STAKING DIGITAL ASSET IN THE DIGITAL CURRENCY MARKET

Hello to everyone in this great community today and on this great platform at large. I greet you all in good spirit and I want to believe that we all are doing just great today and if so we give God the praise for the sustenance of life and good health.

I welcome you all to yet another beautiful week that we all have emerged today and I want to to believe that we all had a great weekend and I hope we had fun and time with family and friends too. Now It is indeed a beautiful week before us all as such we loom forward to a wonderful week ahead.

Today I am here to talk about an important topic which have been in my mind for so long to talk about and this discussion is directed to portfolio staking. A lot of newbies have been asking me for some time now about what the term staking entails and the benefits of staking so I decided to put it down as an article for other newbies to benefit from today's teaching too.

So the teaching for today is tagged STAKING DIGITAL ASSET IN THE DIGITAL CURRENCY MARKET. This is quite an interesting topic to discuss with us all today and as such I beckon on you all to stay put as this is beneficial to those that are just coming in contact with the word STAKING. So take seat, relax and enjoy the teaching as I begin. I wish you all a happy reading!

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Before we begin the discussion for today, it is expedient that we understand certain term regarding the topic for today so as to get insight about what we are going to be discussing in few minutes from now and this term is regarded ad STAKING.

WHAT IS STAKING

The term STAKING can be seen as a process whereby an asset is been kept at a particular entity for the purpose of achieving more assets when things go in line with the predictor's favor. We have seen how people stake assets just to get profit when things work out as planned.

We can take an example using the cryptocurrency futures trading. The futures trading demands traders to stake the amount of asset they wish to trade prior to the execution of the trade and when that is done the trader executes the trade.

So when the trade movement is to the direction at which the trader predicted, then the staking was worth it as the trader will be in profit when it goes in line with his prediction but when the market movement fails to go towards the predicted direction of the trader then that trader start to lose his/her assets in the market.

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So the word staking based on the conventional market and understanding is the process by which an asset is set aside or payed to an entity as the case may be of which when the activity is executed and things move to how you predicted, then you will be in profit but when it doesn't, then you may likely lose the entire funds.

STAKING IN CRYPTOCURRENCY

Now staking in cryptocurrency deals with the process by which a trader, individual or investor possess a particular cryptocurrency asset in his wallet purposely to encourage and give his or her unrelenting support to a specific blockchain network.

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Staking in essence deals with the ability of holding certain cryptocurrency assets in your digital wallet for a long period of time and also the staking is concerned with the number of assets staked hence this scenario helps to support the network of a blockchain and also with the staking mechanism the price of the said assets that has been staked tend to increase as we get to notice high level of demand with less supply of the said assets.

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So staking also limits the circulation of various cryptocurrency assets and when there is less circulation, the availability of the digital currency assets becomes minimal hence the price of the said assets will continue to increase in price value as though there is less supply since individuals and investors are staking.

CONCLUSION

It is important to understand what staking entails for with the knowledge regarding cryptocurrency staking there would be a strong rise in cryptocurrency price and when individuals and investors sell less and buy more and also stake more of their digital currencies, we will get to see a new all time high regarding many cryptocurrency assets hence we will get to see a short supply of the various cryptocurrency assets supply and a strong demand for those assets in the market as they become less available in the cryptocurrency market.

Thank you all and I hope we all are very convinced with what staking entails. It was a pleasure having this meeting with you all. I look forward to discussing more with you when next I'm here but for now I say goodbye to you all and have a great week ahead.