Economy
How to Stake Cryptocurrencies
Staking cryptos is one of the best methods of generating passive income. What is more impressive is that it is pretty easy: you simply lock your coins and wait for rewards. Staking involves holding your coins or tokens in a wallet or exchange over a specific period.
If you can hold your coins for a long time, the rewards will be even higher. However, crypto staking only works with proof of stake (POS) coins, such as (HI).
For a beginner, we must say that the process might look a little complex. This is why we have developed this guide to help simplify the process.
Staking Cryptocurrency: What Does It Mean?
This is the process of locking your cryptocurrencies to help with transaction validation in a selected blockchain network. In return, you get rewarded with a part of the transaction fee paid by users and tokens of the native network.
Crypto staking is done through a node, which is a computer connected to the blockchain network to validate transactions. This implies that staking helps to keep the blockchain network running flawlessly and avoid the risk of errors.
Pros and Cons of Staking Cryptos
Once your coins have been staked correctly, they are used to “mine” the next block to earn some rewards for incentivizing the system. This method is referred to as proof of stake (POS) protocol. The more coins you commit, the higher the chances of getting selected to mine the next block and getting rewarded. Although the reward mainly comes in the form of the same crypto coins, it is also possible to get it in a different type of reward.
Pros
Depending on the crypto of choice, you can earn 5-20% of the staked value per year. We must say that this is not a get-rich-quick method because you need to wait for some time to reap maximum rewards. If you get it right, this is an excellent way to maximize passive returns. Here is a summary of the pros:
- You are able to earn interest on crypto holdings.
- Easy because you do not need specialized equipment.
- Staking means you are helping to secure the crypto network and its efficiency.
- Less energy is required for crypto staking compared to mining.
Cons
When it comes to investing in cryptos, it is advisable to only consider it after understanding how blockchain systems work. For example, the risk of bugs getting into your wallet is always looming. It is because of this that you need to carefully weigh between crypto wallet vs exchange and decide where you will store the coins
Furthermore, it is important to appreciate that price fluctuations can easily result in unexpected losses. For people who store their coins in the exchanges, there is also a risk of hacking or exit scams. Therefore, you must start by comprehensively researching the exchange of choice.
Here is a summary of the risks:
- High volatility raises the danger of losing your coins.
- You are unable to do anything with your crypto coins during the staking period.
- The unstaking period usually takes longer than anticipated.
How to Stake Your Crypto Coins
Many crypto platforms have a fixed payment period. For example, hi pays participants an amount equal to 11% of staked coins every Friday. Other crypto networks have their models of rewarding stakers.
hi Dollar has grown to become one of the leading cryptos that you can stake to generate passive income daily. It is a non-profit banking system and the first cross-platform financial services based on social media chat tools. This means that you do not need to install anything to get started. Simply visit WhatsApp or Telegram to register for an account and start to stake cryptocurrency. Alternatively, you can register on its web app to buy hi Dollars directly.
Here is a summary of the main steps to follow to start staking your hi Dollars.
- Buy crypto that supports staking.
- Transfer the crypto to your hi wallet.
- Confirm receipt in your wallet.
- Enable staking from the wallet.
- Wait to collect the reward every Friday.
By Adedapo Adesanya
Okitipupa Plc was the sole price gainer at the NASD Over-the-Counter (OTC) Securities Exchange on Friday, August 7, lifting the trading platform by 0.44 per cent at the close of transactions.
The share price of the palm oil producer appreciated during the trading session by N25.00 or 9.0 per cent to N277.00 per unit compared with the previous day’s N252.00 per unit.
As a result, the market capitalisation gained N12.29 billion to close at N2,807 trillion, in contrast to the previous session’s N2.795 trillion, while the NASD Security Index (NSI) added 93.63 points to finish at 4,678.08 points compared with Thursday’s 4,657.59 points.
The bourse recorded a price loser yesterday, and this was Mass Telecoms Innovation Plc, which crashed by 3 Kobo or 9.4 per cent to settle at 32 Kobo per share versus the previous day’s 35 Kobo per share.
The volume of securities traded by investors plunged by 81.5 per cent to 535,7560 units from 2.9 million units, the value of securities slumped by 93.9 per cent to N6.0 million from N99.2 million, and the number of deals decreased by 41.9 per cent to 36 deals from 62 deals.
Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units transacted for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 77.0 million units exchanged for N5.5 billion.
GNI Plc also ended the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, trailed by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
By Dipo Olowookere
A 0.15 per cent growth was achieved by the Nigerian Exchange (NGX) Limited, driven by continued buying interest in banking stocks such as First Holdco and others.
The banking index was up by 1.53 per cent during the session, offsetting the losses recorded by the others. The industrial goods segment fell by 0.37 per cent, the insurance counter shrank by 0.21 per cent, and the energy sector contracted by 0.04 per cent, while the consumer goods space closed flat.
At the close of business, the All-Share Index (ASI) moved up by 364.26 points to 245,573.60 points from 245,209.34 points, and the market capitalisation increased by N235 billion to N158.513 trillion from N158.278 trillion.
Despite the gains printed by Customs Street during the trading day, investor sentiment was weak, as there were 22 price gainers and 24 price losers, indicating a negative market breadth index.
UPDC surged by 9.23 per cent to N3.55, CWG soared by 6.56 per cent to N19.50, AXA Mansard appreciated by 4.80 per cent to N13.10, Neimeth advanced by 4.24 per cent to N8.60, and Cutix improved by 4.00 per cent to N2.60.
Conversely, Red Star Express lost 10.00 per cent to trade at N18.00, CAP declined by 9.98 per cent to N115.45, John Holt shrank by 9.82 per cent to N10.10, ABC Transport depreciated by 9.57 per cent to N5.20, and Legend Internet crashed by 8.70 per cent to N4.20.
A total of 1.5 billion equities worth N26.7 billion exchanged hands in 42,580 deals on Friday versus the 531.8 million equities valued at N20.5 billion traded in 44,826 deals on Thursday, representing a spike in the trading volume, value, and number of deals by 182.06 per cent, 30.24 per cent, and 5.01 per cent, respectively.
The busiest stock during the session was Fortis Global Insurance, with a turnover of 824.5 million units valued at N2.1 billion, FCMB traded 217.9 million units worth N2.8 billion, Access Holdings exchanged 176.2 million units for N4.7 billion, Chams sold 32.5 million units worth N132.1 million, and First Holdco transacted 25.0 million units valued at N3.7 billion.
By Adedapo Adesanya
The Naira further closed south against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, August 7, by 81 Kobo or 0.06 per cent to N1,365.69/$1 from N1,364.88/$1.
It was a similar situation for the Nigerian Naira in the official market during the session as against the Pound Sterling; it lost N1.08 to quote at N1,839.17 versus the previous day’s N1,838.09/£1, and against the Euro, it slipped by N1.23 to close at N1,575.73/€1, in contrast to the preceding session’s N1,574.80/€1.
Further, at the GTBank forex counter, the Nigerian currency weakened against the Dollar yesterday by N2 to settle at N1,371/$1 compared with Thursday’s N1,369/$1, and at the black market, it traded flat at N1,400/$1.
The country’s legal tender came under FX demand pressure on Friday, with turnover rising by 304.3 per cent to $399.5 million from $98.8 million the previous day, with the number of deals slightly up to 107 from 106.
Next week, traders expect the Naira to hold steady, buoyed by dollar sales by the Central Bank of Nigeria (CBN), whose presence in the market could help ease demand pressure.
As for the cryptocurrency market, Bitcoin (BTC) neared the $65,000-mark after it gained 0.8 per cent to trade at $64,968.05, as investors took advantage of recent drops to shore up their holdings.
Previously, the decision by the US Senate to delay a vote on the Crypto Clarity Act until at least September weakened the outlook. The bill, which would set out which US regulator oversees which digital assets, needs 60 votes to pass and it is unclear whether it currently has 50.
Solana (SOL) grew by 2.5 per cent to $74.81, Dogecoin (DOGE) rose by 1.3 per cent to $0.0702, Binance Coin (BNB) jumped by 1.1 per cent to $593.80, Ethereum (ETH) expanded by 0.5 per cent to $1,916.08, Ripple (XRP) also soared by 0.5 per cent to $1.03, and TRON (TRX) appreciated by 0.2 per cent to $0.3275.
However, Cardano (ADA) depreciated by 1.0 per cent to $0.1997, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
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