Cryptosmart, the 100% Italian Cryptocurrency Exchange Where You Can Take Profits and Get Passive Income

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Staking is one of the best ways to generate passive income that brings resounding success, firstly because there is no special knowledge required and secondly, because you can basically earn without having to put in certain practices or activities. Cryptosmart, a 100% Italian crypto exchange, recently launched this innovative service.

Let’s analyze the characteristics of the service.

Instead of just holding cryptocurrencies, investors can accumulate them too

Earn high returns.

All cryptocurrencies that use the Proof of Stake consensus mechanism allow investors to bet on cryptocurrencies. But how do you choose the best cryptocurrency to bet on?

While the betting process is generally profitable, it is also important that investors do their research so that they can get the most out of the betting.

In this article, we look at how to bet on cryptocurrencies, what to consider before betting, and some of the cryptocurrencies that allow you to bet.

What is staking cryptocurrency?

Cryptocurrency staking is the process of freezing funds for a period of time at your own free will in order to earn rewards and interest on the money you wager.

The ROI (return on investment) by staking is usually higher than the earnings of interest money if it is held in a standard bank account.

Technically, staking is the process of verifying transactions on some blockchain network. The underlying technology of cryptocurrencies requires a consensus mechanism to maintain the integrity of the blockchain.

The Proof of Stake consensus mechanism requires participants or validators to verify transactions while cryptocurrency is being hoarded. It is also an energy-saving process compared to the traditional proof-of-work mechanism.

How to bet on cryptocurrency

We can only bet on cryptocurrencies that use the Proof of Stake consensus mechanism.

Cardano, Solana, Avalanche and Ethereum 2.0 are some examples of cryptocurrencies that allow betting.

accumulate through the keys

Major centralized cryptocurrency exchanges allow their users to bet on cryptocurrencies in exchange for incentives.

These platforms bet on cryptocurrencies on behalf of their users. Most of the exchanges charge commission on user betting bonuses and also provide high returns.

Leading platforms such as Binance and Coinbase allow users to participate in cryptocurrencies and reward them in return. Binance’s High Yield Position feature offers a high return of up to 104.62% APY with a stake in cryptocurrencies such as AXS, SHIB, AVAX, NEAR, LUNA, ADA, and MATIC.

Incorporation by joining stock pools

When we use exchanges to bet, investors join “staking pools” run by other users and lock their money into the pools to earn rewards.

By connecting a cryptocurrency wallet to the group of auditors, investors can transfer their funds and block them for a certain period. However, before converting tokens, investors need to verify the legitimacy of these pools.

Accumulate to be an auditor

Validators are part of the blockchain network and verify transactions to keep the network secure. Coin check points are randomly selected to validate transactions.

When they successfully validate a transaction, they are rewarded with coins. Investors can earn wagering bonuses by becoming auditors themselves.

However, being an auditor to earn rewards on betting is a complex process compared to the previous two methods. Moreover, being an auditor requires users to make a huge investment up front.

Things to consider before betting on cryptocurrency

It is important to take some factors into consideration before choosing a cryptocurrency to participate. If we take a calculated approach and take into account the pros and cons of cryptocurrency, we can increase the profits by betting.

We have listed the top three factors below, which can help you choose a cryptocurrency you want to participate in.

  • Coin value: Coin value plays an important role in the long run. Investors should avoid targeting a cryptocurrency with a high inflation rate. They may earn high rewards at first, but may not earn later. Investors may be left with little or no profit.
  • Fixed Supply: Before choosing a cryptocurrency, investors need to ensure that the coin has a fixed supply. When currency trading is limited, the price will rise steadily with increased demand. Targeting this type of cryptocurrency will be profitable in the future.
  • Real-time application: The intrinsic value of a cryptocurrency depends on its real-time applications. If it is used for a wide range of real world applications, the demand for it increases and therefore its price increases as well. Before choosing a cryptocurrency to participate in or invest in, it is always advisable to evaluate its use cases in the real world.

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