Two common problems associated with crypto staking

[Kingstone]

Staking is one of the best ways to earn passive income in the crypto space. The user earns a daily commission for doing nothing. Staking is a common offered by the exchange platforms such as Binance, Coinbase, and other centralized apps. Stalking is a process where the user locks a certain amount of his crypto assets for some particular duration and the control over the asset is taken away from the user and receives interest and capital upon completion. This means that the coins Cannot be used to trade, withdraw, or transfer until it has reached their maturity date.

While awaiting the maturity or completion date, these are the two common problems associated with crypto staking:

1. Volatility of the coins: As we all know, cryptocurrency is volatile. The funds staked may actually fall and this will affect the amount to be received as the interest and the capital. However, to curb this menace, crypto exchanges offer stable coins as part of coins to be staked. Tether (USDT) and USD Coin (USDC) are among the few stable coins that are offered.

2. Hacking: It is not glib to say that wallet exchanges can be hacked. Coinbase has was hacked a few months ago. Hence, during the duration of the staking process, Coinbase will not account for any coins stolen or hacked. Binance has not been hacked and it is considered the safest. Still, it is susceptible to hacking.