KDA Staking: Earning Kadena Rewards
If you're looking for a non-traditional way of making interest, KDA staking could be an attractive option.
While cryptocurrencies are generally volatile assets and involve some amount of risk, it's possible that you don't know that staking crypto could offer higher returns than you could earn in your traditional savings account. Read on to understand how you can do it.
What is Kadena?
Kadena coin (KDA) is the native coin of Kadena, a hybrid blockchain network that presents itself as an alternative to market leaders like Bitcoin (BTC) and Ethereum (ETH). The digital currency can be used to pay for transactions on the Kadena blockchain besides compensating miners for mining blocks on the network. The token is available on a number of centralized exchanges that mainly offer KDA/USDT and occasional KDA/BTC pairs.
What is crypto staking?
Crypto staking refers to locking your digital assets for a specified time to support a blockchain network's operations. Blockchains, especially those that use a Proof-of-Stake (PoS) consensus mechanism, use a network of participants to validate transactions and add new network blocks. The participants earn more cryptocurrency in return for staking their crypto as a form of insurance. However, should the stakers validate a fraudulent or flawed transaction, they risk losing some or all of their staked crypto. Ethereum (ETH) and Solana (SOL) are examples of other networks that offer crypto staking.
How KDA staking works
Staking on PoS blockchains is a continuous process since transaction validation is ongoing. Besides putting their idle cryptocurrencies to work without selling them and earning passively, KDA staking offers token holders network decision authority. That's almost similar to putting money in a savings account or investment bank and receiving interest.
What you can earn depends on the crypto supply on the participating exchange and the borrowing demand by financial institutions, commercial, retail borrowers, and staking. Stakers can choose durations between one month, three months, six months, and one year. Generally, the longer the staking duration, the greater the number of rewards based on the timeframe. What you can earn in KDA staking rewards ranges from 11% Annual Percentage Rate (APR) for a one-month plan, 14% and 16% for three months and six months, respectively, and up to 18% APR for a one-year program.
Is Kadena staking a good investment?
The best thing about KDA staking is the opportunity to earn additional tokens, which can be lucrative. You can reach more than 20% or even 100% in extreme situations during the best times, making it an advantageous investment option.
Moreover, unlike crypto mining, which requires investing in hardware whose value goes down with time, the amount of KDA you stake doesn’t depreciate. Only price movements can affect the value of your Kadena tokens.
With Kadena price forecasts showing the token price could improve and go beyond $2 in 2023 to a maximum of $2.50, this could become a profitable investment in the future at the current prices.
Tom is a freelance writer with over 15-years’ experience in content creation, blog writing, and SEO specializing in the blockchain and cryptocurrency niche. He is a philosophical figurehead who believes that to make our world a better place, we must invest in incorruptible products and procedures, of which Bitcoin and other cryptocurrencies are leading examples.