flex your funds as much as you want! Choose Huobi if you want easy wagers and consistent and lucrative returns! Huobi has been the global market leader in cryptocurrencies since 2013, so you can enjoy maximum security and reliability. staking with Huobi is just the way to increase your income fast!
Enjoy fast and effortless growth with eToro without having to do anything. eToro takes care of the whole setup process and you will systematically receive monthly returns! Just deposit your money, close it and that's it! Real passive income is right at your fingertips! The returns are compounded and range from 75% to 90%. This is the perfect power tool to grow your capital! eToro has over 20 million users worldwide and is regulated by top organisations (UK FCA etc.) so you can feel as safe as possible! Don't waste a moment - take your finances to the next level with eToro!
If you're looking for security and reliability and want to sleep well at night, go to Binance, the world's largest crypto exchange. Binance is the best place to earn with crypto, for beginners and experienced traders and investors alike. Binance is not regulated by top authorities, but SAFU protects your assets. Congratulations, you can forget your nervousness. Create passive income easily and safely! Also try to use your newly minted coins and get a higher APY.
You can earn passive income with Poloniex in just a few steps: deposit money, keep it in your account and earn bonuses! It's easy. Afraid you won't be able to trade or withdraw your money when you earn rewards? Don't worry, you can! Poloniex gives you competitive returns, and you can sell, trade and withdraw funds: no lock-in period and no fees!
If you only have $1, you can already increase this amount by staking on Coinbase. With just $1 you can start earning passive income! Are the stakings technically difficult? Don't worry, Coinbase does all the work for you. This is one of the best crypto exchanges in the US. It helps maintain and synchronize nodes with the blockchain, so you can just sit back and earn rewards. Isn't that a great start to increasing your income?
Why is staking profitable?
Now that you've got the gist, let's talk about why reach has become so high.
When you buy coins and participate in network activities, you get rewards. This puts your money to work and earns you passive income. You can even compare it to keeping coins in your wallet for a certain period of time and giving permission to spend them. Your profit is as passive as passive it can be!
Although the return depends on the blockchain, it still averages over 10%, which is much more profitable in terms of annual returns than traditional banks. In general, staking is an effortless way to generate passive income.
Over time, staking will become easier on the technical side. The thing is, participating in staking currently requires just a few steps: you set up a wallet, fill it with coins and start staking! It's definitely not rocket science!
Investing and saving
A savings account is the most popular financial product offered by most banks. Here you receive regular payments according to the amount you have saved. However, the interest rates and options available vary depending on what country you are in. As a rule, investors receive an annual interest rate of up to 2%. This does not apply to countries with the highest inflation rates, where the annual percentage rate of charge can be as high as 30%, resulting in a loss of real profit.
Banks earn their own money at such low ratios by using your money to make loans, for example. The profits from these business practices are shared with depositors, which is unprofitable for depositors.
In principle, you have no control over the capital in the bank; it is not yours. In the event of a crisis, don't get your hopes up - the bank can honour the guarantees with the help of the government, but there is always another scenario where the bank escapes liability and savers lose their money.
Risks associated with crypto
The stakes are different. First, you get paid for participating in the network. Second, the lowest yielding fee is still higher than banks - around 5%. In any case, it is higher than any savings account offered by a bank.
Speaking of risks: these also exist in crypto staking. It is well known that cryptocurrencies are very volatile and can fall during a lock-up period depending on market conditions (worst case scenario). In this case, you could lose money. However, they can also rise, and you will receive a generous sum on top of your staking. To avoid such high volatility, people choose stable coins, such as USDT. They are unlikely to fall or rise suddenly, so it makes investors somewhat calm and confident about future returns.
Although traditional savings are less risky in this respect, we should not forget the macroeconomic situation, where banks are literally controlled by the government and very often follow its instructions.
When it comes to how much time you need to get started, the staking wins. In fact, it's by far the fastest option. It can take several days (sometimes even weeks) to open a savings account, while it only takes a few minutes to open a staking account.
Overall, staking is in many ways easier and more lucrative than banking, but it also comes with certain risks. However, it is possible to combine the two and have a diversified portfolio.
Today, there are many ways to save and increase your income, but people often choose old-fashioned and trivial options such as a bank savings account or a property. These supposedly reliable and safe options are fraught with pitfalls and, most importantly, real failures. It would be best to keep your eyes open and always be on the lookout for these seemingly 'bomb-proof' investment solutions offered by banks.
Keep up with the times and take advantage of the opportunities offered by the digital world. The cryptocurrency sector is rich and offers numerous investment opportunities. Many people find it difficult to deal with because they are not familiar with this sector, but it's not too late to get things moving! Don't be afraid to increase your income with cryptocurrencies , master modern ways that are much more efficient when it comes to generating passive income!
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