Staking is a popular activity in the cryptocurrency economy. It is one of the best ways to earn extra in the crypto economy. Liquid staking on the other hand is an enhancement on the staking economy and involves a type of staking. Where users get to earn derivative tokens that they will use to participate in the DeFi market. These derivative tokens have several use cases and have been proven to be an investors’ best choice for earning extra in the market. ATOM is a popular choice when it comes to liquid staking. There are so many good reasons that make it the best for investors
Why You Should Start Liquid Staking ATOM
ATOM is the native token for the Cosmos ecosystem. Cosmos is a popular crypto and blockchain network. The performance of ATOM has made it sit in the list of large cap crypto coins on the 24th position with a valuation of over $2.8 billion. That makes it a good option for anyone interested in staking.
The big difference between staking ATOM or any other coin and liquid staking ATOM is also because it takes away the long wait of lock-ups. Users who do traditional staking have to wait for a long time to end the staking period to get their tokens back. However, for liquid staking ATOM, you tend to have access to your coins before the lock-up ends through the use of derivative tokens, stkATOM.
ATOM tokens and Derivative stkATOM
The chance for price appreciation is also a good reason why it is prudent to liquid stake ATOM. When you stake, you have two coins, the ATOM tokens and then the derivative stkATOM coins. Both of these have market values and can make you earn more. ATOM is also well supported within the crypto community and can appreciate more in value in the next bull run or market uptrend. The stkATOM which are the cloned tokens also have many use cases. Users can stake these on platforms like SushiSwap and Pancakeswap to earn more yields. That makes it a prudent decision to liquid stake ATOM
ATOM is also one of the coins with the best ROI in the space. Compared with traditional investments where investors put their money at banks and wait for a long period of time to earn just meager percentages on it, ATOM does better. When you liquid stake ATOM, the ROI earned on the stakes is substantial and better than many traditional investments or other cryptos.
Staking ATOM may offer long-term investors a good way to earn rewards. However, liquid staking multiplies the benefits in folds. Users get to participate in one of the fastest growing networks and also get the chance to earn derivative tokens. Which can be used to participate in the DeFi market for more rewards and yields. Unlike conventional staking, liquid staking allows users to access their crypto funds while they’re locked up in a smart contract. This way, they can continue to use their assets for other activities. It’s the perfect companion to proof-of-stake networks.