Home Views Cryptocurrency

Can staking still beat inflation during a crypto winter?

Khairani Afifi Noordin and Chloe Lim
Khairani Afifi Noordin and Chloe Lim6/16/2022 11:04 PM GMT+08  • 8 min read
Can staking still beat inflation during a crypto winter?
Large price drops of the staked assets could offset or outweigh any interest that investors earn.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Inflation is on the rise and investors are facing increasing pressure to find more ways to hedge their investments. Aside from the traditional methods of hedging inflation such as investing in the stock market, gold and real estate, some people are turning to alternative investments, such as staking cryptocurrencies to earn steady passive incomes.

Staking refers to locking one’s cryptocurrencies in a proof-of-stake (PoS) blockchain for a certain period of time. These locked assets are used to achieve consensus, which is required to secure the network and ensure the validity of every new transaction to be written to the blockchain. In return, those who stake their cryptocurrencies receive returns in the form of “block rewards”, or new coins from the network.

In other words — staking allows investors to lend their coins to a developer to support the operations of a blockchain network. New coins are provided to them as a reward, says RockX CEO Zhuling Chen.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.