There are many ways to create Wealth with Crypto, you can HODL it, trade it, mine it or stake it, but what is crypto staking? In simple terms, staking is the act of locking cryptocurrencies to receive rewards. Cryptocurrencies reward people for securing their networks.
Bitcoin uses POW (proof of work) or mining. Mining has its drawback you need to buy mining equipment, know how to set it up, and consume a lot of power. Mining BTC is not as viable as it used to be either.
Staking is a good alternative consensus mechanism, which is just a way to verify and secure the transactions. POS (proof of stake) staking, unlike mining, does not use lots of power and is easier to set up.
Staking – How it Works
You need to own or buy cryptocurrency to stake it. Once you own some crypto, you can stake it, or lock it up in a smart contract. A “validator” will be rewarded with new coins for locking their assets and proving a service to the blockchain.
Now there are a few ways to stake your tokens. You can set up and run a master node your self. This requires you to have the knowledge to run the node, the network needs to be run 24/7, and there is usually a minimum limit required to start. For example, you will need 32 ETH to start running a node for Ethereum.
The easier way to do it is to add your tokens (no minimum amount required) to a staking pool. You won’t make the same returns, but you also don’t need to have the knowledge to run a node 24/7or the initial cash investment. Today I will introduce you to Pool by Cake, I have been using them for months and can not fault them.
Staking Made Easy
At Cake, you can join fully transparent masternode pools to earn staking yields of up to 37% in real-time, without the complexity of running nodes yourself. This is a much easier option than mining or running a node yourself and can be a great way to earn some passive income from your crypto.
Cake provides you with an excellent opportunity to make some extra returns on your coins. You have four options for staking at Cake.
- Dash – 9 Nodes
- DeFi – 303 Nodes
- PIVX – 16 Nodes
- Zcoin – 39 Nodes
All accounts can be set up to compound your returns automatically, so you don’t have to manage your account to re-invest your rewards actively.
Cake is also 100% transparent, and they post all the rewards and transaction IDs so you can verify it is all legitimate. Cake really has made it simple to stake your coins, let me show you.
6 Steps to Stake
- Open an account at ==>> Pool by Cake
- Verify your ID
- Set up 2FA, to secure your account
- Buy or deposit crypto @ Pool by Cake.
- Stake you coins
- Collect interest
It really is simple and safe at Cake. They are 100% transparent. Just click on the link above and follow the prompts to open your account. Next, you need to be verified. It will normally take a day to get your ID verified, but that is the normal process for any legitimate crypto account.
I would highly advise setting up 2FA to make your account as secure as possible. If you don’t know about 2FA you can read about it in my post Understanding the Crypto Lingo – It stands for two Factor Authentication. Once your account is secure, you can buy crypto directly on the Cake platform or transfer crypto from an external wallet. Then you need to decide what coin to stake and click the stake button.
I have set my account up so that my rewards are re-invested, you can withdraw rewards if you choose to handle your account manually. For me, it is a long term investment, so I Auto-compound and check my account regularly to make sure I am being paid.
- Defi 37% APY
- Zcoin 4.8% APY
- Dash 4.7% APY
- PIVX 4.2% APY
What Is the Annual Percentage Yield (APY)?
The annual percentage yield (APY) is the real rate of return earned on a savings deposit or investment, taking into account the effect of compounding interest.
Pretty good I reckon when you compare that to what you can get at the bank. I think staking is a great way to create some extra Wealth with Crypto.
Why I Trust Pool by Cake
Any investment comes with risk, so what is the real risk with staking your coin at Cake? There are real risks when staking, but I consider these minimal when using Cake. There is a risk that the smart contract could be hacked, while doubtful it can happen. Validators can be penalised for not running the nodes correctly as well, and this can affect rewards.
I trust Cake because I have been investing with them for months now and have not any issues. They have a great team of experts passionate about what they do and are truly committed to being 100% Transparent. Yes, there are risks with investing, but I believe with Cake they are minimal.
They are the real deal and are dedicated to making you the highest possible returns in a safe manner. The beauty of using a service like Cake is that you can invest any amount no matter how small and you have the ability to stake or unstake at any time. You can make deposit or withdrawals when even you like
Because they are using multiple independently provable nodes, the risk of problems is minimised. They also publish all the staking rewards for you to view if you wish.
Everything about Cake has been a positive experience for me so far, and others agree with me you can read their reviews here on Trustpilot.
If you want to do some research on staking crypto and read more about staking risks see what Staking Rewards has to say stakingrewards.com is a great place to start your research for staking crypto.
Final Thoughts on Staking
I mainly trade to create Wealth with Crypto, but I also do HODL and invest some as well, I have only started with a small amount in Cake, but it has been paying and working seamlessly now since its inception. They continue to add features and more services, they have recently added Liquidity Mining to their investment choices. I have just invested in this as well it has a 225.84% APY. I will do a future post on Liquidity Mining I want to gather a bit of real live data for you about it first.
Next time someone asked you what is crypto staking tell them to take a look at CAKE DeFi use the link or this code 921297 because you get $20 worth of DFI when you sign up and make a deposit and If you use a referral code, both you and your referrer get an extra $10! That’s a win-win. I can honestly say Cake has been an excellent crypto investment platform for me and that I would highly recommend you have a look and get your piece of cake – What are you waiting for?
Be the Best you can Be
DISCLAIMER: I am not a financial advisor. This is not financial advice. The content and material I provide on 2dsirecrypto.com is my opinion only and general in nature. Always do your own research before investing any money. You should always understand the risks involved in trading and investing and seek advice from licensed professionals before undertaking any investments of your own.