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The many advantages of staking cryptocurrency include its potential high returns, minimal costs, and its effortlessness.
The Benefits of Staking
Staking presents a low-effort passive investment strategy. It offers a comparatively stable revenue stream, that does not have to require anything beyond locking your crypto for a set period and allowing it to be used to support the protocol. Your funds can then be put to work to vouch for the accuracy of blockchain transactions. This can often be done directly through your wallet, all while you get on with other things.
In addition to offering high returns averaging 10%, another major upside to staking is that it is a very low-cost endeavor, especially when compared to passive investment strategies for traditional financial assets that can involve much higher fees.
The Characteristics of a Great Staking Opportunity
As with any form of investing, some staking opportunities are lower effort, greener and more lucrative than others. Using the example of ArbiSmart, a popular interest-generating wallet and financial services ecosystem, let’s look at how a smarter staking approach can make a major difference.
Higher Profit Potential
Profits from staking tend to average between 5% and 15% However, at ArbiSmart, you can receive well over 100% profits a year from staking , depending on your account level. You will earn generous rewards, just for placing your funds in a locked staking plan, for a chosen time frame ranging from as little as one month to up to 5 years. You will earn a higher return the more capital you stake, the longer the staking period and the more RBIS, the native token, you own.
Additionally, according to recent analyst projections, the RBIS token is expected to rise 950% by the end of Q1 in 2023, boosting profits for platform users with unmatched capital gains.
A More Secure Staking Option
There are a couple of risks involved in most staking opportunities that ArbiSmart users are fully shielded against.
Firstly, if for example, you want to stake Ethereum, you need to stake a large number of tokens to become a full validator, so if the ETH price falls, your capital will also lose value.
In addition, your exposure is increased by many automated market making protocols. So, tokens in a staking pool may be vulnerable to bad actors, including dishonest developers or whales who withdraw all their liquidity at once. This could result in a price collapse, since there is not enough liquidity remaining for other participants to access.
However, at ArbiSmart whichever direction the market is moving, and whatever the actions of other staking participants, you will receive the same, consistent return on investment for the entire period in which your funds are locked in a savings plan.
Moreover, in a recent article, Kryptomonitor.com pointed to ArbiSmart as a leader in the security offensive to restore confidence in the crypto markets, in the wake of the FTX scandal. The article notes that the EU registered project “never use user funds for business expenses…has been operating with proper licenses since early 2019…and has no record of hacks or breaches.” It also recognizes that ArbiSmart is among a select group of transparent, good actors in that it is not affiliated with any other crypto services provider, it is not leveraged and do does not use RBIS, the native token, as a means of manipulating market valuation for overly leveraged positions. There are securely held detailed company and accounting records, with user funds separate from those of the company and compliance with the strictest risk management protocols.
A Greener Alternative
Proof of Work (PoW) staking involves a huge energy cost, as miners require immense computer power, for a higher hash rate, which translates to better rewards, all of which has a significant environmental impact. In contrast, ArbiSmart offers an energy efficient alternative. You can earn exceptionally generous rewards, the more coins you stake, without negatively impacting the environment.
The ArbiSmart example shows that staking can be a great, secure way to put your crypto to work and with the right platform, it can provide an exceptional revenue opportunity.
Sign up with ArbiSmart, within 72 hours of this article being posted and lock €5K worth of any supported currency for a minimum of 24 months, to receive a bonus of up to 35%. The bonus will be given in the same currency as the locked balance and will be locked with the principal deposit for the duration of the plan.
Stake funds today, and contact the team via chat, referencing this post, to claim your bonus.
*This article has been paid. The Cryptonomist didn’t write the article nor has tested the platform.
Source: https://en.cryptonomist.ch/2022/12/22/best-way-safely-stake-crypto/