STACKING 101

 How does one earn from Stacking?

This is the same question I had when I first heard about Stacks, it is a word I would find being repeatedly mentioned here and there, so after I made my research this is what I found out.

As mentioned in my previous post, 

Stacking is holding Stacks in (STX) your wallet and locking them for a specific period of time, which in turn earns you Bitcoins as a reward. This means that Stacks (STX) not only can be used as a method of payment for one wallet to another but also doubles as a way of investing since it can earn you bitcoin rewards

This means that by locking your STX, you get rewarded in BTC, and this reward is usually approximately 9 to 10 percent APY which is way more than what most banks give for saving accounts, for example in the US, according to the SmartAsset website, most banks offer an average of 0.04 percent APY which is a staggering 250 times! less what is offered through Stacking. So now let's delve a little into how much you can expect to earn from Stacking looking at the different scenarios.

What happens when the price of BTC falls?


When the price of BTC falls while the price of STX remains the same or moves higher, it means that those who are participating in Stacking earn more BTC.

What happens when the price of STX falls?


When the price of STX falls and the price of BTC does not go lower, it means that those participating in Stacking earn less BTC since this would mean that the value of the STX stacked has reduced hence a reduction in the earnings in BTC.

What happens when both prices of STX and BTC remain the same?

What this means is that the expected amount to be earned will also remain constant. 

Quite simply put, Stacking is really a wonderful way to invest or just put your savings because unlike other cryptocurrencies staking, the rewards from Stacking are in form of a much more established cryptocurrency i.e Bitcoin.

Here is a simple calculator to see the expected amount to be earned from Stacking STX. 

Ways of Stacking include Stacking by yourself is you have the required minimum through wallets like Hiro and Xverse and these wallets also allow one to join a pool whereby many people combine to be able to meet the required minimum in order to participate in Stacking. 
Another way is also through the use of sites like Okcoin which also makes use of the pooling of funds and allows you to earn BTC rewards.

Happy Stacking 😉

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