The magic of staking steem
In my last post, I've written about how to build a regular, stable income by staking tokens. Instead of cashing out all your earnings from this platform, I suggested that you stake it, or at least part of it, to build a stable income in the long term.
The magic dimension of staking
When you leave your money in a bank account, you will probably get 0 – 3% interests on your money. These interests will probably be paid to you at the end of the year. If you have 1000 $ in your bank account, you will get 30 $ interests if rates are at 3%. This is great but it doesn't even come close to the potential of this platform.
To illustrate the potential of staking, I would like to make an example with you
Let's say you start the year with 1000 Steem and you stake all your tokens. In this example, you don't make posts.
Organic growth of your stake
When you have tokens staked, your stake will actually grow at a rate of about 4.23%. You don't have to do anything to get this. What is interesting is that this interest isn't paid out at the end of the year, your stake is actually growing every minute!
Using your stake
There are several ways how to make a nice return on your stake. You can either delegate your tokens on a platform like dlease.io and you can get a return between 20 - 25%.
Another way of generating a return is simply to use your stake to curate posts. By upvoting content, you will receive curation rewards. 50% of the value of a post is distributed among the curators. This can be even automated.
Whether you delegate or you curate, you can get a return of about 15 - 25% on your tokens. The amazing thing however is that you get daily payouts of these activities.
Staking pays you out every day!
At first sight this seems not to be a big thing but it actually is. Your stake is growing organically and also thanks to curation/delegation. You earn 4.23% from organic growth and about 20% from curation/delegation. This is a total of 24.23%.
However this is not everything! Because of the fact that your tokens are paid every day, you can reinvest all your earnings and you will thereby generate compound interests!
In the table below, I've made the calculation for a whole year and thanks to compound interests, the APR of my stake reached 27.46%. This is about 3% additional return just from compound interests! Where can you get 27.46% on autopilot?
Now imagine that you make your stake grow by producing content regularly. This gets really interesting! Also remember that you can make your tron stake grow at the same time just by linking your steem account with a tron wallet!
In short the potential of staking economy is simply mind blowing. Once you have discovered that, you should do everything possible to make your stake grow as fast as possible.
Let's connect on Steemit, Lbry or on Publish0x
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Hello @achim03
It's interesting that painting you brought to share. I'm not very proficient with Excel, but I know it's a great tool for calculations.
You are right that stake is something that in time brings benefits.
You just have to see it as something long term, which is what many don't see, that in general they want everything immediately.
I believe that staking is only possible once your basic needs are covered (lodging, food, electricity,...). It is a perfect way however to store value and to have this money work for your. It's a long term work but one that can really pay out well. Thanks a lot for your comment!
@tipu curate
Upvoted 👌 (Mana: 4/6) Passive income - now with TRON rewards! || Compare APR
This is a great article. How much Steem Power do you need before you can start making curation rewards? I rarely get any curation rewards?
Hello friend @therecantonlybe1 , the exact amount of Steempower you need I don't know, but even with 100steempower you already receive benefits by curatorship. In your case, you're only 19, so you have to accumulate a little more so you can receive benefits.
What @josevas217 answered is spot on. You need about 100 SP to start being able to generate curation rewards. It is important to vote with 100% when you have a small account. Thanks a lot for stopping by!
Thank you both for your response. I traded some SBD for Steem so that I could stake them. I have also set all of my earnings to go straight to Steem Power. When I vote it does not give me a choice to pick a percentage when voting.
Hello @achim03, It is the first time that I see this in the short time that I have been in steemit, I find it very interesting, especially due to the need to generate income passively, so to speak.
Great post..!
Thanks for stopping by. Staking is a great addon on this platform and can bring a long term benefit.