If you’re looking for alternative ways to make extra income streams, the world of cryptocurrency has plenty to offer. A notable and popular service that is taking the world by storm is Staking as a Service, better known as StaaS. For those who aren’t yet familiar with StaaS, a service provider that can enable crypto holders to stake their decentralised currency in a coin they are interested in, thereby reducing a lot of the complexities of the process. In this blog, we’ll take a look at everything you need to know about Staas and how it helps in improving your passive income.
Benefits of StaaS for Investors
Using StaaS such as Kiln.fi allows investors to earn passive income without having to worry about the technical aspects of staking. Staking involves holding onto your cryptocurrency and contributing to the security of the network, for which you are rewarded with more cryptocurrency. However, setting up and maintaining a staking node can be a complex and time-consuming process that requires a certain level of technical expertise. Staking service providers handle all of the technical aspects of the process on behalf of investors, including setting up and maintaining nodes and distributing staking rewards. This frees up investors to focus on other aspects of their portfolio, such as trading or long-term investments.
StaaS providers also present their investors with greater flexibility and choice. With a reliable service provider, investors can pick from a wide range of cryptocurrencies and staking options, depending on their risk tolerance and investment goals. These businesses often have a variety of staking options, such as different staking periods or different reward structures, allowing investors to tailor their staking strategy to their individual needs.
Different Types of StaaS Providers
There are two primary kinds of staking service providers: centralised and decentralised. Centralised StaaS providers are typically run by a single company or entity and offer a more hands-off approach to staking. Decentralised StaaS providers, on the other hand, are run by a community of users and have a more collaborative approach to staking. Both types of providers have their own benefits and drawbacks.
Centralised StaaS providers showcase a more user-friendly experience and often have more robust customer support, but they may also have higher fees and be more susceptible to hacks or other security breaches. Decentralised StaaS providers provide more transparency and security but may be more complex to use and may have less robust customer support.
Successful StaaS Use
Several investors have successfully used the help of various staking service providers to build passive income. Some investors have used StaaS to generate a diversified investment portfolio, combining staking rewards with other forms of passive income, such as rental income or dividend payments. Other investors have used StaaS to expand their cryptocurrency portfolio, using staking rewards to invest in new cryptocurrencies or to increase their holdings in existing ones.
StaaS Fees and Costs
Like any other portfolio iten in investing, Staking crypto using a facilitator comes with fees and costs. Such service providers usually have a fee for their aid, which can range from a margin of the staking amount to 20% of your staking rewards. The plus point is that such fees are often lower than the charges associated with other kinds of passive income. Moreover, StaaS providers also have tiered fee structures or discounts for larger investments.
To have a staking system in place, a person needs an extensive idea about how the technical aspect of it works to ensure monetary benefit. However, Staking as a Service has made it infinitely simple for any cryptocurrency holder to stake their coins, even in pools. This has dissolved many borders and brought an equal opportunity to build a passive income for all who wish to participate. We hope our blog helped you understand the concept better!