Crypto Staking is One of the Best Ways to Grow Wealth This Year – But Where to Invest Securely?

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The crypto market is entering a new period of growth in 2024 according to market analysts.

With a series of Bitcoin spot ETF approvals and the next Bitcoin halving event on the horizon, it wouldn’t be surprising to see the market set new highs this year.

Along with crypto investment, crypto staking is also growing popular.

But the problem is that crypto staking doesn’t have an excellent track record. A part of it has to do with the massive crashes in the crypto market in 2022. But more importantly, crypto staking systems are poorly designed.

Often, projects use staking as a mechanism to encourage long-term holding of the token with the promise of attractive passive rewards. In theory, it’s an excellent strategy. But in practice, it falls short when the underlying project is incapable of supporting the reward system.

To give you a better picture, staking systems are mostly tied to tokenomics. A portion of the supply is set aside to be distributed as rewards to investors who have locked their tokens with the platform. While the goal is to limit the token supply, it actually leads to an increasing supply sooner or later.

The most tragic part is, they cripple the internal economy of the project without a solid foundation. The value of a crypto token is dependent on its project and user base. If the project stagnates and fails to build a growing user base, the organic demand for the token declines, eventually leading to a collapse of the token price.

A large mound of staking rewards is useless when the token price slips at a faster rate. In essence, we need to look beyond the APYs when choosing a crypto staking platform. As it applies