Review How To Stake Your Cryptocurrencies To Make Passive Income? Easy Ways On Binance And Gxg Platforms

Discussion in 'Crypto Learning Center (Library)' started by Anastasia, Jan 27, 2022.

  1. Anastasia

    Anastasia Rookie!!!

    With staking, you just need to hold cryptocurrencies in a wallet in order to be paid by the network and thus earn passive income.
    What is cryptocurrency staking?
    Staking is the act of immobilizing your crypto-currencies in a smart contract in order to participate in the operations that take place on a blockchain. Staking is similar to mining in that it rewards users who participate in securing a decentralized network. You will thus store your crypto while benefiting from advantages.

    Differences between Proof of Work and Proof of Stake
    In the world of cryptocurrencies, we often talk about POW or POS, but what makes them different?
    Proof of Work (POW)
    If you know how Bitcoin works, you have surely heard of Proof of Work (PoW). PoW is the mechanism for validating transactions and then aggregating them into blocks. These blocks are then linked together to form a blockchain. In this mechanism, miners lend the computing power of their computers to the network to solve a complex mathematical problem. The first to solve the problem gets the right to add the next block to the blockchain. As a reward for participating in network operations, the miner receives Bitcoin.
    PoW has proven to be an effective innovation for validating transactions in a decentralized network. The problem with this mechanism is that it involves a lot of computing power from the miners. Indeed, the cryptographic puzzle they have to solve has no other use than network security. If this partly justifies the energy expenditure associated with these calculations, it is nevertheless legitimate to wonder about the possibility of developing a mechanism that consumes less electricity.
    Proof of Stake (POS)
    In this mechanism, participants lock their tokens. The protocol then assigns the right to validate a block randomly to one of the participants. In PoS, the probability of being chosen to validate the block is proportional to the number of locked tokens. Thus, the more tokens the user has locked, the more likely he is to be chosen to validate the transaction.
    PoS thus makes it possible to produce blocks without resorting to mining. While mining requires a large investment of hardware and time, PoS simply requires an investment in cryptocurrency. Instead of competing to validate a block, participants in a PoS-based network are selected based on the number of tokens they stake. This stake incentivizes participants to maintain the security of the network because if they fail in their mission, they can lose everything. Indeed, an error in the validation of a transaction leads to a penalty and the total or partial destruction of the tokens involved.
    Concretely, staking, therefore, consists of buying a cryptocurrency and then storing it in an appropriate wallet. So everyone who participates in securing the network is rewarded for it.
    How to stake?
    Due to the growing popularity of staking, the platforms that offer this activity are multiplying. However, the more players there are, the greater the risk of scams. Indeed, you must choose the platform on which you will stake your assets carefully.
    Behind promises of staggering returns may be hiding a scam. To allow you to perform staking with complete peace of mind, we are going to present two platforms that are both secure and profitable. Thus, you will be able to earn passive income thanks to your crypto-currencies.
    Binance, the largest trading platform
    Among the various trading platforms that offer staking, Binance is probably the best known. Binance is a cryptocurrency exchange founded in 2017 by Changpang Zhao, a Chinese developer. In 2021, it is the largest platform in terms of daily cryptocurrency trading volumes. Binance is present in more than 180 countries and boasts more than 13 million active users, making it a trusted platform to start staking.

    How does staking work on Binance?
    To start staking cryptocurrencies on Binance, you must first create an account. First of all, you should know that creating an account on Binance is completely free. Note that you can also perform this operation using your mobile phone number. A verification email is then sent to you in order to validate your account. Once this is done, go to the “Earn” section and click on “Staking”.
    You can compare the different cryptocurrencies available for staking on Binance. You see the estimated APY, the minimum staking duration as well as the minimum amount of tokens to lock.

    APY (Annual Percentage Yield) is a rate of return that takes compound interest into account. Unlike simple interest, compound interest is calculated periodically. The amount is then immediately added to the balance. In this way, your account balance increases a little more each period and the interest you receive with it.
    The APY basically depends on the volatility of the cryptocurrency and the duration of the lock. Indeed, there is no high return without risk. You should therefore be aware that a high APY is often associated with high volatility. Once you have chosen the cryptocurrency whose risk-return ratio satisfies you best, you must buy it before you can stake it.
    How to stake and mine GXG token?(J^x2TSMvRj1COh0^)

    According to the GXG token economic model, investors who hold GXG tokens or participate in pledged LP tokens will receive GXG Token earning rewards every day. The reward is issued directly from the Mining Pool to the investor's platform account. This process is called mining.
    According to the smart contract, 65% of GXG gaming daily’s net income will purchase GXG TOKEN from the current market and automatically inject it into the Mining Pool.
    A player can also buy more tokens and top up the current balance of their token on the GXG gaming platform. By doing so, the player increases the number of tokens staked in order to receive a larger dividend payout. When investors receive GXG mining rewards, investors can choose to sell GXG tokens in the market to obtain immediate returns, or they can choose to continue to participate in pledges to obtain higher forward returns. Both GXG token mining and staking will be provided on the platform. So, you can be a crypto miner or stakeholder, and also an investor of GXG Meta-verse gaming platform. Any inquiries, please visit GXG I-gaming Platform | DEFI | CASINO
    Conclusion
    Cryptocurrency staking is a simple and secure way to generate passive income from the various cryptos you hold. If you do not intend to do daily trading, it is, therefore, an excellent solution and you will thus benefit both from the interest but also from the evolution of the price of your asset over the long term.
     
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  3. Chinavar

    Chinavar Jackobian

    I was told to use baby oil and water but I never listen I use pledge and it works good. Ive tried them all and pledge is the best for me.
     
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