Cryptocurrency is not new in our modern world. Yet, many people are still discovering the value and benefit of these great assets, and the asset class more broadly, on a daily basis. Cryptocurrencies are the brainchild of cryptography experts who were looking for a new financial tool that could wrest control from central financial institutions that had proven themselves ineffective and greedy. Cryptocurrencies were created as the product of a decade of conceptual work that culminated in the launch of Bitcoin in 2009. Initially, investors saw cryptocurrency as a gimmick that amounted to little more than a novelty.
Today, investors are utilizing cryptocurrencies for a wide berth of financial necessities. From the use of passive income-generating staking opportunities to the day trading capacity that crypto assets allow for, users are getting the most out of this financial resource. One great opportunity that can’t be overstated is the use of swaps and staking to generate ongoing profits. With a platform like Soku Swap (see more at sokuswap.org), building toward truly passive income is simple and highly effective. A stake acts much like a traditional CD at your bank: You deposit funding into a locked (or occasionally free-floating) investment product and enjoy the dividends as a result.
Staking is just one way that cryptocurrency and DeFi users are leveraging their holdings. Continue reading to learn more about what these asset opportunities can do for you and how you can learn more about the crypto world as a whole.
Cryptocurrency staking is a fantastic new way to earn passive income.
With a platform like SokuSwap, it’s incredibly easy to build a large-scale staking portfolio that pays out regular and high-interest dividends that are true passive income. Investments that earn passive capital are often hard to find. This is because most traditional passive income generators only provide a trickle in relation to their principal investment. Cryptocurrency and the staking space within it are different, though.
Cryptocurrencies are a naturally fluctuating asset class. They behave in a similar fashion to the landscape of forex trading. Currency pairs see routine fluctuations, and yet their actual value in relation to one another rarely moves more than a few cents over short-term trading periods (of course, this can be dramatic when considering longer period investing, and as a result requires a different tact to generate great profits). Staking in the crypto world means that you’re providing the exchange with the liquidity it needs to continue facilitating ongoing trading among its users (you and everyone else who uses the platform).
Staking is a unique kind of financial arrangement, and as a result, you’re often entitled to greater rewards than in other asset classes that use a similar kind of investment structure (like bonds or CDs from your financial institution).
DeFi systems are working to remake the banking landscape.
For most decentralized finance application users, lending and borrowing is the central theme. DeFi platforms offer a new way to utilize crypto assets in leverage positions, just like a credit card user utilizes borrowed capital to make a purchase with a vendor of nearly any type.
DeFi systems are designed to reimagine what it means to participate in the financial marketplace. Instead of relying on fiat currencies as a lingua franca when it comes to borrowing, lending, and leverage, users can now loan Bitcoin, Ethereum, and other cryptocurrency assets, or borrow them in pursuit of new trading or investment opportunity.
With fast-paced, algorithmic approaches to the world of crypto finance, platforms can help retail investors become liquidity providers to decentralized exchanges, borrow capital, and more. The possibilities are truly endless.
Use a trusted research partner and exchange space to cut your teeth in the cryptocurrency marketplace today.