One of the great things about staking is that it takes only one right move to break free of financial struggles and live your dream life
The basic principle to get rich from staking is by investing on a profitable coin, then lock in your crypto for a long term, allow it to grow and reinvest again.This basic knowledge has the potential to make you extremely rich.
Holding on to a cryptocurrency for a long term can earn you lots of money, but great riches arise from years of staking in a profitable coin some refer this approach as compounding like investment
The power of “Compounding like investment”
Probably you must have heard this story of chequerboard and the rice grain, in return for 64 days of service, an agricultural labourer makes a deal with his master for a single grain of rice on day one and for his pay to double each day, the master agreed.
On the last day, the master owed the labourer about 200 million tons of rice. To some people that is pure wisdom, far from truth, that is exponential maths – compounding. Anyone can make use of it, even the dummies.
Although doubling your money each day sounds Impossible, right ? Yes it’s quite not possible because money takes time to grow compare to rice grains pay
Here is how compounding works with staking: when you stake a coin you feel is going to do well in long run, your staking reward will be awarded to you after staking tenure is over, here is where compounding comes in play – you reinvest plus your interest and repeat the process over and over again till your little seed grows to a giant tree.
One Good investment is all you need in your portfolio
Imagine that it’s December 2012 when Bitcoin has gained ground and was worth $3.A cup of coffee is sold that year at the same price. But what if you bought Bitcoin that year rather than buying a cup of coffee, you will be sitting on $ 40k. Imagine a bit further, had it been you bought $100 that same year you will be worth 1.3 million dollars
The real perk of compound staking is that it can withstand a lot of price fluctuation. Staking with a good coin can face a lot of market challenges such as price devaluation yet still brings you great profit.
For instance, you invested on five cryptocurrencies in 2012 with 5000 dollars. One of which was Bitcoin. Let’s imagine things turn out poorly, four out of five did not yield well, remaining the fifth – Bitcoin. You will still be worth 13 million dollars! Indeed, one good investment is all one need.
Compound staking is the key to long term investment
Behaviour financial study has proven that investors don’t always act rationally, even the experience ones tends to make every human mistakes and repeat this same action over and over again
Many investors would not have hold on to Bitcoin when it broke a new overall high in 2015. That year, 1 BTC was worth 200 dollars. Seeing that they earn a massive gain, most investors would have sold out, hence missing out on a great gain in 2020. It can be hard to even ignore the 2014 market devaluation that lasted for several months, this is why compound staking is so useful.
Compound staking curbs the temptation of selling out during market correction as a result of acting on emotion or fear.
Now suppose you start earning 10% interest annually from your investment, which will leave you with more coin (since staking rewards are paid in form of staked asset)this gives you more money and profit than just holding.
Although staking interest of about 5-10 % annually might not be totally attractive, but these small digits will pay a vital role in building your wealth in a long run.
Charlie Shrem has seen its huge amount of its Bitcoin collapse a few times over the year. But its profit margin climbed over the years because he chose to buy the bitcoin assets when no one believes in, thinking it was a failed project.
He bought bitcoin when its experience is first market correction. Bitcoin was worth hundreds of dollars.
The long term investment is one annoying journey that can bring a lot of emotion, especially in a high volatile market such as crypto market.
An investor can see his asset grow for months and watch the asset value decline rapidly in a couple of days. Many investors sell at this stage out of fear, forgetting the general accepted accounting principles. Not only do they sell low, but they are going to be absent during the rise after the dip.
People who succeed in the crypto market are those who accept periodic losses, unexpected setbacks and unforeseen occurrences. Calamitous drops do not scare them out of the game
Time generate money
Basically, what most investors do not have in their portfolio is TIME.
Almost every investors do not what to lose any fraction of their investment, so the bear market is their greatest fear. It consumes them and keep them awake in the night.
Little do they know, or maybe the fear has co consume they deeply, so they forget that it takes time for money to grow.
When you multiply your money by large proportion in long term investment. This is done without lifting a finger or worry of studying the chart again. You get rich by allowing time to generate money for you
How to choose crypto assets for compound staking
In order to get rich from staking, it requires you to make a bold decision, invest in variety of unpopular but promising crypto assets. However, you will still have to buy the popular and mature ones to balance your portfolio.
The promising asset helps to build your wealth while the popular one ensure if things go pretty bad you will land softly
The trick of compound staking
Wealth build via compound staking might not be that quick. But compound staking shows the power of sticking with a crypto asset through thin and thick. In a long run, you tend to be wealthier than some investors who aren’t patient
However, all investment comes with risk, and it’s often said that the greater the risk, the greater the reward but taking unnecessary risks can be detrimental too
To mitigate the risk of compound staking, here are some tricks that might be useful
- Invest in crypto asset that you’ve thoroughly researched
- Invest in variety of crypto assets – Don’t put all your eggs in one basket
- Reinvest your interest
- Stake with a reputable exchange or mobile wallet
Three properties a crypto asset must have before staking
A good crypto assets must have these key elements before you stake; coin potential, decent APY % and good developers
A crypto asset with these key elements will help you get rich slowly – which is the most secure way of building wealth
Look for crypto assets with great team of developers that put the interest of the investors at heart.
Crypto assets that are worth staking
To make tons of money with compound staking often leads to headache when you’re trying to guess which crypto will be profitable in long run, if the coin you would like to stake offers high APY % and which medium is the best suitable to stake the crypto.
But in those situation, here are crypto assets that are advisable to invest in
- Ethereum 2.0
- Binance coin
I strongly recommend you to make your research as well.
Don't be deceived, cryptocurrency trading is not where the real, significant money is made. Growing money needs time, learn to be patient To get rich from staking is quite easy. It takes a few numbers of good crypto assets to change your life.
Most frequently asked questions
What should I include more on my portfolio, the promising asset or the mature assets ?
The answer depends on how long you intend on staking, your objective and if you can handle your emotions knowing you might lose your principal after buying a risky investment. If you don’t think so, stick with mature assets, they are less volatile compare with the upcoming ones. These assets will slowly but surely build your wealth.
Is it safe to use an exchange to stake?
It is not quite safe, since you will be storing your coin in an online wallet for a long time, but signing up with a well reputable exchange can minimize the risks