Crypto Staking

What is strike?  And how and where can you stake crypto?

Staking: an interesting way to earn extra returns

Strike is a term we see more and more in the crypto community.  Today, many exchanges offer the option to strike making it accessible to everyone.  Strike is rewarded in and with crypto.
So you can gain extra return with staking.  But it is still a relatively unknown concept.  That’s why in this article we’ll explain what staking is, how it works, what the pros and cons are and how you can stake via exchanges (such as Bitvavo).

What is strike?

Staking is nothing but holding crypto coins for an indefinite period of time in your cryptocurrency wallet.  With this you support the security and operations of a particular blockchain network.

You can compare the discontinuation of cryptocurrencies with receiving interest on a regular savings account.  When staking crypto, you buy a certain amount of a coin or token that you then hold (strike).  As a reward for holding, you will receive interest on your coins.

The interest differs per coin, but is usually paid in the form of crypto.  Not all cryptocurrencies can be discontinued.  This is only possible with so-called Proof of Stake coins.

Buy Bitcoin?  Open an account with Crypto and pay no transaction costs on euros ore cryptocurrencies traded

What is Proof of Stake (PoS)?

Proof of Stake (often abbreviated to PoS) is a consensus algorithm that aims to validate transactions and add new blocks to a blockchain.  These blocks are created by participants of the network who stake their coins.  In other words, hold it for an indefinite period of time.  This validates a new block on the platform.

As a so-called validator you can help with the validation of blocks.  To become a validator, you must first deposit an amount in the form of crypto coins.  By using a deposit, there is more certainty that a validator is doing his or her job well.  If the working agreements are not met, the validator will lose the deposit.

We call this deposit amount the stake and the process is called staking.  By holding the crypto coins, you will receive a reward.  This often takes place in the form of crypto.

The protocol will assign a participant to verify a block at regular intervals.  The participants who create a new block are not selected based on their computing power (as with PoW) but based on the number of coins they bet as a stake.

In general, participants with a higher stake are more likely to be selected as validators.  The more cryptocurrency you hold, the greater the power to validate transactions.  Also applies: the longer you keep the coins in your wallet, the higher the number of coins to receive for staking.

The pros and cons of strike

Strike has several advantages:

You don’t need technical knowledge or expensive equipment to strike.

You don’t have to do almost anything for strike.  Purchase the crypto and simply keep it in your wallet.  This leads to value growth and can therefore be a passive source of income through your own crypto wallet.

Do you hold a particular coin for the long term (HODL)?  Then you can make extra profit with staking.

With staking you contribute to the functioning of your favorite crypto currency.

As with anything, staking not only has its advantages, but also some disadvantages.  That is why it is so transparent to also mention the disadvantages of strikes.

You have to hold the coin for a certain amount of time.  During this period, you cannot sell the coin until the time has elapsed.

To really turn it into a lucrative passive income source, quite a bit of invested crypto is needed.  But the return is in any case better than on your savings account.

By holding the coins for longer, you cannot immediately respond to price developments.  Staking is therefore not suitable for day traders.

Some crypto coins can only be staked via an exchange (for example Crypto) and not via your own wallet.  The disadvantage of this is that you do not have it 100% under your own management.

In certain cases, there are also additional conditions, such as a minimum threshold and a minimum strike period.

How much can you earn with a strike?

Strike reward percentages vary by coin and exchange.  Each coin and exchange has its own rules and rates.  Today there are calculators available for almost all stakingcoins.  This allows you to calculate how much cryptocurrency you will get in return.

Crypto example, if you are going to strike at Crypto, the return will be calculated for you daily.  In addition, the proceeds are always paid on Monday.  It is also good to know that the annual returns differ per coin.  On an annual basis, the return varies from 0.79% to a maximum of 10% and sometimes more.

You can easily set up the strike via the Crypto strike dashboard.  On the screen you will see a dashboard with an overview of your staking activities and profits.  This way you know exactly how much you have already earned.

Strike through exchanges

You can strike at various exchanges.  Think, for example, of Crypto, Coinbase and Blockchain.  It is also possible to stake coins at crypto.com.  This is a well-arranged trading platform with a wide range of coins.  You can stake different coins via Crypto and new coins are added regularly.

