Why Staking Crypto Such As TRX, KAVA And More Is Gathering Steam

I show You how To Make Huge Profits In A Short Time With Cryptos!

In letter :

  • The mid-March coronavirus crash led many crypto traders to be cautious.
  • The dominance of stablecoins is proof that they are waiting for favorable crypto conditions to return to trading.
  • Crypto staking on different exchanges has provided an alternative to trading and / or storing value in stablecoins.

The crash of Bitcoin (BTC) and the crypto market in mid-March was an event few traders believed would happen. The majority of Bitcoin enthusiasts believed that the hype surrounding the Bitcoin halving event would provide much needed immunity for the crypto markets to survive an upheaval in the event of a possible stock market collapse. However, the tense days of March proved that Bitcoin is strongly correlated to stock markets in times of turbulence.

$ 8 billion stuck in Stablecoins

As with all periods of unexpected volatility, traders and investors quickly jumped on stablecoins to protect the value of their holdings in the crypto markets. As a result, Tether (USDT) has continuously risen on Coinmarketcap and is currently ranked 4th after BTC, Ethereum (ETH) and XRP. The market cap of stablecoin currently stands at $ 6.4 billion, which is 80% of the total value stored in stable coins. Tether’s dominance slowly but surely increased due to the uncertainty caused by the effects of COVID19 on global economies.

Staking of TRX, KAVA and other cryptos offers a profitable alternative

With the world firmly in the midst of a global recession, favorable trading conditions to stay LONG in the crypto markets will likely take some time to arise. As of this writing, flattening of the infection curve occurs but a return to normal is expected to take months and continue until 2021 with some estimates postpone it until 2022.

Therefore, many savvy crypto investors have found that staking is an easier way to store their crypto holdings while gradually increasing their bags.

Exchanges such as Binance, Bitfinex, KuCoin and Poloniex, have started offering staking services for coins and tokens already listed on their platforms.

Use Binance’s staking services As an example, we observe the following estimated annualized returns in the staked token / coin.

  • Tron (TRX): 7 – 8% pa
  • ATOM: 6 – 9% pa
  • Tezos (XTZ): 6 – 9% discount
  • Algorand (SOMETHING): 8 – 10% pa
  • UN: 8 – 10% per year
  • Fetch (FET): 8 – 12% pa
  • QTUM: 6 – 8% pa
  • TROIE: 15 – 16% per year

The above list is only a brief to give the reader a better understanding of the potential investment potential of staking.

Staking might be a better alternative to trade uncertainty

With the narrative of Bitcoin’s earnings halving nearly destroyed by the March 2020 coronavirus crash, trading in cryptocurrencies as they vary and move randomly back and forth could be just that. One-way traders lose trading capital due to dreaded stop losses and closeouts.

Staking, on the other hand, might be a better alternative to trading. User funds generate profit in a more attractive way than holding value through stablecoins.

Vitalik Buterin thinks staking on phones is promising

Additionally, in a recent tweet, Ethereum co-founder Vitalik Buterin dismissed the idea of ​​mining cryptocurrencies on smartphones while identifying staking as a promising option. His tweet can be found below.

In summary

Trading Bitcoin and spare parts during times of global economic uncertainty could be a way to lose trading capital. Alternatively, and with staking, investors can store the value of their trading capital in coins or tokens which will generate a handsome amount of annualized returns.

(Featured image courtesy of Michael williams on Unsplash.)

Warning: This article is not intended to provide financial advice. Any additional opinions herein are solely that of the author and do not represent the opinion of Ethereum World News or any of its other authors. Please do your own research before investing in any of the many cryptocurrencies available. Thank you.





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