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When you think of investing in digital assets, the first thing that comes to your mind is purchasing crypto or mining. Staking is a great investment alternative. Apart from that, it is easy to earn profits during a bull market. However, the problem arises when it comes to the bear market. During this period, traders get fatigued and tend to make losses. For this reason, you have to apply a smart way in order to increase profits. It is important to understand the basics. Let’s dig into everything about staking.
What is staking?
Staking is the process of locking up cryptocurrency in your wallet in order to earn rewards and interest. This option is regarded as an easy way to generate passive income with virtual currencies. You can compare this process with depositing money on a savings account and earning interest in return.
How it works
Staking involves setting assets used to verify transactions on blockchains. This technology is known as proof-of-stake or proof-of-work. It lowers the use of mining tools for keeping the blockchain safe.
When staking, it is ideal to find out the maximum coin supply. Choose a coin that has a fixed supply. This indicates that the coin circulation is limited in the market hence a great demand and higher price. Besides that, the demand is affected by the use of the coin. For instance, if the coin has an application, there will be healthy market demand and value. Check out Polymesh’s staked polyx platform as an example.
History of ZB exchange
ZB.com is a reliable cryptocurrency exchange. ZB was known as CHBTC.com and was founded in early 2013. CHBTC dismissed trading activity in China. As a result, the overseas team took over the operation. In 2017, it changed its name to ZB.com and focused overseas after ICO was banned in China.
Since the platform was established, it is ranked among the top 20 platforms. Based on volume. Moreover, it offers services to Chinese and traders around the globe. In 2020, ZB exchanged token was ranked top 5. Additionally, it has over 10 million users and has traded over $160B since 2013.
Some of the notable advantages of ZB include:
- Low fees: it offers transparent fees from as low as 0.2%. This fee is cut in half when you use ZB coin. Furthermore, traders don’t pay deposit fees but pay a withdrawal fee depending on the crypto.
- Security: the exchange uses advanced safety measures to ensure users’ assets are safe. This includes two-factor- authentication, unique transaction pin, enables SMS and email authentication.
- User-friendly interface: the exchange platform is easy to navigate for newbies and experienced traders.
- Exchange market: it has a wide range of crypto assets to trade against each other.
ZB staking
ZB offers staking services to users. Traders can access multiple crypto to stake. Some of the staking coins include ATOM, DOT, UFC, EOS, and QETH. To get started, you only need to lock coins on ZB and wait for interest. The annual staking interest rates can go up to 30%.
Conclusion
Generally, it is difficult to make profits during a bear market compared to Bull Run. This is why you need to explore opportunities and make money regardless of the price. Experienced traders can use the bear market to:
- Stake
- Accumulate assets and wait for the market to turn around
- Hunt and bargain to get new currencies at a lower price
Staking is profitable but the amount of profit depends on how a trader stakes. The more you stake, the higher the profits. Lastly, don’t forget to check the coin price and value.
You may also like: Moving Average Indicators for Trading Crypto
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