In a simple answer, YES! Staking is profitable.
By description, staking is just the process of buying and holding crypto in your wallet and earn profit from it. That process is commonly known as hodling. Sometime after this investment method was discovered, staking became a pivotal alternative to crypto mining and trading.
Any investor aiming to earn profits from crypto mining but without encountering risks or high input cost immediately adopted the staking option. Staking has been regarded by many experts as an easy way to make money with virtual currencies and rightfully so.
It involved buying and holding a specific coin for a particular period. You can earn some money through the way of interest. Notably, staking works on the mechanism of Proof of Stake. In that context, new coin miners are chosen based on their existing stake of coins. The more the number of coins that you have, the more new ones you are allowed or can mine.
Nonetheless, most crypto enthusiasts also allege that the profits obtained from staking are significantly low.
Are there profits?
Staking is almost as profitable as the mining or trading of cryptos, and it comes without risk. All you will need to do is to stake (buy and hold) some coins to get added to the mining pool.
For the case of profits, the real gains you can get from staking are determined by how much you vest and for how long. The more you stake, the more you expect to make in profit with this process. Additionally, there are many other things to consider to increase your staking profits.
Whenever you are staking a coin, it is advisable to keep a close look at the coin price and value. There is no need to stake a coin whose inflation rate or volatility is considerably high.
Even if you can make high staking rewards from these types of coins, the value may fall sharply to leave you with small to almost no profit. Hence, it is essential to invest in a currency that has low volatility.
Here is what to look out for when staking?
You need to check out the maximum supply of the coin: the token/coin that you go for should have a fixed supply. That guarantees that the circulation of coins in the market is limited. That factor maintains a healthy demand for the coin, which gives a constant boost to the price.
Real-usage: the demand for crypto majorly depends on what a particular coin is used for. If the coin has an actual application or application, it is bound to have a healthy demand which supports the value of the coin. For instance, Titan coin operates as a digital payment solution that is used for receiving and sending global payments.
The team has also developed several apps using titan coins for payments to control the inflation rate.
Hence, staking is profitable. However, the amount of profit that you can make from the process depends on how well and wisely you can stake. Many PoS cryptos are available for staking currently. They include Titan Coin, DASH, Tezos, EOS.io, and many more.