What I think about Staking

When I first started dealing with Crypto and actually realizing the potential it had, there was mining and only mining POW (Proof Of Work). It is awesome if you have the hardware and you had an idea of what you were doing.

Of course, I tried to learn how to mine and since I had no idea what I was doing I had to use crap software that eventually destroyed a bunch of my tech. I will not mention these platforms because I am not here to blast any companies because I am sure some people loved them and still do. I was too much of a noob back then to realize how much damage it could do.

Now that it has been a good amount of time, there are new coins out there that you do not have to mine. Instead, you have to Stake them. The more you have the more you make and you also help out the project.

This is what comes up when you search "What is Crypto Staking".

This sounds way easier than mining, but I still do not understand how you holding your Crypto in a wallet helps anything, and why you are getting paid so much just to hold your Crypto in Certain wallets. A good example is Hydra.

This Crypto has the highest APY (Annual Percentage Yield) and could make you a living wage if you had enough t invest in the project. They have a whopping 156% APY. That means that if you held $10,000 in Hydra and staked it you would make around $50 a day. Well at today's price. Prices fluctuate so much it is hard to keep track of them. My math might be a little off but it was a rough guess.

I know what you are thinking, well that is good and all but why can you make you so much. What makes it so that you holding your money makes you more money. So let us go a little deeper and really find out what is going on in the background.

Here is a site I found to be very informative.

https://hackernoon.com/staking-the-new-trend-of-generating-passive-income-in-the-world-of-cryptocurrency-eb210303s

So staking started way back in 2012.

The word Staking comes from the term POS (Proof Of Stake). This allows a person to hold a certain amount of coins in a wallet which in turn helps validate transactions. You holding your coins in their wallet helps keep the system running smoothly, so you get paid for supporting that Crypto. To be honest this sounds way better than Mining.

What I shared above is from the same website I shared above. I think that they explained this very well.

Since the article I got my information from has been written, there have been other upgrades to the Crypto world when it comes to Staking.

It is called Cold Staking. The picture above is supposed to be a cold stake lol. I did not want to use someone else's work so I had to use the closest thing to what I was trying to get across from Unsplash.

This is what I find when I search Cold Staking on google.

This is by far the best way to Stake your coins I think. You do not have to lock them up for any amount of time, your funds seem more secure, and you still get close to not the same APY.

I know all of this sounds too good to be true but hey the future is now. I know a lot of people think Crypto is a scam or it is just a big bubble waiting to burst. Which the bubble could be true for Bitcoin because of mining difficulties. What bitcoin did was give us a foot into the future.

I remember just not 20 years ago I still had to use dialup and we had flip phones. Look at technology now. It has boomed so fast it is hard to keep track of. We are witnessing the next jump in technology and I am proud to be a part of it.

https://fossbytes.com/history-computer-first-generation-computer-third-generation/

I was born in the '80s so I remember seeing some of these computers as I have grown up over the years. It has been amazing watching how fast technology is growing. You do not realize it until you sit back and do a little research. I think we are going at an alarming rate and now it is just a waiting game to see what country gets the best tech to become numero uno if you get my drift.

I have veered off the subject. Staking has come a long way and I think will be the new way of Crypto. Mining takes too much computing power to be long-lasting. I can see in the future the price of Bitcoin falling very low and some other Crypto taking the lead. One that has Staking and one that is faster and more reliable.

Now you have to remember, I am just a noob. Some guy gets satisfaction from trying to find a new way of life because the old way was not working. The future is now and I have never felt more alive.

I hope everyone has enjoyed my article. If I have gotten any information wrong please let me know in the comments and I will fix it. I appreciate everyone who took the time to read this. I would appreciate it if you put down any ideas you might have in earning and learning about Crypto!

Lead image by Unsplash