Cryptocurrency staking: benefits and drawbacks, Tosdis solution.
Staking is an alternative mining method and is one of the best passive income solutions in the crypto market. It provides a stable income and is also an extremely simple tool. In short, you need to buy a coin, block it in your wallet, and receive profit as a percentage. The profitability can vary depending on the platform.
Cryptocurrency staking has some major benefits:
🔹 It’s cheap. If PoW you need to buy expensive equipment and pay for electricity, PoS requires minimal computing power. A regular old laptop or mobile wallet on your smartphone is enough for staking.
🔹 It’s safe. PoS is much more resilient to 51% attack, as you would need to buy 51% of the coins to take over the network, but such an attack is economically disadvantageous.
🔹 Staking implies asset growth. Indeed, it would be best if you staked more coins to make big profits. In addition to profit from staking, the value of the coin itself is likely to grow as well.
🔹 It’s simple. There is no need to have specific knowledge. You only need to buy coins on the exchange and delegate (put) them into staking in your wallet. Then the system calculates the reward on its own.
Staking Drawbacks
🔹 However, staking also has some disadvantages. Of course, the concept of receiving rewards only for storing cryptocurrency looks quite attractive, but, unfortunately, one should not expect significant profits. In most cases, staking gives lower rewards than regular block rewards issued by the network.
🔹 The risk of centralization is very high when the bulk of assets are in large players’ hands. Also, because users strive to keep coins in their accounts as long as possible to maximize possible profits, there is a high risk of a decrease in the cryptocurrency turnover in general.
🔹 The staking mechanism also involves the withdrawal of an asset from circulation, blocking funds in the wallet. This means that the user cannot use coins until the end of the staking period. That is, his funds are illiquid.
🎯 Tosdis Solution
With EasyStake in Tosdis, users can have real freedom to manage their DeFi assets.
✔️ Liquid Staking
Tosdis and Liquid Staking are the next step in Proof-of-Stake technology. Thanks to Liquid Staking, Tosdis provides liquidity of crypto assets. Users receive at their disposal derivatives in a 1:1 ratio to the staked assets, and they can use tokens in trading or exchanging operations.
✔️ Staking as a Service
Flexible, cross-chain staking mechanism for any ERC-20 token. The unique mechanism of Tosdis means we are able to offer Staking-as-a-Service to dozens of platforms — Polkadot, Binance, Chainlink, Tron, Ethereum. EOS, etc. — via our smart contract-based DeFi staking.
✔️ Yield farming
It is a simple, secure, and reliable way to offer holders a liquidity mining service. Tosdis allows users to earn yields on ERC-20 tokens and other digital assets to help crypto newcomers grow their investments with a simple, secure, low-friction service. Tosdis EasyStake’s features include one-click staking for rewards and automated claiming and re-staking.
📢 Find out more about the Tosdis advantages on our website: https://tosdis.finance
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