If you have read my previous posts you would have found a common theme that is I am a hardcore Bitcoin maximalist. I firmly believe BTC is the king of crypto and will continue to be the leader for decades to come. I had however been looking for some altcoins to diversify my portfolio mainly with the intention of having some possibility to cash out if needed as I don’t plan to sell my BTC anytime soon.
Why I never trusted Staking!
I know that options of staking have been around for years but somehow I never trusted them. The key reason was that most of initial staking plans involved handing over your crypto to a third party which will control your coins and give you some recurring rewards. I never liked this concept as I know very well that “not your keys, not your coins”. With new forms of scams popping up every day I never had the faith to try out any of these staking platforms
My first experience with Staking!
Recently I did a post on Atomic Wallet and how was my experience using it which you can find here - https://www.publish0x.com/crypto-projects-sams-reviews/atomic-wallet-big-bang-or-damp-squib-xnlxjnd
While reviewing Atomic wallet I noticed they had a separate section for staking coins. As I was checking all functionalities of the wallet I decided to test the staking feature with small amounts of crypto. I transferred some Tezos I had got from Coinbase Earn and the faucet and staked it immediately. Next I moved some USDC, BAT and DAI I had been rewarded from the crypto platforms I am using and exchanged them to other coins which could be staked on Atomic.
You can see in the screenshot below that I have already experimented with most of the coins which are available to be staked on Atomic.
Atomic has been adding new staking options regularly and some coins still have issues with the staking process but Atomic is actively fixing out these bugs regularly.
While Tezos and Cosmos staking process is pretty streamlined the new coins staking still has a beta feel to it, This is natural and expected as some of these coins are very new to the market and will evolve and stabilize in the coming months.
Very soon I will be doing a detailed review on each of these individual staking coins and what’s my opinion and experience with them, so Stay Tuned!
How will 5%-7% staking rewards make me a Millionaire?
While considering the earning potential of Staking coins you have to consider several factors:
Growth Potential- Keep in mind that most of these coins are very new so a Algorand coin which is worth $0.2 might be worth $2.0 or even more in the future. This means that the dollar value of your return will not be 5-6% it will in fact be 50-60% of your return. If you HODL them long term some of them might even do a 50X or a 100X making the return exponential. If you have been in crypto space for some time and do serious research for picking the coins to stake then you will surely get enormous gains. As the coin value grows so does your staking rewards.
20% return is better than 6% return? Not at all. You need to consider the strength and fundamentals of the project. Taking an example if you compare Tezos giving 6% return and BAND token giving 17% return then Tezos is definitely a better pick. Tezos has the potential to grow 10X in the coming years and the 6% return will effectively become 60% return each year and a risky token like BAND might crash so the 20% return will not even be worth 2% effectively
Power of Compound Interest- If you have strong faith in the staking crypto then I would advise you to reinvest your staking rewards back into the stake. This will compound your year to year return and give exponential earnings over a 5-6 years HODL
If you are in the crypto game for the long term you must include some staking coins in your portfolio for the long term.
With ETH and ADA soon expected to be available for Staking the demand is going to explode.
Hope you found the article useful and if there is anything specific about staking you want more details on then do let me know.
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Posted on Read.Cash at - https://read.cash/@SamBTC/staking-crypto-strategy-to-make-millions-b64f2310
Cryptocurrency & Blockchain
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.