Crypto Assets also Increase With Staking! An Asset Management Method Easier than Mining

Crypto assets are accumulated and managed monthly in the amount of 10,000 Yen each through staking. Perhaps, instead of mining, staking may get much more attention as a future asset management tool. There is already a sign that this is occurring, and in some cases the currency of 1337 has achieved over 40% annualized investment performance.
As staking is rewarded by the amount of crypto held, you can expect great returns from daily performance and future appreciation of the currency. In this article, I will demonstrate the features and mechanisms of staking in an easy-to-understand manner. If profitability of mining is getting worse, why not try staking!

Characteristics, benefits, and drawbacks of crypto asset staking


The method of staking crypto assets is an “asset management” method that has recently began to draw attention. For example, with a stock investment, you can receive dividends if you hold a specific stock (only when the corporation has profits). The staking of crypto assets is a similar mechanism, and if you hold certain crypto, your funds will increase similar to dividends.
Although staking is like a divided producer displaying what can be done depending on the crypto brand and what cannot be provided, it basically means that if you hold a staking currency you can receive that currency on a regular basis.
The name staking comes from “Proof of Stake.” This is a term that is closely related to mining of crypto assets, so let’s explore the features while explaining the differences between mining and staking in the next section.

The difference between staking and mining crypto assets

Mining, like staking, is an asset management method for crypto assets. In mining, you register on a specific service site and download dedicated software from there. If you start the software, your computer will automatically start calculation processing, and you will be able to receive crypto assets in about 10 minutes (in the case of Bitcoin).
This mechanism is called “Proof of Work.” The person who provides the work (the computing ability of the machine) gets the right to mine according to the computing ability. The higher the specs of your computer, the higher the mining rewards.
The previously mentioned “Proof of Stake” is a little different from the above. Based on your stake (crypto holdings), it is a mechanism to obtain mining rights. The former was the work (computing capacity of the machine), but the latter is staking (the amount of crypto held). With staking, “the person who holds more crypto gets more rewards.” The benefit is that you do not have the burden of machine like proof of work, and you only need to hold the crypto.

Benefits of Staking

The benefit of staking is not to put a burden on a machine like through proof of work (mining). Mining often requires a computer to be running for 24 hours, and there is a risk that it will cost a huge amount of electricity or it may break down without using a cooling fan. However, if you have a certain amount of a crypto holding, you can just leave it alone and acquire more crypto. All you have to do is download a dedicated wallet and then launch the app.
For example, a typical staking wallet in the “QT wallet” moves the staking crypto into it and leaves it there. Then, as time goes on, the system will automatically receive dividends and increase the amount of currency originally owned.

Drawbacks of staking

Staking as easy as it is, doesn’t provide much in rewards. Depending on the crypto, mining is better when it comes to profitability. However, if you do not need to buy high-spec dedicated devices such as an ASICs machine (prices at about ¥ 200,000), you can easily participate with only a smartphone.
On the other hand, staking requires the user to have a large amount of that crypto, which can be a major disadvantage. Proof of Stake does not have the right to receive a rewards without at least $10,000 invested in a particular cryptocurrency. Depending on the price of the currency, you may need to invest at least a minimum of 1 million Yen.
When staking, it is logical to choose the lowest price. In addition, holding a crypto can increase the price and provide the user a big profit when it is sold in the future. So, even if the price is high, be sure to choose a currency that has further growth potential.

Available cryptos and where to purchase them


The following brands are compatible with staking.
・ADA (Cardano)
・Qtum
・NAV coin
・Stratis
・Deep Onion
・Hshare
・PostCoin
・1337; etc.
Recently several stakable crypto have began to appear with more options being invented. Famous currencies such as Bitcoin and Bitcoin Cash are compatible with mining (proof of work) rather than staking. However, the 2nd largest market capitalization in Ethereum will soon convert from mining to staking.
The cryptos corresponding to the above mentioned staking are not handled by domestic exchanges. Therefore, you need to open an account on a foreign exchange and purchase it there. Here, we will introduce recommended places for overseas exchanges.

Binance

Binance is the most popular crypto exchange in the world. It can be said that it is the world’s most famous crypto asset exchange.
Binance has more than 160 currencies and many crypto brands that allow staking. In addition, the transaction fee is 0.1%, which can be used at lower costs than domestic exchanges.

CROSS exchange

CROSS exchange is an overseas exchange that has been attracting attention recently. Above all, it attracts many Japanese investors in that it supports Japanese. The number of cryptos handled is also increasing rapidly. You can also buy Qtum, which is not available in Japan. Cross exchange tokens are also popular on CROSS exchange, which have dividends of up to 80% of the exchange’s revenue.

Specific methods of staking

To get started with staking, follow the basic steps below:
Step (1): Download a dedicated wallet
Step (2): Launch and synchronize the wallet
Step (3): Download the blockchain (requires considerable time)
Step (4): Wallet Encryption and Restart
Step (5): Save Password
Step (6): Activate wallet with password and start staking
Whenever you choose a particular crypto, there should be a dedicated wallet for it. Download the wallet, follow the above steps, and it will automatically being staking even if you just leave it alone.

Summary

Staking is a hot topic as a new asset management alternative to mining. Being able to operate in a way other than gains on sale in such transactions is also an attraction with crypto investments. There are not many cryptos that can be staked, but there should be more varieties in the future. Mining is already highly competitive and difficult to monetize, so it’s not a surprise that the next step is to focus on staking. However, in the case of staking as well as investing, be sure to check the crypto’s information thoroughly. It is recommended that you select a crypto with great potential that is likely to rise in price as much as possible, as it will often be held for a long period.