Choosing how you are going to earn cryptocurrencies besides forex trading is not an easy job, because there is a lot to consider. Crypto mining is also a viable option, so why is Ethereum staking more appealing for the rest?
In this article, you will find out what are the advantages of choosing crypto staking over mining and what you should take into consideration before getting started. By the end of the day, you don’t want to be disappointed by this service, so let’s set up our expectations right.
The advantages of Ethereum Staking
Crypto staking is known for its friendly approach - over its users and natural ecosystem.
In contrast to crypto mining, Ethereum staking doesn’t need external software or cooling systems. Everything is done on the computer or mobile, so the electrical power spending is not increased by using the service.
Mining, however, hit the annual electricity consumption of 129 billion kWh, according to BBC. It’s not environmentally friendly, and it goes against our generation’s principles.
Another advantage is set up by the staking process itself. It’s easy and intuitive - all you need is to deposit your assets for some time and earn daily interest until you choose to withdraw the money. That’s it.
Security is also a top benefit of this feature since malicious actors need to own at least 51% of the total staked cryptocurrencies to get access to your account. If they own that much money, trust us, there’s no need to get more.
What to take into consideration before investing
Although it is a friendly way to generate passive income, you should not expect to become a billionaire just by staking your assets.
Since everybody who puts their assets in the staking pool is eligible for daily rewards, it is clear that their value is not going to be high.
You can see clearly on their website that the total reward rate is 0.53% per month. So your gain value depends on how much you choose to stake. Regardless, it is still a great way to get some pocket money.
Another thing that you must be careful about is that the value of your assets can decrease while they are staked, and you can’t withdraw them sooner.
In the end, the decision is yours. But don’t forget that everything has its risk, and we truly win when we are willing to get out of our comfort zone.