What is a Compounding?
In cryptocurrency, compounding is the act of reinvesting your staking rewards into the staking pool to generate more profits over time. For example, you stake 1000 tokens of a particular token and, after a week, you receive ten tokens as staking income. You can now take those ten tokens and put them in the staking pool, giving you a total of 1010 tokens in the pool. As a result, your staked tokens will now generate more income since you increased your holdings in the staking pool.
What is APY?
Annual Percentage Yield (APY) is the rate reward paid in the Digital Surge Earn Program. This rate is the nominalized rate as an asset would yield when factoring in compounding rewards over a one-year period.
Rio Staking provides the opportunity for customers to earn passive income without investing precious time. Fix monthly profits which are not linked to market bear or bull runs.
A sustainable cryptocurrency is one with low energy consumption and minimal carbon footprint. It doesn't require vast amounts of energy to power its transactions and is constantly working on reducing its environmental impact. The community of such a currency is dedicated to organizing various eco-initiatives.
The Rio Group of Companies has successfully delivered The Rio asset wallet and Rio coin, our future goals are to provide the best staking plans, Accessibility, Liquidity, Independence from Central Authority, High Return Potential, and No Government Regulations to worldwide customers and investors.
What is Staking?
In simple words, staking is the process in which you agree on granting a portion of your crypto to a blockchain network. The blockchain network uses your crypto for the betterment of the network for example, conforming transactions in an enhanced way. You are given a high interest in your crypto stake in return as a reward.
Doesn’t it seem like the banking system? You put your money in the bank in the form of a fixed deposit, and the bank puts it to work for them. In return, you get interested in your deposited amount, right? In terms of returns, staking crypto is considered much better than depositing money in a bank.
Understand The Mechanism Behind Staking Crypto Staking is considered to be a new way that aids in confirming transactions. This process of confirming transactions occurs only in the cryptocurrencies that use the proof-of-stake model. So, any cryptocurrency that uses proof-of-work won’t have the staking feature for example, the largest cryptocurrency, known as Bitcoin.
It basically works like this: You and many other parties grant some coins to a blockchain network. And, the blockchain network selects one of the parties as a validator to confirm the transactions. Once the validator successfully confirms it, they are rewarded with some new crypto coins. Probably, it will be the same cryptocurrency. The selection of the validator mainly depends on how much crypto they have staked. The more crypto you stake; then you are more likely to be chosen.