What is Flexible Staking and How Do You Earn With It?
What Is Flexible Staking?
Flexible staking is a way to earn more from your earnings with less work. The more you wager, the higher the potential upside. But, if you have a small bankroll, this method will help you do better than just betting all of your money and potentially losing it all.
It helps you earn cryptocurrency by locking in a higher percentage of your tokens than usual. It can help you maximize the returns from your bitcoin and altcoin investments while also giving you the option of withdrawing or requesting more funds.
When someone stakes their tokens on the outcome of any event and win, they get bet what they staked back plus an extra 50%. It means that if someone were to gamble ten tokens, they would get 20 tokens back. If they bet on a tie, they would get nothing back.
Why Use Flexible Staking?
The more the person stakes their tokens in flexible staking, the more potential earnings there are. This method is made possible by using smart contracts in blockchain technology. It is not dependent on your wallet or any application that will allow you to stake. Also, this does not mean you need to stake all ten tokens available in your wallet at a time and every time an event occurs. It is all about smart money management and patience to let your tokens grow.
That’s why you should use it. It helps you get rich slowly, without having to invest your savings at once or risk it all in one moment. Although there is no guarantee, I advise you to use it slowly over time and see where it can take you.
So, if it sounds like it is not for you and that you are uncomfortable betting on any one outcome, then go ahead and stick to the old way of staking. But if you are ready to take the risk, I suggest you invest in some good tokens first and have some patience.
Also, don’t forget that it is only available for some tokens and not all of them. So be sure to do your research before you start flexing.
How Does It Work?
It allows you to lock in a percentage that’s higher than usual, but you’ll earn the same amount back.
If you have 25% staking, you’ll earn 25% of the profits from your wallet. With the same return on investment, you’ll get a percent more in tokens than you would with the usual staking method. In addition, your percentage is locked in for a specific amount of time as set by the smart contract. After that period ends, you can withdraw it or make an additional wager at the same rate.
If you have smaller tokens in your smart contract, like 0.5% or 1%, you can raise your staking percentage to over 50% while increasing your payout by the same amount.
Since staking requires that you put a certain percentage of your tokens into the smart contract, it doesn’t work with the same token balances as other methods like mining and masternode ownership.
Let’s assume you have 0.1 BTC to invest, and you want to contribute that to a staking pool. That means you’ll need a minimum of 0.1 BTC worth of tokens in your wallet to make the initial deposit. If yours is the only stake, you’ll receive 100% of the profits.
But, if you’re part of a pool, you’ll only receive a percentage of the profits based on your stake. The amount you get increases based on the size of your initial investment. It also decreases with increasing the number of people in the pool with you. These two factors cancel each other out, so what’s left is just the number of tokens that have been put into staking. That will determine how much money is earned from every single block mined.
The more tokens you put into a smart contract, the higher the potential profits. But, if you’re investing a small amount of bitcoins and altcoins, then your rewards will be lower than the person with more coins even though you’re in a pool together.
It’s up to you to choose the amount of tokens to put into a smart contract.
You can stake any amount between 0.5% and 100% of your total tokens in a smart contract.
But you will want to invest less percentage of your total tokens in avoiding losing all of your investment.
It can be a great way to make more from the same amount of tokens if your investments are small and you don’t have enough for regular staking pools or masternode ownership.
Advantages
- It pays out the same amount as regular staking pools, just with more significant profits.
- You can lock in a higher percentage of your tokens to earn even more money from each block that’s mined.
- It allows you to build up your investments or make withdrawals whenever you want to with either the same token balance or a different amount based on what’s allowed by the smart contract.
- Even though you have to lock in a percentage of your tokens, it’s only for the amount of time set by the smart contract.
Disadvantages
- It requires that you have enough tokens to put into a smart contract to earn a higher percentage from each block mined or at least make multiple withdrawals before you run out of tokens in your wallet.
- You can only withdraw your smart wallet tokens, but you can’t withdraw any of the tokens in a normal wallet.
- It doesn’t work with masternodes or staking pools unless they allow it to be used along with other methods, like mining.
