When Bitcoin was a baby, it was easy to keep track of crypto assets as there was only one blockchain. But as the growth of crypto has skyrocketed, there are now thousands, if not millions, of staking opportunities, and keeping track of a complex portfolio is now not the easy task it used to be.
In the early days, traders would often manually add transactions, but this has become impractical.
Thankfully, technology is catching up, and with dapps such as Dexfolio, it's now possible to easily access account information and track staked assets.
Staking is one of the best ways to earn passive income using cryptocurrency. Different kinds of crypto assets can be staked in a liquidity pool to generate rewards, and a staked asset simply refers to any token or asset that is locked into a liquidity pool to create liquidity.
In simple terms, staking is locking away a crypto asset in a wallet or pool to provide liquidity, which is necessary to validate transactions on the chain. Holders stake tokens, and if their tokens are chosen to validate a transaction, they receive a reward. It works a lot like depositing money into a bank to earn interest.
Decentralized staking uses the Proof of Service (PoS) algorithm to validate transactions. Token holders are chosen according to the size of their holding, the length of time they have held those tokens, and a certain amount of randomization. In return for their assets being locked away, owners earn rewards.
Until recently, the Ethereum blockchain used the Proof of Work (PoW) algorithm used by the centralized platforms. But in a recent transition to the PoS algorithm as it moves toward as more decentralized model, users will be able to participate in block production by staking ETH.
When a holder stakes a particular asset, there is the possibility that the asset will be chosen by the algorithm to validate the next block. When this happens, the asset holder receives transaction fees. Owners may also receive newly minted crypto assets as staking rewards.
There is an infinite variety of coins that can be staked and even more staking opportunities. However, some of the most stable and secure coins include Ethereum 2.0, Cardano, Polkadot, Solano, and Polygon. Some other popular coins include Algorand, Cosmos and Tezos.
Some exchanges such as Binance allow staking directly on the platform, which is a good option for beginners. Ethereum staking is also an option, but it requires a minimum of 32 ETH to start staking, which can be too costly for a beginner.
The crypto market is highly volatile and full of complexity, so there is no simple answer to this question. The best way to find high staking rewards is to look at a coin's historical performance, the difficulty of the staking process, the fees required, and the funds necessary for the initial investment.
It's fair to say that you no longer have to do it manually, with a plethora of dapps now available for portfolio management.
But they are not all equal, and the new generation of defi apps such as Dexfolio aim to streamline tracking to make it easy. Dexfolio has been created specifically for the depace and aims to fix many of the problems inherent in the previous generation of tracking apps.
Users can manage staked assets, follow coin movements, maintain trading records, and check prices in real time. Dexfolio believes that portfolio management should be easy and the app is designed to be user-friendly and simple to operate.
With support for exchanges on the Binance Smart Chain protocol and also the Ethereum blockchain, Dexfolio users have access to a wide range of staking options. With Dexfolio's simple and intuitive dashboard, investors can easily buy and sell tokens and manage trading activities, including income records for tax purposes.
Dexfolio is an exciting new project in the crypto space with plans to grow along with the industry. Users will benefit from its ability to make portfolio management easy.