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How to make money online on staking?

Nowadays, the idea of saving money is taking different paths. Some people move their money into variable bank products, thinking that it is the best way to save, while others cling desperately to the stock market. It seems that every taste has its own financial product. But few are aware of modern investment solutions. What are these high-tech alternatives? Why is leaving money in the bank not a profitable and safe investment? Read on to find out the answers!

1. Why do banks fail?

  • Safety and security.
  • Losses, not profits.
  • If not the banks, then who?

2. Why staking?

  • How does staking work?
  • When is stacking possible.

3. Staking and saving.

  • Savings account.
  • Risks associated with cryptocurrency staking.
How does staking work?
How does staking work?

Why do banks fail?

In this year of upheaval, many people are interested in saving and growing their money. With time running out, some have turned to risky ways of raising capital, such as futures, options, using high leverage and others. On the other hand, conservative investors have been forced to resort to savings accounts in banks and other unprofitable products of traditional institutions. In reality, these products are not only profitable but also loss-making. Here are some reasons. 

Why Do Banks Fail?
Why Do Banks Fail?

Safety and security

Keeping money in a bank account is not as safe as many people think. Are you sure your deposit is in the safest place in the world? Your money is in circulation, it circulates between borrowers, it is used by the bank in many different ways, and no one knows if the bank will ever fail or be robbed. Let's look at a few cases.

Look at the persistent financial crises in Latin America, which started in 1980 and some of which continue to this day. The most notorious case, known informally as 'Corralito', occurred in 2001-2002. During this period, many Argentine banks collapsed and people's bank deposits were frozen. Pretty safe money storage, isn't it? In a situation where the country's foreign debt is the highest in the world economy, there is nothing that the banks can do, so they do not really offer any guarantees. 

What about the high-profile financial crisis in Cyprus in 2013? International lenders imposed a one-off tax on secured and unsecured deposits. In other words, they confiscated bank depositors' funds. In order to protect the Cypriot banking system, the process of taking back the savings was called "bail-in".

What happened in Cyprus has become a notorious example of failing banks across Europe. Investors lost billions as a result of this incident.

These are just crisis situations, but let's be honest, no one is ruling out the possibility of robberies and assaults:

  • An example is the robbery of the Banco Central in Fortaleza, in which some 160 million R$ were stolen.
  • "The Securitas robbery was the biggest in the UK in 2006.
  • In 1976, the world's biggest robbery took place in Beirut, when a group of people decided to rob the local branch of a British bank.

And this list is incomplete.

Safety & Security
Safety & Security

Losses, not profits

Have you heard of negative interest rates? If so, do you like the idea of paying a bank to keep your money? It would be strange if you did. Imagine that in Germany you pay the bank 0.4-0.5% interest per annum if your deposit exceeds €100 000. Currently, more than 200 banks in Germany charge negative interest rates to their private customers. Deposits between €25,000 and €100,000 are subject to interest rates of 0.4% to 0.6%. For those who want to increase their capital, this measure can only mean one thing: they are not really earning, but spending a little more. 

In essence, banks are cutting interest rates below zero to stimulate economic growth, as part of monetary and fiscal policy to influence economic demand. When central banks cut interest rates, interest payments, such as mortgages or loans, become cheaper and borrowers have more money to spend elsewhere. Conversely, this will discourage savers from saving and keeping capital in the bank. So economic costs rise.

No Profit But Losses
No Profit But Losses

If not the banks, then who?

Many people insist on investing in real estate in US dollars. Investing in real estate can be lucrative, but you have to be prepared for the risks:

  • But the nature of the property market is unpredictable and you never know when it will fall. 
  • Real estate takes time and money, especially if you are a tenant or seller. Let's say you have to communicate with tenants and maintain your property.
  • Real estate is not liquid - it cannot be converted immediately into cash.
  • Sometimes you need a mortgage to buy a property, which means you have to go to a bank.
  • Other risk factors: inappropriate location, negative cash flow, high vacancy rates, structural problems that cannot be predicted or identified in advance.

The biggest disadvantage of investing in real estate is that you don't have the option to withdraw your capital whenever you want. And there are always plenty of traps around the corner. Sure, you can start to get rich with this strategy, but it's also better to have something more than just keeping your money in real estate and trying to catch up with inflation.

Investing in real estate
Investing in real estate

Why staking?

Investors are often put off by the high annual returns offered by staking and the security offered by traditional savings and other financial products. Cryptocurrencies give a false impression of instability and high risk. In fact, it is a new space that most people shy away from because they know little about it. We often rely on what is familiar and are reluctant to explore the new opportunities offered by the new financial era. Once you pull back the curtain a little, you will see the many possibilities of investing in cryptocurrencies. In addition to buying and holding cryptocurrencies, there is a much more lucrative and exciting way to make money: staking on cryptocurrencies. What is a crypto staking? Read on!

Why staking?
Why staking?

How does staking work?

It's not rocket science and you'll soon understand what it is. The fact is that you can place a stake on Proof-of-Stake (PoS) blockchains. These blockchains use a "proof-of-take" algorithm to determine how transactions will be tested. When a transaction is sent to the network, the network nodes check whether the person has enough chips or will not cause damage to the network, and confirm it. Once a transaction is written to the blockchain, it cannot be modified. The best known PoS blockchains are Cardano, Ethereum 2.0, Polkadot, Binance Chain and Algorand.

Staking means risking your coins to participate in the network and to be rewarded, and the amount of the reward depends on the number of coins you stake. Some blockchains only allow users to participate for a certain number of staking. 

Is stacking possible

Some cryptocurrencies can be staked on, others cannot. Why is this? The answer is that the blockchains to which these cryptocurrencies are linked are based on different mechanisms: PoS and PoW. You can stake on PoS (Proof-of-Stake) coins.

