Staking has grown increasingly popular since the emergence of the Proof-of-Stake (PoS) consensus mechanism. The industry has witnessed the emergence of all sorts of platforms where people could stake crypto in exchange for rewards.
Most platforms operate by gathering funds from those staking crypto in exchange for rewards, also called the yield, and subsequently directing the acquired funds to liquidity pools or to cover other financial needs.
Liquid staking implies that a user who forms a crypto stake, a certain amount in crypto (mostly ETH, ranging from 0.5 to thousands) receives so-called ‘liquidity tokens,’ which they may subsequently sell on an exchange if that token gets listed.
Some staking projects also allow users to become network validators. Projects like Stakefish utilize a network of Web3 wallets (such as MetaMask) to stake users’ crypto, primarily ETH.
When it comes to CryptoStake, our goal is to ensure the maximum protection of user funds by providing a non-custodial solution (wallet). This solution allows users to retrieve their crypto staking rewards through a unified seed phrase across all compatible crypto wallets (Exodus, Atom, etc.).
CryptoStake’s non-custodial wallet, produced in the form of the proprietary crypto staking app, features a one-click mechanism that enables users to create a unique validator with an identification number. This number is displayed on our monitoring network as well as other platforms, ensuring the security of a given validator. In essence, users can stake crypto through validators while retaining full control of their funds in their wallet.
In other words, CryptoStake never gains control of user funds; it functions more as a system for monitoring validator status, while they can earn interest on crypto in a safe environment with us being a trustworthy intermediary.
The user only needs their validator number, along with the public and private keys, to restore the validator at any time, even without relying on our service.
The primary concept behind CryptoStake is to demonstrate that non-custodial staking on our platform is safer than traditional crypto wallet storage or liquid staking. Safety is achieved through a 7-day unstaking period and the provision of a validator number.
CryptoStake’s advantage over liquid staking pools is rooted in our exclusive use of utility tokens like ETH that boast a solid annual percentage yield or APY. Utility tokens actively contribute to blockchain operations, unlike liquidity staking, which provides users with unbacked tokens in exchange for cryptocurrencies with genuine value, such as ETH. These unbacked tokens can be susceptible to losses during FOMO events or even theft.
It’s crucial to understand that CryptoStake does not, and cannot, offer crypto staking rewards greater than what a specific blockchain network permits. We prioritize the security of crypto assets by providing users uninterrupted access to the validator node on a designated server and ensuring control over their crypto funds stored in their respective wallets. It’s worth reiterating that CryptoStake does not have access to user funds; we only require a specific file to launch the validator.
Our service is designed for customers who require proof of ownership to meet regulatory requirements and for taxation purposes. CryptoStake offers a complete reward allocation history for the entire staking period, along with statements suitable for taxation authorities. Furthermore, CryptoStake provides a single access point for four top cryptocurrencies (ETH, DOT, ATOM, and ADA), each with inherently different staking and reward claiming mechanisms. However, users won’t need to worry about these differences if they choose to stake with CryptoStake. An in-built crypto staking rewards calculator shows an expected yield across different timeframes, while the collection process is minimized to a few clicks.
CryptoStake generates revenue from network fees for ‘renting’ our validator capacities on servers, except for ETH where we receive ‘execution fees.’ Our fees, which are set at 3%, are among the lowest in the industry. It’s essential to note that our marketing strategy is centered on attracting ‘whales’ with significant ETH holdings. We promise them complete asset protection in the long run, the ability to retrieve assets from the wallet without our intermediary assistance, and support in dealing with tax-related matters.
Key takeaways:
- CryptoStake prioritizes the security of funds and proof of their legality over offering extravagant staking rewards.
- Users become full-fledged network validators instead of receiving low-value tokens.
- Our primary clientele consists of ETH whales, with a future focus on BTC holdings
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The above information regarding CryptoStake, its concept, and operations, is intended for informational and marketing purposes only. Full or partial copying, reproduction, or publication of this material is prohibited without prior written consent from CryptoStake. Nothing in this material constitutes financial or investment advice. For more detailed and up-to-date information about CryptoStake, including news, products, and offers, please visit its official website https://cryptostake.com/ or follow its official social media accounts:
