What is Staking and What are Its Benefits
More than a decade after Bitcoin was first introduced, cryptocurrencies have attracted millions of users, and the crypto market is today worth billions. Even though the recent crypto winter cost the cryptocurrency market a whopping 2 trillion in value and cryptos have experienced a bear trend since mid-August, investor interest in the market is still strong.
Staking has become more and more popular as the crypto and blockchain world has evolved. Staking is a process of locking up or delegating cryptocurrency holdings in exchange for certain benefits. For investors who have already invested their hard-earned cash into digital tokens like Bitcoin and Ethereum, it presents a way for them to earn rewards and gain some voting rights by locking up their holdings for a specific amount of time.
FOMO Lab’s The Avenue has all the features seen on NFT marketplaces with the integration of the ability to STAKE your NFTs and also able to comment on your favourite digital artworks. Users will have full control over their digital collectables and present a “one-stop-shop” for the Web3 community that collect and trade their NFTs.
What’s more the FomoSTAKE dApp will enable holders of the $FOMO token to stake both $FOMO and $FOMO LP tokens to earn passive $FOMO tokens in relation to the lock-up period and APR of the staking pool in which the holder participates. Community members can earn up to 32.4% APR on staked $FOMO.
Cryptocurrency staking gives investors a way to contribute to their blockchain network in return for rewards in the form of additional tokens or coins. Instead of generating new tokens through energy-intensive mining, developers can simply use staked cryptos. The blockchain network will put these staked cryptocurrencies to work and share the revenue they generate with investors.
This allows them to earn passive income as crypto staking is a mostly passive activity that requires little investor input or participation. Once you have staked part of your holdings, you won’t have to do anything to earn rewards. This is similar to how regular assets can earn you dividends or interest, and the rewards offered by crypto staking often surpass interest in savings accounts.
Your return on investment will be even higher if the staking wallet compounds your interest. And since it needs less computing power and has no need for specialized equipment, staking allows you to earn your rewards more cheaply compared to mining. It presents a means for cryptocurrency investors to leverage assets that they want to hold for a while to grow their portfolio.
Staking allows them to participate in and support projects they believe in, at little cost and with a strong possibility of high earnings. Furthermore, crypto staking is great for the environment and eases the environmental impact of crypto operations by reducing the need to mine new tokens.
However, cryptocurrency staking isn’t completely risk-free as the crypto market can be quite volatile. Since you will earn rewards in crypto, downtrends in the market will affect your locked holdings and you may lose some crypto during a downturn. Investors will not be able to access their staked holdings until they “unstake” them after a predetermined period of time. This lack of control, coupled with volatility, may put some crypto investors off staking.
Find out more about Fomo Lab Here:
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Website — https://fomolab.io
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