Compared to traditional cryptocurrencies, there are coins that are not dependent on fiat currency - stablecoins. Stablecoins are pegged to a real asset (e.g. the US dollar) and have little change in value. As we all know, cryptocurrencies are highly volatile, so stablecoins were developed to reduce volatility. In essence, stablecoins also provide lucrative investment opportunities. 

In terms of where to place crypto staking, there are several blockchain networks. Some operate solely on Proof-of-Stake mechanisms, others use PoS versions such as DPoS, etc. Among the wide selection of these books, there are many that are highly popular and recommended. 

Let's take a look at the most profitable places where your capital is not only safe but also multiplied! Here are the best platforms that are reliable, profitable and viable!

Huobi

Go to Huobi: no lock-in period and you can still earn up to 50% APY! Be as flexible as you want with your funds! If you want simple staking and consistent profitable returns, choose Huobi! "Huobi has been the global leader in cryptocurrencies since 2013, so you can enjoy the utmost security and reliability. Staking with Huobi is a great way to increase your earnings fast!

Huobi
Huobi

eToro

Enjoy fast and easy growth on eToro without any action on your part. "eToro manages the entire staking process and you will always receive your monthly return! Simply deposit your money, lock it and you're done! The real passive income is in your hands! Rewards are compounded and range from 75% to 90%. This is a great way to increase your capital! "eToro has over 20 million users worldwide and is regulated by the highest authorities (UK FCA, etc.), so you can rest easy! Don't waste a minute - take your finances to the next level with eToro!

eToro
eToro

Binance

If you want to be safe and secure and sleep well at night, go to Binance, the world's largest cryptocurrency exchange. "Binance is the best place to make money with crypto for beginners and experienced traders and investors. Although Binance is not regulated by the highest authorities, your funds are protected by SAFU. Congratulations, you can forget the jitters. Generate passive income easily and safely! Also try stacking and get a higher annual return. 

Binance
Binance

Poloniex

To start earning passive income on Poloniex, all you need to do is take a few simple steps: deposit money, keep it in your account and earn rewards! It's very easy. Worried that you won't be able to exchange or withdraw money when you get rewards? Don't worry, you can! As long as Poloniex generates highly competitive returns, you can sell, trade and withdraw your funds: no lock-in period and no fees! 

Poloniex
Poloniex

Coinbase 

If you only have $1, you can increase this amount by placing staking on Coinbase. With just $1, you can start generating passive income! Is it technically difficult to stake? Don't worry, Coinbase will do all the work for you. It's one of the leading US cryptocurrency exchanges. It helps you manage the nodes and synchronizes them with the blockchain so you can sit back and reap the rewards. Isn't that a good start to increasing your income?

Coinbase
Coinbase

Why staking?

Now that you understand the basics of staking, let's see why the stakes are so high.

When you buy coins and start participating in the network, you get rewarded. This is how you put your money to work and earn passive income. In fact, it is comparable to keeping coins in your wallet for a while and being allowed to place staking. 

Overall, the blockchain is an easy way to generate passive income.

Technically, the process has been simplified. For now, all you have to do to participate in staking is to create a wallet, fill it with coins and start staking! It's really not that complicated!

Staking and saving

Savings account 

Savings accounts are the most popular financial product offered by many banks. Here, you are paid regularly according to the amount you save. However, interest rates and options vary from country to country. In general, investors can earn up to 2% per annum. We do not take into account countries with the highest inflation rates, where the annual interest rate can be as high as 30%, but the real benefit is still lost.

With such low odds, banks earn their income by using your money, for example by making loans. The profits of this business practice are shared with depositors, who suffer losses.

In essence, you do not control your capital in the bank, it does not belong to you. In a crisis, don't fool yourself: the bank, with the help of the government, can honour its guarantees, but there is always a second scenario, where it avoids its obligations and depositors lose their money. 

Cryptocurrency staking 

The problems are different. Firstly, you are paid to participate in the network. Secondly, the minimum remuneration is always higher than in banks - around 5%. In any case, it is higher than in any savings account offered by a bank.

In terms of risk, cryptocurrencies have risks. It is well known that cryptocurrencies are quite volatile and can fall during the lock-in period depending on the market situation (worst case scenario). In this case, you could lose money. However, they can also increase and you can receive a generous amount on top of the stake amount. To avoid this instability and high volatility, people prefer to stake on stable currencies such as USDT. They are unlikely to fall or rise suddenly, so investors feel quite calm and confident about future profits.

While traditional savings are less risky in this respect, let's not forget the macroeconomic situation where banks are simply controlled by the government and very often do its bidding.

By the way, how long does it take you to start working? Actually, it's the fastest option. Opening a savings account can take days (sometimes weeks), but getting started staking takes just a few minutes.

In summary, staking is in many ways simpler and more profitable than banking products, but it does involve some risk. Nevertheless, they can be combined to form a diversified portfolio.

Conclusion

Today, there are many ways to save and multiply your income, but people often choose old-fashioned and useless options such as a savings account at a bank or real estate. These options, which are presented as reliable and safe, are fraught with pitfalls and, what is more, real risks of failure. It is best to keep your eyes open and always be vigilant, even when using these seemingly "bomb-proof" bank investment solutions.

It is best to move with the times and take advantage of the opportunities offered by the digital world. The cryptocurrency industry is rich and rich in investment opportunities. Many people find it difficult to get involved because they are not familiar with the field, but it is not too late to get involved! Don't be afraid to increase your income with cryptocurrencies, learn modern methods that are much better and more effective in generating passive income! 

If you want to know about the best offers from top platforms and crypto exchanges, please join our community! 

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