Staking is often said to be crypto’s equivalent of a high-interest savings account. It’s about putting your digital assets to work. So instead of just holding them in your wallet, where they’re not doing anything, you can use them to invest in the health of the underlying network and get paid for doing so. With staking, the more crypto you stake, the higher the rewards will be, with some networks offering rates that go well above and beyond anything you might get from a traditional bank savings account. When staking first appeared, it was pretty difficult to get involved. Originally, to be able to stake crypto you had to become a network validator, which meant investing in some powerful hardware. It also required technical skills to install and run the necessary software to support the network. There were also significant minimum stakes required to become a validator. For instance, to become an Ethereum validator, one must stake at least 32 ETH , which is around $74,000 at today’s rate. Staking Made Simple Fortunately, staking is no longer such a challenge thanks to the emergence of in-app staking via Venga . Through the Venga Earn function on Venga’s all-in-one crypto app, staking is made so easy that anyone can do it. Gone are the technical requirements, the minimum stakes and other barriers to entry. Now, staking is as simple as making a couple of clicks, paving the way for much broader participation in the blockchain economy. The beauty of the Venga app is that you only have to buy some cryptocurrency in the first place. Once you’ve loaded up on crypto, you can immediately start putting those funds to work, earning yourself a passive income for supporting the network. The act of staking in Venga’s wallet couldn’t be simpler. Simply select a compatible token, click on “stake”, then select a staking pool based on its reputation and the advertised APY. Then, select the desired amount of tokens you’d like to lock up and click “confirm”. That’s all you need to do. When you stake tokens in a staking pool, what you’re doing is pooling your tokens together with those of its other participants. It works kind of like a savings group, only it’s crypto native. By joining forces in this way, pool members increase their chances of being able to generate new blocks and earn rewards, which are then shared between every member of the pool. With Venga’s Earn feature, you can lock up your Ethereum (ETH) tokens for a minimum of 120-days, and you’ll earn an APY of 3.2% on the amount of tokens you have staked. While there’s only one option for now, Venga plans to roll out additional staking options where users can increase their APY in return for a longer time commitment. Soon, Venga will add lots of other tokens for stakers, with Polygon’s MATIC, SOL, AVAX, LINK and AAVE just some of the cryptocurrencies set to launch in the coming weeks. How Are Rewards Calculated? Venga staking rewards will depend on a number of factors, including the amount of crypto you stake. By locking up more tokens, you increase your contribution to the network, so you can earn more handsome rewards. Also, locking-up your tokens for longer shows you’re more committed, and in return you qualify for a higher APY. Other factors that impact your Venga earnings include the total amount of tokens staked on the entire network. If there are millions of tokens staked by hundreds of thousands of people around the world, the rewards are going to be shared across all of these participants. As such, the available rewards may decrease, although this also depends upon the level of network activity. In addition, it’s important to note that networks sometimes adjust their staking rewards due to token inflation, or to increase incentives if not enough people are securing it. It’s often the case that newer blockchains offer higher APY, to encourage users to stake there. However, such networks come with higher risks. Finally, you’ll need to consider the validator’s performance. When you enter a staking pool on Venga, you’re backing a specific validator, whose job it is to validate transactions. So look for a validator with high accuracy and uptime to ensure you are maximizing the value of your stake. Is Staking Risky? Staking can be risky. The main thing to remember is that your rewards are paid out in the same cryptocurrency that you stake. So if the value of that token drops significantly, the value of your rewards in fiat terms will be a lot less than what you might have anticipated. The lock-up periods are crucial too. If the value of the token drops, you won’t be able to cash out until the minimum number of days expires, so you’ll just have to accept whatever losses are incurred (or hope the price rebounds). Perhaps the biggest risk is slashing. Some PoS blockchains implement a slashing mechanism to punish validators who act dishonestly or make mistakes. If the validator you choose is slashed, then some or all of the tokens you have staked could be taken away as a punishment for those indiscretions. In this way, staking can be considered as a “carrot and stick” approach to incentivizing the security of the blockchain. The rewards are the carrot, and slashing is the stick. Should I Stake Crypto? If you’re looking for a way to earn money with crypto, staking with Venga is about as easy as it gets. So long as you can afford to buy some crypto and click a few buttons, you can get started in staking and supporting your favorite networks. While there are other opportunities in the confusing world of DeFi, activities such as yield farming and liquidity provisioning can be extremely complex, requiring a significant degree of technical know-how and the ability to navigate dApps and perform cross-chain swaps and all the rest. In contrast, Venga makes staking so simple that even your grandma could do it with no fuss. Crypto staking can be a very profitable endeavor, and most crypto enthusiasts agree that it’s far better to stake than just sit and “hodl” your tokens and do nothing with them. Blockchain networks offer far greater returns than traditional savings accounts, and while cryptocurrencies can be volatile, sometimes this works in your favor if the price shoots up – suddenly, the value of your rewards might increase immensely. So long as you’re not averse to a little risk, staking via Venga can be a fantastic way to generate a passive income. What’s more, it’s reassuring to know that you’re playing a crucial role in supporting the network, helping to fuel global adoption of blockchain and ensure that crypto will ultimately flourish. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
