Top-5 ways to stake cryptocoins. Benefits of staking providers

• Posted by Joyy Mountise April 25, 2022 Filed in Business #Top-5 ways to stake cryptocoins. Benefits of staking providers  144 views
  click to rate
  

   

  Staking of cryptocoins is gaining momentum because the sanctions policy of countries has shown the instability of the usual currency. Even skeptics are no longer so categorical about cryptocoins because you can really earn money on them without making much effort. Let us take for example staking which is a great alternative to bank deposits. But at the same time it is important to understand that the profitability in this case depends on the chosen platform for staking. What are the staking options? And why should you look at staking providers?

  Morningconsult: Already 91% of US consumers are familiar with cryptocurrencies. This suggests that interest in staking will only increase.

  What methods of staking are known today?

  You can do staking on your own. This process can also be entrusted to third parties, but first things first. Let's consider each of the ways:

  

   

  Self staking

  The validator, which is one or more people, is responsible for the correctness of transactions. They work with blocks and find the right ones among them, while the vote of the validator who has more coins is taken into account first of all. Validators receive rewards for their services in the form of new crypto coins from the network. To become a validator, you need to have coins in your crypto wallet. PoS blockchains have an inflationary mechanism so payments are made at the expense of inflation.

  Crypto exchange

  Staking cryptocoins is similar to depositing in this case, i.e., it is a service that provides services for long-term and guaranteed storage of coins. Staking on a crypto exchange provides users with a stable and cyber-proof validation. To become an agent the validator nodes are tested for adherence to the chosen blockchain as well as the presence of a permanent and secure infrastructure. Cryptocurrency exchanges have fixed staking plans that offer a stable percentage of profits.

  Staking pool

  This is where stakers pool their funds to increase their chances of becoming a validator. Profit in this case is distributed in proportion to the contributions of each holder.

  Staking on Defi

  It provides an opportunity to receive passive income in decentralized financial systems in which you can store cryptocoins and tokens. Users choose services and applications specially created on the blockchain for staking.

  Staking providers

  This method works by analogy with an Internet provider. In this case a specialized company or firm is supposed that provides coin holders or token holders with a whole infrastructure for staking. Additional tools and functions are provided for convenience.

  Why interest in staking providers has increased

  

   

  Staking providers use various technologies that ensure high network availability and effectively protect against fraud and cyber attacks. According to experts, it is easier for hackers to break into a crypto exchange than a cryptocurrency protocol or wallet. Cryptocurrency exchanges Bithumb ($40 million damage), Mt. Gox ($460 million stolen), Bitfinex (over $70 million in damage), Coincheck (over $530 million stolen), BitGrail ($170 million stolen).

  The situation is no better in liquidity pools as fraudsters can hack the protocol to which the smart contract belongs. As for DeFi, hacks on services began literally when they began to appear and successfully launch. There were about 20 hacks in 2020 alone. In addition, about $500 million was lost due to DeFi exploits in 2022. The first hacking was carried out by hackers right on January 1.

  In terms of security staking providers provide more security. In addition, they provide more options. Staking does not require professional knowledge. Such services provide detailed information as well as a simple interface that is convenient to use from any device. Among the popular providers are Kraken, Allnodes, InfStones and others. In addition, there are already providers that allow staking PoW cryptocoins using Cross Staking technology - these are Oreol Stake and Prime Stake.

  Staking providers offer various options that make staking easier. One of the functions is monitoring and analysis of staking.

  Cross Staking (Cross-chain Staking) - unprecedented opportunities in staking

  

   

  When choosing a staking provider consider the technologies that the service uses in its work. The speed of transactions, security, type of available crypto coins will depend on this. Excellent staking opportunities are offered by the new Cross Staking technology which Matrix Network has been working on since 2018. The developers managed to create a unique technology with a block confirmation speed that is 2.5-3.5 times higher than the main network. High energy efficiency and unprecedented safety due to the high protection of the primary and secondary circuits are no less significant advantages of the development. The main uniqueness of Cross Staking lies in the fact that the technology allows staking Proof-of-Work coins which was previously impossible.

  Our feedback on Cross Staking providers

  Oreol Stake and Prime Stake providers that have implemented Cross Staking technology are the undisputed leaders among staking providers as they allow staking Proof-of-Work coins which was simply impossible before. The innovative Cross Staking technology allows blockchain technology to scale networks in an environmentally friendly and easy way. Thanks to it users will be able to receive higher rewards and at the same time not worry about hacker attacks as it provides a high level of protection.