Staking in cryptocurrency is a reward earned for holding coins for a certain period. It helps to generate passive income for all cryptocurrency investors.
It has multiple types and also depends on the time frame as well. Many investors select a cryptocurrency exchange on basis of staking rewards.
Staking can be done with a lock-in period (known as Locked Staking) and without a lock-in period (known as Flexible Staking). Locked Staking has a higher interest amount instead than flexible staking.
Locked staking has various time frames for the lock-in period which are like from 7 days to 120 days. So all cryptocurrency exchanges like Binance and Gateio have various options. In this way, the investors earn interest which after 3-4 years can be a proper source of passive income.
Many investors prefer this option under cryptocurrency exchanges as the market is very volatile. So long-term investment with interest always gives a good idea to store cryptocurrency for the long term.
Flexible staking is also a good option for short-term investors to book profit in a small amount of time. In this method, there is no lock-in period and interest rates are less but a benefit is when your target arrives you can sell it on the spot.
Different cryptocurrencies have different staking percentages so do proper research before investing. Investment done with proper study helps to grow better. Today cryptocurrency market is crashing due to high inflation rates and the global war between Russia and Ukraine.
In this scenario of war and a high inflation rate, it is better to stake the cryptocurrency instead of panic selling. Earn interest and make a profit instead of selling with a loss. Use strategy with guidance during investment as blind investment is very risky.
Before I conclude, cryptocurrency is a very volatile market. So invest only that much amount that you can afford to lose and always diversify your portfolios. Stay tuned for more such articles till then stay curious and keep exploring with gyaan fiesta.