How DeFi Can Help You Earn Passive Income in 2022 Story
Decentralized finance (DeFi) has been one of the hottest crypto market themes of 2021, and it is showing no signs of cooling off.
DeFi is a blockchain-based system for financial products and services that incorporates automated products known as smart contracts instead of relying on a third party like a bank, thereby disrupting financial services and making it more accessible to the unbanked and underbanked.
Staking is a way to earmark, or quite literally lock up, crypto holdings for a period of time and earn rewards like interest for doing so.
Staking is contributing to the process of creating new blocks on the blockchain, and the amount you earn is commensurate with the amount you stake.
By staking, you are contributing to a project by helping to verify transactions on the blockchain via the proof-of-stake (PoS) consensus algorithm, which Ethereum is transitioning to. Staking generates passive income considering all you need to do is set it and forget it.
Keep in mind, there is always a possibility that a coin's value will increase, which will bolster your overall returns, but there is also a risk that the cryptocurrency could drop in value, which would cut into staking rewards. We'll focus on some of the leading coins that are headed into the new year with the wind in their sails.
SWIPE UP TO LEARN MORE!
Discover more from wealthofgeeks.com