Sweet, sweet rewards. Who is not a fan? In finance, a reward is usually something you get for nothing, be it a little interest on your savings, a cashback on a credit card, or a dividend payment from a stock.
While the whole idea of blockchain, and especially DeFi (Decentralized Finance) has to do with traditional banks and government-controlled money, one thing the crypto and traditional financial world both agree on is the rewards because , well, why shouldn't they?
Well, so what are the rewards?
There are quite a few of them actually, and they are becoming more and more accessible. You can get crypto debit cards that offer cashback, earn rewards when you "point" coins (we'll explain this later), and even earn them just for using applications made by these companies (in some cases just holding a certain coin will make you earn interest) and you can earn by learning crypto, which is kind of a double win really. Generally, these rewards are given in the form of a free piece of whatever crypto you are using, but sometimes you may be earning a different coin than the one you are primarily using. You can always exchange it for another cryptocurrency, though.
So how does it work staking?
Lo staking it is the process of holding a portion of your assets for a certain period of time. They are still yours, but during the time they are locked you cannot access the coins. Blocked coins are put to work on the blockchain and are used to settle transactions. The more locked coins there are, the faster the network gets. The main risk is that the value will continue to fluctuate as usual (except for the added interest) which means that if the coin falls in value you cannot sell it. It goes without saying that you do your research before deciding which coins to bet and how much of the coin.
How much can you earn?
It varies depending on the coins and where you bet. Cryptocurrency exchanges like binance, coinbase, crypto.com, KuCoin and others offer stake options and will tell you what the average rewards are for each coin. On crypto.com, for example, returns vary between three percent and a massive 12,5 percent for coins including bitcoin, ethereum, solana, cardano, CRO (its native currency), and more. Polkadot is the coin that returns 12,5% at the time of writing.
Decent, so where's a good place to earn?
For stakes, the seats mentioned above work well. When it comes to most other things though, crypto.com seems to love giving out prizes. Crypto debit cards offer cashback, the app offers the opportunity to wager a variety of coins for up to three months at a time, but they also have a flexible option that will make you earn less, but you can pull out the coins in any time. Sometimes they also have a "supercharged" bet option (which is a bet but with a higher interest only for a limited time, on certain coins, from time to time).
There is also something they call "missions" for which you get "diamonds" which you can use to redeem a "mystery box", which gives you free CRO. Usually, you get about a CRO or less here quotation in real time, but you can get up to £ 820 from November 2021.