At the time of writing, you can stake the following sixteen coins at Crypto:

ARK (ARK)

Bitcoin (BTC)

Bitcoin Cash (BCH)

Cardano (ADA)

Dai (DAI)

Ethereum (ETH)

Litecoin (LTC)

ICON (ICX)

NEO (NEO)

Ontology (ONG)

Tether (USDT)

Tezos (XTZ)

Tron (TRX)

USD Coin (USDC)

VeChain (VET)

Waves (WAVES)

Crypto In the above list you also see a number of coins that do not work on the PoS protocol.  In this regard, Crypto offers an off-chain strike in exchange for interest payments.

Conclusion

Staking is a nice and easy way to get extra returns.  Especially if you invest for the long term and the coins otherwise sit still.  It becomes completely lucrative if the price of the crypto you have chosen also rises considerably.  Then you not only earn by staking, but your property also becomes worth more.

The risks of staking an exchange are minimal and the benefits seem very rewarding.  Of course you can always choose to stake via your own wallet, but this takes a little more effort.  Striking is an excellent choice for HODLers in particular to generate extra returns.  Moreover, it is very easy to do.

In short, by discontinuing a cryptocurrency, you help build, expand and verify a blockchain in a direct way and you also achieve extra returns.

Bitcoin Price Drops To 7 Month Low Of $35k As It Hits March 2020 Oversold Status

Bitcoin had a blood red day as the price dropped to new lows below $35k.  The largest cryptocurrency by market cap has now lost about 50% of its value…

Bitcoin Drops To $38k As BTC Mining Hits New Record

The Bitcoin price is currently hovering around $32k at the time of writing (-18%).  The largest cryptocurrency by market capitalization previously suffered a major drop in price that…

Bitcoin price rises slightly again to $43k and Google Pay moves towards crypto payments
The Bitcoin price is currently hovering around $30k at the time of writing, after rising slightly earlier in the day.  The Largest Cryptocurrency By Market Cap Is Trying To…

crypto info

Cryptonation

Crypto Nation
Crypto.com

Academy – The Blockchain

DISCOVER

Blockchain – The technology behind cryptocurrencies

By Crypto Nation – 11 May 2020   

Cryptocurrencies work thanks to blockchains. The first of them was born in 2008, with the birth of Bitcoin, by Satoshi Nakamoto. It only took a document of less than 10 pages for the creator to present this very first blockchain to the world. This document, obviously very technical, is available here, for the most curious ones of you.

An incredibly innovative and ultra secure system

A great novel is not necessary to divulge one of the most beautiful innovations of our century. In eight pages of technical digest and almost simple diagrams, you can achieve breakthrough technology .

You will probably have to read it several times to understand everything, but you will quickly realize how clever the concept is .

To try to explain it to you as easily as possible, we are going to split the topic into three parts :

  1. Blockchain, like open books
  2. Hash and cryptography
  3. The Blockchain

Blockchain, like open books

To classify transactions on the blockchain, imagine an account ledger. A document in which we write everything that is bought and sold.

By reading the document, which is open to all, we will be able to know who paid how much to whom, and when.

However, space in this book is limited. So what to do once your book is filled with all of these transactions?

Just take a new blank book. And we continue, and so on!

But with a little subtlety, each book contains a summary of the previous book. This is how the books are linked together, forming a chain.

The books schematize the blocks of the blockchain.

These books are therefore actually files, filled with data. Blocks that form a chain, hence the blockchain.

Hash and cryptography

A question persists, how to summarize the previous book in the new one? Thanks to Hash!

When we talk about hash, we are talking about cryptography. You may be making the connection to cryptocurrency right away, and you’re right doing so. Cryptocurrencies therefore work thanks to the mechanisms of cryptography.

The hash functions (MD5, SHA256, SHA512, etc.) allow any content to be mathematically transformed into a hexadecimal format. A kind of line made up of letters (from a to f) and numbers.

Hash example:

Using a SHA256 hash on the following word: cryptonation

I get: f8cfa712055602d6490aea2691e79f6173b9609f1ebdd6c9d6171da357f3391c

Using a SHA256 hash on the following word: crypto-nation (I just add “-“)

I get: 20835680b9e88fd785b5353dc7ce427423dceda93017e66b39338303cce03fc5

We notice that the whole line has changed, even though I just added a character in my initial word.

