5 Ways to Invest with Staking to Earn Crypto 

Staking is a way to earn crypto rewards by helping to securely verify transactions. Here are a few examples of how you can use the rewards earned from staking.

1. Leave it staked

The crypto rewards you earn are a percentage of the amount you’ve staked. This means that the more ETH staked, the more rewards you earn. When you leave your rewards in your staking wallet, it will automatically be added to your stake, your rewards will grow, and your earnings will grow exponentially. In traditional finance, this is known as compound interest.

For example

• Let’s say you have $100 in a savings account that earns 5% interest compounded annually
• At the end of the first year, you will have $105
• At the end of the second year, you will have $110.25. And so on.
• Over time, the amount of interest you earn will increase, even if the interest rate stays the same. The same is true in staking.

It’s a good option if you want to continue growing the amount of crypto you hold while minimising the amount of effort required.

2. Diversify into other coins or assets

You can take the crypto rewards you’ve earned out of your staking wallet and re-invest them in other cryptocurrencies or assets. This enables you to explore a wider range of investment opportunities and use cases, as well as helping to spread the risk on your investment.

3. Pay off debt

Investment and debt can be a balancing act, but it’s important to remember when staking that you are earning more cryptocurrency. This might go up or down in value, so while you may end up with significantly more cryptocurrency, the monetary value in your local currency may still be lower, or much higher, than when you started.

Having considered this, if you have debts, using your earnings to pay off debt means you can reduce one expenditure while leaving your initial staked investment untouched.

4. Take profits

It’s important to take profits when investing, as it allows you to lock in your gains and avoid losing money if the market turns. Staking provides a great opportunity to do this while holding onto the crypto you originally bought. It also means you can sell according to a schedule and strategy, helping you avoid the temptation of selling too late or too early and miss out on potential gains.

5. Go long

Dollar cost averaging (DCA) is an easy entry into cryptocurrency investing, as it removes a lot of the uncertainty involved in trying to time the market.

You further minimise the risk of short-term price movements by investing your regular rewards into an asset like bitcoin, one of the less volatile and most trusted cryptocurrencies on the market.

DCA encourages habitual saving and has the potential to turn market volatility into an opportunity. Earnings from staking are paid out regularly, and you could use these earnings as a way to DCA that doesn’t require additional financial outlay.

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*This information should not be construed as a solicitation to trade. All opinions, news, research, analysis, prices or other information is provided as general market commentary for information purposes only and is not investment advice or recommendation. We always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.

About: Andries vanTonder

Over 40 years selfemployed 

He is a Serial Entrepreneur, an Enthusiastic supporter of Blockchain Technology and a Cryptocurrency Investor

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