The New Year is fast approaching, and you will probably have some financial goals. If you are a crypto enthusiast, you can consider staking this year. Essentially, staking enables investors to earn rewards by locking native tokens to secure a chain. Surprisingly, it has emerged as a winner, leaving behind mining to become the main way to secure blockchain networks. Moreover, it generates a relatively safer and more predictable yield. Ethereum is one of the best crypto options for staking because it is likely to maintain its value despite the market volatility. But there are several more reasons to try your luck with Ethereum staking. Let us explain why you must absolutely consider it this New Year.
Passive investment
Nothing gets better than passive investment for savvy investors because it brings money without any work. Ethereum scores full marks as a passive money-making idea that actually works. Staking involves putting your tokens for blockchain validation, which is much like using a certificate of deposit or a money market account in traditional personal finance. Once you agree to the terms and conditions, you need not do anything else to manage your ETH. The best part is that you earn rewards passively with a reasonably good annual APR. A minimum requirement of 32 ETH is essential for Ethereum, and it can get you around 1.3 ETH per year with no additional work. So it is surely a smart way to make your money grow passively, without any skill or effort!
Relatively low-risk
Although cryptocurrencies are a lucrative investment option, you cannot undermine the risk of market volatility. But Ether is a relatively stable staking option compared to other cryptocurrencies. The popularity, security, and global use of the coin make it a good one for savvy investors. Even if the prices dip at a point, they recover sooner than later, so you need not worry about losing your money. You can look for a reliable staking platform like Kiln to start your journey this New Year. Ideally, you must choose a safe and user-friendly platform to make things stress-free, even as a beginner.
A sense of community
Another reason to try your luck with Ethereum staking this New Year is that it brings a sense of community. You can do your bit to support the network by becoming a buy-and-hold investor if you are passionate about Ethereum and consider it valuable. Staking enables you to validate the network, which boosts its health and security. The best part is that you end up gaining a significant payout in the process. You do not have to be a tech expert to stake a bet because finding the right platform is enough to make the most of your investment. Moreover, the staking model is far more energy-efficient than its predecessors.
Trying your luck with Ethereum staking is an excellent idea if you want to go the extra mile with crypto investments this year. But remember to choose a reputable platform to have a safe and lucrative experience even as a beginner.