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Is Cryptocurrency Staking better than a Saving Account?

The introduction of cryptocurrency has caused a major disruption in the financial world by revolutionizing traditional systems and eliminating inefficient gatekeepers in various fields. By pushing against the boundaries of what traditional products can offer, DeFi presents us with countless opportunities and possibilities.

While cryptocurrencies are often created to solve certain existing inefficiencies within the financial markets, it begs the question:
How does staking your assets in cryptocurrency fare in comparison to putting it into a savings account with the bank?

Savings Account

To put things into perspective, we must first consider how much you could possibly earn in a year by putting your assets in a savings account. The bank typically rewards an investor for holding money in their bank by giving investors interest. Most banks usually pay less than 1% APY in recent years which can barely hedge against inflation. With reinvestment of interest earned, you may be able to earn a decent amount of money by making the right calls and compounding it over a long period of time.

Cryptocurrency Staking

Now, in contrast to putting your assets in a bank, the idea of cryptocurrency staking is pretty similar where you earn rewards by locking up your assets with a DeFi platform. CoinWind currently offers a 6–23% APY if you stake your crypto assets with us, depending on which token and what lock up period you are interested in.

At CoinWind, we strongly believe that crypto staking as an investment is far superior to a savings account for many reasons other than the sick contrast in APYs.

An important factor to note is that staking your money offers you a better deal in terms of liquidity. It is true that putting money in a savings account and crypto staking both involve locking up your money for a certain period of time. However, it is crucial for us to realize the penalties that comes with forfeiting the respective options.

In the event that you wish to break your contract and remove your funds from a savings account, you will have to forfeit all or at least some of your interest earned. Crypto staking, on the other hand, doesn’t penalize you for unstaking and you wouldn’t have to incur any losses. We also have to bear in mind that a savings account contract usually lasts for years as compared to staking, which has a much shorter lock-up period.

If that is not enough to convince you to come on board the crypto train, think about the wonders of crypto and it’s drop-dead sprint since its inception. With crypto still being in its relative infancy, wouldn’t it be exciting to be one of the pioneers of such a revolutionary financial era?

Boundless opportunities and prospects await, come hop on the bandwagon before it is complete.

What is the catch?

While crypto is often lauded as a transformative and lucrative investment we should consider the underlying risks that staking could possibly have. The banking system has a long-standing history with traditional that proved to work albeit financial crashes or disasters. As compared to staking, where DeFi is still in its infancy with a lot of room to grow, therefore exposing your assets to market volatility or crypto theft.

Although crazy market swings are inevitable in the crypto space, CoinWind maintains a high level of security with your staked assets. We provide full transparency to our users by indicating the address node to which the funds are pledged to. Users can refer and check if the pledging balance is consistent with the mainnet. We will also do multi-signature processing for staking to increase the security level of assets and submit all codes to an audit agency for confirmation.

· CoinWind Website (Start Mining)

· CoinWind Twitter and Telegram Channel (For the latest news)

· CoinWind Telegram Community

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CoinWind

CoinWind

Defi Ecological Smart Mining Financial Platform