And if I now take the following line: crypto-nation.io the best!

I get: dd30c985fa5c84091338233b70386ea2e9b84fdc952dc6306bf9c9133f0c3731

Although my initial sentence is much longer, the size of my hash result remains the same !

As you can see, thanks to the hash, it is possible to fit all of our previous book, in very little space.

The result of a hash does not allow me to go the other way , to find the initial word or sentence. It is there to verify that the previous data has not been modified !

You can simply try it out for yourself with online hash tools like this one: Online SHA256.

The Blockchain

To finally have a more concrete image, let’s replace our books with blocks, and summaries with hash, and there is our blockchain:

Each block therefore contains informations on several transactions carried out on the network. And by reading these blocks, we can retrace the whole history of the exchanges that have been carried out.

Satoshi Nakamoto himself created the first block of Bitcoin on January 09, 2009. Since then, new blocks have been created every 10 minutes or so, by those called Bitcoin miners.

It is legitimate to wonder, if in the long run it will not be too complicated to manage in terms of data storage.

In reality, no. Our storage capacity increases over the years, faster than the weight of the blockchain. If you currently want to download the entire Bitcoin blockchain, it would take just over 300 GB. Which is reasonable.

Now that you know more about the blockchain technology, you can dig deeper by going to see the PoW and PoS consensus. Then jump into the deep end, investing in it ! 

Coinbase

Sign up for Coinbase using my link and we can each get €8.79 in Bitcoin

Can I trust Coinbase?

Yes, Coinbase is a crypto company based in San Francisco and backed by trusted investors. As of August 2020, it has raised over $547 million. Coinbase is the world’s largest Bitcoin exchange and a broker.

Is Bitcoin safe on Coinbase?

At Coinbase, we’re committed to security by using industry best practices and storing up to 97% of bitcoins in encrypted, geographically separated, offline storage. To further protect our customers, all of the bitcoins stored in online computers are insured.

Is Coinbase a good place to buy Bitcoin?

If you are brand new to the world of bitcoin and cryptocurrency, Coinbase is an excellent place to start due to support for a number of popular cryptocurrencies, a strong security track record, and reasonable fees. Coinbase is a large cryptocurrency wallet provider and exchange based in San Francisco.

Crypto Tab Browser

Crypto Tab Browser

Try CryptoTab—the world’s first browser with mining features. Earn BTC without looking up from watching videos, chatting, or gaming online. Join the community of more than 25 million users all over the world already enjoying CryptoTab Browser.

Pi Network

PI Network

PI Coin Mining with your phone via the PI Network

The popularity of Bitcoin and other altcoins is growing day by day. What many people don’t know is that mining these crypto coins takes a lot of energy. PI Network has found the solution for this with its eponymous PI Coin; Mining with your phone. You can still claim PI coins for free by downloading the app and running the software on your smartphone. You can participate at the invitation of someone else, are you interested in building the PI network? Read on to learn how you can mine via your phone.

I am sending you 1π! Pi is a new digital currency developed by Stanford PhDs, with over 25 million members worldwide. To claim your Pi, follow this link https://minepi.com/shoppingPartner and use my username (shoppingPartner) as your invitation code.

Pragalicious

Lekkers over games en entertainment

The Book Dragon's Nook

What is a bookshelf other than a treasure chest for a curious mind...

go ask a movie

dertiger, reiziger, dromer.

Square The Square

空想創作

Response 418

Scraps from a coffee table science diary

yickng的天空

sharing my experience

Friperie Jansen

vintage-de-luxe fashion

Dray’s Daily Snapshots

"not to be taken too seriously"

Looneybooks79

Books books books books

NESEEH | BOOKS & RECORDS

Cultures & Communications

MatieMedia

It all unfolds here.

Jean Philip De Tender

everything is a story

Daily Log

Kiënnah

Ice Warriors of CP | Icy Stamps CPR

We're the Ice Warriors of CP. We're the biggest and the largest army of CP! Attend events, collect stamps, and more!

Mission: to Save

Helping You Save, Give and Live!

%d bloggers like this: