Contest!!! Benefits in staking of Cryptocurrency

Hello there amazing journalist in the hot news community how are you all doing today I hope all is well, with great joy today I will be participating in a contest organised by @cryptoloover with the theme "Benefits the Staking of Cryptocurrency"

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INTRODUCTION

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As we all know that the first ever cryptocurrency which was bitcoin was introduced to us in 2008 by a group of individuals using the name Satoshi Nakamoto

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And eversince then till now a lot of emerging cryptocurrencies has been made and today there are a total of more than a thousand cryptocurrencies on the blockchain and steem is also part of it.

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DO YOU FEEL COMFORTABLE WHEN YOU INVEST IN CRYPTOCURRENCY?

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Indeed cryptocurrency has taken over the financial system in most developed countries today, and a lot of people have come to like using the blockchain to carry out most of their transactions

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Even though in Nigeria the out going government administration had banned 🚫 the used of cryptocurrency here in Nigeria and instead there introduced what we call e-naira

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Due to the little knowledge most people have about cryptocurrencies it has given the opportunity for fraudsters (yahoo boys) to scam people off their assets which has greatly contributed in making people to think that cryptocurrencies itself is a scam

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So now back to the question, I really do feel comfortable when investing in cryptocurrencies because I do not go around investing my money in some random Crypto trading platforms rather when investing I prefer to use a well known and high rated Crypto trading platforms like "Binance"

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And with that there is no need of me being afraid of losing my funds to fraudulent act by scammers.

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Generally I'd always feel comfortable while investing in cryptocurrencies because I only invest what I can afford to loose which is a quarter of my earnings because I know for sure that it's a volatile market system which the price can rise or fall at any given time

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WHAT IS THE DIFFERENT BETWEEN INVESTMENT AND STAKING IN CRYPTOCURRENCY?

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Now this is the most important question which has been confusing a lot of people, what is the difference between Crypto investment and staking?

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Cryptocurrencies as we all know has only three well known ways which we can use to earn passive income from and some of this ways are;

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• Investment
• trading
• Staking
• Mining ⛏️

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INVESTMENT

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This method is the most common ways which we all know about cryptocurrencies, it is the process in which an investor invest his or her money in cryptocurrency by buying it when it's price is low and selling it when the price is high.

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TRADING

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This is one of the hardest and most difficult way of earning money with cryptocurrencies, here an investor can choose to engage in day-trading Instead of waiting for the price to rise to a certain limits, here an investor can choose to trade margins or future trades depending on the traders expertise in stocks market

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STAKING

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This is the process of holding your Crypto assets for a specific period of time for your Crypto holdings, and note that when you stake your Crypto assets you will not be able to make use of the assets untill the staking period is over.

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CRYPTO MINING

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This is the process of making use of various machines like the ASIC miners to electronically generate and mint new cryptocurrencies into your desire Crypto wallet, Crypto mining is the greatest way of making huge profits with cryptocurrencies but it requires the use of high efficient machines

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THE DIFFERENCE BETWEEN CRYPTO INVESTMENT AND STAKING

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The main difference between cryptocurrency investment and staking is the fact that Crypto investment is the process of investing in cryptocurrencies at a low price and holding it until the price climbs up again then you sell it and make profit

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While staking is just like a steemian who has delegated his or her steem power to a community in ther to get daily benefits, staking is the process of locking up your Crypto assets for a certain of period of time for the purpose of earning daily income from it

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DO YOU LIKE TO STAKE STEEM INSIDE AND OUTSIDE THE STEEMIT PLATFORM?

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I would really like to stake steem token but the only that will discourage me is the fact that it has a low APR interest rate as you can see in the picture above it only has a 1.35% interest rate which is very low as compared to some of the other cryptocurrencies out there.

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TELL US ABOUT THREE BENEFITS OF STAKING IN CRYPTOCURRENCY?

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There are a lot of potential benefits when it comes to staking your cryptocurrencies and some of this benefits are;

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• It helps in putting our digital assets to work and earning passive income from it
• Staking doesn't require you to be a professional trader
• Staking is good for beginners since it has a low level percent of lose

Overall the benefits of staking varies depending on the price movements of your staked assets

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CONCLUSION

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In other to conclude me entry I would really like you guys to know that be it investing or staking along the isn't risk free, therefore invest with precaution and only invest what you can afford to loose I case of a great fall in market price

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^{I will like to invite @edidiongeffiong, @prime33, @stephenkendal, @fantvwiki & @ubongudofot}

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written by @radleking

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