Crypto Staking: How to Get Passive Income
The world of crypto offers its investors a variety of ways to increase their earnings. While some invest in mining to increase their holdings, others opt for crypto staking instead. Crypto staking is the process of “locking up” a piece of your cryptocurrency to contribute to the blockchain network over the long term in exchange for a return on their investment.
What is Crypto Staking?
As the need for more efficient and cost-effective transactions processing became more prominent, a consensus mechanism Proof of Stake has emerged. Instead of relying on miners solving complex maths problems, it validates transactions by people who are invested in the blockchain.
Essentially, the users put their tokens in for a chance to add a new block onto the blockchain in exchange for a reward. And their staked tokens act as a guarantee of the legitimacy of any new transactions. Interestingly, the system automatically chooses validators based on the number of tokens staked and how long the user has held them. So, the more invested a user is, the more rewarded they can be.
Benefits of Crypto Staking
Apart from creating a passive income stream, crypto staking has several advantages.
- It does not require any additional investment into hardware like Proof of Work does;
- It is a more environmentally friendly way of validating transactions;
- It contributes to the blockchain’s security and efficiency;
- It can have a very high APY, depending on the project.
What is KokoStake?
KokoStake is an example of a staking programme that offers its users a considerable return on investment. This staking platform was developed by the KokoSwap ecosystem. KokoSwap is a one-of-a-kind platform that integrates the greatest use cases of NFT trading, NFT gaming, and staking. It is a one-stop crypto platform where users can stake and purchase digital assets while having fun playing games.
KokoStake enables users to stake Ether or KOKO tokens to earn high yearly interest and generate passive income. The staking program lasts two years and has a one-year minimum staking duration.
Staking can be an effective technique for crypto investors to earn interest and incentives on their assets. Additionally, it can introduce users to the governance and validation aspects of blockchain networks, which may be of interest to certain investors.
Staking is similar to owning a stock and receiving dividends, or even as depositing money in a bank and earning interest. It can be seen as a low-effort method of growing funds, but just like any investment, it requires some due diligence and research.
KokoSwap is a unique platform that combines the thrill of NFT gaming with the advanced rewarding functionalities of Decentralized Finance. The platform offers the ability to trade, invest, earn, play, and win with key features such as NFTs, staking platform, and NFT gaming.
KokoSwap has always been proactive in sponsoring various NFT events and has helped several famous artists launch their NFT collections available on an invite-only marketplace. Apart from the NFT marketplace, KokoSwap’s NFT gaming is a great tool to earn $KOKO tokens and generate passive income sources by staking digital assets such as Ether and $KOKO.