The crypto space is packed with possibilities of making money, other than simply purchasing cryptocurrencies outright on a marketplace. Crypto-staking is an incredible way of earning using your cryptocurrencies, while continuing to HODL them for as long as you desire. For instance, with the market crash, it is a smart way of making your assets work while the situation stabilises.
What is Staking in Crypto?
Staking cryptocurrencies is a way to earn rewards on your crypto by depositing it with an appropriate platform and keeping it in their staking service for a fixed period of time. The purpose of staking crypto is that you commit your staked assets to support a blockchain network and validate its transactions, contributing to its operations.
There are an ever increasing number of products on the market offering crypto holders the chance to earn passive income from their assets. Crypto-staking is basically the equivalent of earning rewards on your fiat money, in a high-yield savings account via a traditional bank account. Your money at a bank earns you interest as a reward, mainly because the bank uses that money to pay loans and other investments. In crypto, when you stake assets and keep them locked in a staking service, you receive profits and rewards - just like receiving interest from a conventional bank.
Staking is suitable to everyday cryptocurrency users as it can be done through user-friendly platforms via a few simple steps, as well as crypto savvy people who want to run their own blockchain nodes and have switched from Proof-of-Work to Proof-of-Stake.
One main advantage of staking, and Proof-of-Stake blockchains, is that it eliminates the investment in mining equipment and the energy consumption it implies to earn crypto, and consequently, is more environmentally friendly. Together with this, users who stake their assets and become validators do not suffer from depreciation in their hardware as they do not require any, making staking a more profitable and more stable method. Furthermore, it is a simple process to earn on your crypto as many platforms have a great user interface to do it in a smooth and easy way. Overall, as it simplifies the process of validation, it enables a greater scalability of the network.
On the other hand, hodling onto the cryptocurrencies without being able to unstake them, and so losing the cost-opportunity to trade them without receiving significant profits, is a drawback. Compared to it, while mining, the users see greater rewards not compromising their crypto. However, it is worth noting that some platforms do allow unstaking at any time, such as Nebeus. In addition, in staking, the validator has more chances of generating blocks if it has a greater number of assets. Thus, the concentrated power threatens the decentralisation the cryptocurrencies were created for.
What is On-Chain Staking?
On-chain staking refers to the process of staking your crypto using Proof-of-Stake (PoS) protocols. Essentially, the entire staking process takes place on the blockchain. Your assets are truly staked on the blockchain and the rewards are dependent on how long it takes for the new block to be created.
In the PoS protocol, the nodes are the ones validating the generated blocks, a process which occurs randomly.
What is Off-Chain Staking?
Off-chain staking is when your crypto is used for other purposes, other than towards the Proof-of-Stake mechanism on the blockchain. With off-chain staking, you “stake” your assets in an external platform, distinct from the one running in the blockchain, and that platform can give you rewards for your staked assets but would use your crypto towards liquidity and towards ‘guarantees’ for off-chain transactions. Therefore, they are not truly staked, but serve for another purpose. This method is beneficial as it offers a simpler and user-friendly way of staking through established platforms and opens new assets for the users to stake, as the feature might not be available in their own blockchain to do so.
Staking Crypto on Nebeus
At Nebeus, we offer crypto-staking, on-chain and off-chain, and crypto-renting, both via highly lucrative, low-effort offerings, to reap the rewards of the assets you already have.
Staking with Nebeus allows weekly and monthly rewards, with returns of up to 7.5%, depending on the cryptocurrency you choose to stake, of which there are 23 to choose from, including PoW mechanism cryptocurrencies such as Bitcoin and Litecoin. Like most sites, reward payouts are conducted monthly.
What’s the Difference Between Crypto-Staking And Crypto-Renting?
Both earning methods imply locking your crypto to gain some kind of profit, but there are some key differences:
While staking your crypto implies locking out your assets for a determined period, the main purpose is validating the transactions in the blockchain. It gives the users decision-power and contribution to the operation of the network. Renting your crypto, on the other hand, is essentially earning rewards on your assets, as you would with interest from a bank.
Moreover, staking crypto in Nebeus allows users the possibility to unstake at any time, ending your lock up. In comparison, with crypto renting, the lock-up period is fixed and cannot be “unlocked”, so users need to wait till their agreed period of time is finished to access their complete funds.
Finally, both earning services allow taking profits on a monthly basis. However, as staking provides a greater flexibility the rewards tend to be smaller, whereas in crypto renting the RPY is usually greater than the staking rewards as the user is committing to securing their crypto for a determined amount of time.
With Nebeus, you can earn without selling your crypto, by staking or renting. Better than other offerings, our crypto-renting and staking options, can guarantee you monthly earnings and through zero effort on your part as you can stake and rent your crypto with Nebeus through our app and desktop platform.
It’s so simple. All you need to do is set up an account with us, choose between staking and renting (and the program if you select renting), select the cryptocurrency or stablecoin you wish to deposit from your wallet, and you’re good to go!
Are you ready? Sign up to start staking with Nebeus today.
La inversión en criptoactivos no está regulada, puede no ser adecuada para inversores minoristas y se puede perder la totalidad del monto invertido.
