#STALKING #Binance #criptomoedas #mundocripto
The world of cryptocurrencies offers several ways to make money, and staking is one of them. But what exactly is staking? How does it work? What are the risks? And how can you get started safely? Let’s explore all of this in this article.
What is Cryptocurrency Staking?
Staking is a way to earn rewards by “storing” your cryptocurrencies in a digital wallet or directly on the Binance platform. It works similarly to leaving your money in an interest-bearing savings account, but with the advantage that by participating in staking, you are helping to keep the cryptocurrency blockchain network safe and functioning properly. When you stake, your coins are used to validate transactions and secure the network, and in return, you receive new coins as a reward.
On Binance, the process is simple and accessible. There are different types of staking, usually differentiated in terms of “Lock Period”. Some platforms offer the option to choose different lock periods for staking. The longer the lock period, the higher the reward, but also the higher the risk, as you cannot access your cryptocurrencies during that time.
Delegated Proof of Stake (DPoS): In this type of staking, you delegate your tokens to validators who perform transaction validation on your behalf. This form of staking is used by networks such as EOS and TRON.
Proof of Stake (PoS) vs. Proof of Stake (PoW): In staking, some blockchains use PoS, where validators are chosen based on the amount of cryptocurrencies that are "staked". Other networks may have an adapted version, such as PoW, but with staking functionalities built in.
Like any investment, staking also has its risks:
1. Market Risk: The value of the cryptocurrency you are staking may drop, which means that even with the rewards, you may end up losing money.
2. Lockup Risk: When you stake, your cryptocurrencies are locked up for a period of time. If the price drops during that time, you won’t be able to sell to avoid losses.
3. Platform Security Risk: It is not safe to leave your cryptocurrencies on an exchange, right, Binance, which despite being one of the largest exchanges in the world, may still not be safe from cyberattacks. To reduce the risk of loss, it is recommended to use secure personal wallets to store your assets.
It’s important to remember that you shouldn’t buy a cryptocurrency just for the sake of staking. Staking should be seen as a way to increase your earnings on an asset that you already trust and have exposure to. Buying a cryptocurrency just for the sake of staking can be risky, especially if you’re not familiar with the project behind it.
Imagine that you choose a cryptocurrency X that offers 100% APY in 10 days, but whose project is not solid or innovative. If the value of this cryptocurrency starts to fall, you can earn from the staking interest, but lose even more from the devaluation of the asset. The opposite is also possible: a promising project with lower staking rates can see the value of the asset grow, compensating for the modest interest. Therefore, it is crucial to evaluate the quality of the project before staking, avoiding investments in unstable assets.
