Cryptocurrency trading has several popular strategies that allow for generating income for crypto holders. That might be challenging strategies that require opening and closing positions many times a day, thus, constantly tracking the market and reacting to every single price fluctuation. It can be less stressful strategies that give enough time for thinking and analysing the market. The most difficult trading strategy is daily trading, and the less stressful is position trading. Position trading is buying assets for a long time. It may be several weeks or months. It gives enough time for a trader to analyse the situation and make the right decision.
There is another way to make money from buying crypto assets and holding them – staking crypto. Let’s discuss it today.
Crypto Staking Explained
Staking is locking crypto assets on a platform for some period of time and receiving rewards in the form of additional coins in return. Staking has something in common with position trading – you buy coins and hold them without the need to monitor the market changes daily. However, staking brings much more benefits because you not only invest long-term, but also receive additional coins in the result.
Staking has its period, and once it expires, a user gets back the coins one invested and additional rewards for keeping crypto in staking.
To stake crypto, you should:
- register on a crypto platform that supports staking;
- deposit funds to your account;
- lock your coins in staking.
Once the staking period expires, you receive the invested coins back, plus rewards.
What is Hodl?
Once in some crypto chart, a user misspelt the word “hold” and typed “hodl”. The term got the meaning of holding crypto assets regardless of their price changes. The hodl strategy means a trader buys crypto assets and does not sell them for many months.
Compared with crypto staking, hodl does not sound attractive, for it does not bring you additional benefits. So your coins stay idle, with no use and no benefits. So it is undoubtedly better to put coins in staking and receive rewards by holding them. You may try any strategy and trading tool on the WhiteBIT crypto exchange.