If you know how expensive setting up a validator node for Ethereum staking is, you would be looking for better ways to get the job done. Luckily, Staking-as-a-Service, or STaaS is a crypto staking model where third-party provider offers to be an intermediary for cryptocurrency investors. STaaS providers enable their clients to delegate cryptocurrency holdings into a staking pool so that they can stake within their means and get an opportunity to earn rewards.
If you’re interested in learning more about staking cryptocurrency as a means of making passive income, this is the right blog for you. We’ll show you how to use Staking-as-a-Service to avoid the technical aspects of setting up and managing a validator node and investing large volumes of cryptocurrencies. Let’s take a look at STaaS and all that they encompass.
How Does Staking as a Service Work?
When you use a STaaS provider like Kiln.fi, you can allot your cryptocurrency holdings to the provider’s staking pool. The delegated holdings will be used to stake on a network of your choice and earn rewards. With an equitable method like this, the rewards are distributed among the pool investors and are charged a nominal fee in return.
What to Consider When Choosing a Staking-as-a-Service Provider?
There are several factors to take into account before choosing a Staking-as-a-Service provider:
- Reputation: Look for a provider with a good brand streak and consistent results in the industry. Go through their press releases and reviews, and watch crypto experts talk about them.
- Fees: Staking-as-a-service providers will usually charge a fee as a commission for their services. You can look up various service providers for comparison before arriving at a final name.
- Security: Since cryptocurrency and blockchain are sensitive over security, ensure that the service provider has the most effective measures in place to protect your holdings.
- Customer Support: Choose a STaaS provider that can be transparent with its customers and offers round-the-clock support across multiple channels.
Benefits of Staking as a Service
Staking as a service offers several benefits for cryptocurrency investors, including:
- No Technical Expertise Required: While dealing with STaaS, you don’t need to be a techie or expert. The service provider handles all the technical elements of the validator node. All you have to do is delegate your cryptocurrency and enjoy the rewards.
- Lower Barrier to Entry: Setting up a validator node is an expensive affair because it locks in your cryptocurrency for a time period. However, STaaS providers help in lowering the barrier by helping investors to pool in smaller denominations.
- Diversification: An STaaS provider can aid in staking multiple cryptocurrencies without having to deal with multiple validator nodes.
- Flexibility: STaaS providers offer more flexibility to your investments as you can add or remove your cryptocurrency holdings from the staking pools per your desire.
Staking-as-a-service is a trend on the rise in the cryptocurrency world. By providing a convenient and simplified process for investors to boost their passive income, these companies have great potential to help build wealth. We hope your takeaways from this blog can help you pick the best provider in the market.