What is Staking? This is the full explanation

This time we will review what staking is. Maybe, right now you are also looking for the meaning of what staking is.

We all know that various features appear in crypto investments.

From trading to investing.

Apart from that, there is also another feature in the crypto industry called staking.

Of course, this is a separate question for beginners who have just heard the word and are just getting into the crypto industry.

Also read: Want to Invest in Crypto? Pay Attention to These 5 Things

About Staking, Benefits and Risks

The question of what staking is certainly needs to be answered.

So, we can understand all the features in the crypto industry.

To answer that question, here is an explanation as well as the following advantages and risks.

What is Staking?

Those of you who are looking for answers about what staking is, have come to the right article. Because we will review what staking is.

Staking is an activity that can make crypto asset users benefit by depositing tokens available on pool. So that you get dividends according to the specified APR (annual percentage rate) and APY (annual percentage year).

Also read: How to Stake $VCG Token

Storage and locking of crypto assets is carried out within a certain predetermined period of time. A longer period of time will certainly receive a profit with a greater percentage.

In other words, they will get more crypto assets when they stake for a certain time.

In simple terms, staking is an activity to store and lock crypto assets owned.

Then, it is possible for users of crypto assets to do so to receive passive income from these storages.

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Profits and Risks

After knowing what staking is, this time we will review the benefits and risks that you need to know.

In addition to profits, of course there are always risks in every business. Including when we do this.

Profit

One of the advantages is getting passive income of the crypto assets that you have.

This is said to be similar to making a deposit.

Both have similarities but with different objects and systems.

Where, in a deposit someone will get interest from the money kept for a predetermined period of time.

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Meanwhile, in the crypto industry, the benefits are not money as deposits in banks.

Rather, crypto assets are similar to those being stacked.

In addition, there is also a time period that needs to be determined when you do staking.

After arriving at the specified time period, you will get the percentage that was set at the beginning of the agreement before staking.

You can try this method to get profits without worrying like trading. Also, you can get passive income.

You can do this by using the crypto assets that you have.

That's enough as capital for you to be able to do it.

Also read: Selling Well, 35 Million VCG Tokens Sold Out in 6 Hours

Staking Risk

Not only benefits, but there are also risks that you need to know.

That is a natural thing because every investment certainly has risks.

We need to know the risks as well so we can make a decision whether to stake or not.

This means that there are not only profits but also possible losses.

One of the risks is the potential price movement.

So, for those of you who want to decide on staking activities, you have to be careful in determining and choosing crypto assets.

Also read: Hooray!!! $VCG Token Passes CertiK Audit

Make sure you don't just choose crypto assets to stake based on APY numbers.

But, also pay attention to the potential benefits.

Another very important risk is the risk of hacking.

You really have to be able to determine a trusted exchange for staking to minimize the space for hacks to occur.