As we've discussed throughout the AlterCap Knowledge Base
, cryptocurrency offers many advantages over fiat currencies. One of the most exciting of these is the ability to generate consistent, barrier-free, passive income through staking.
In the traditional economy, the only people who can really 'put their money to work' are the elite. Financial institutions control capital markets, and ultimately bar retail investors from accessing the most profitable opportunities. The passive income generation products that are
available to regular people, such as cash deposits and fixed-income funds, offer low returns and unfair restrictions, including multi-year withdrawal locks and sky-high penalty fees.
Equally accessible to retail investors, high-net-worth individuals, and to institutions, staking is a better alternative for passive income generation. Benefits of this emerging financial tool include APYs as high as 20%
, and 24/7 access
to assets. Today, we would like to answer just a few of the questions we often hear about this new, exciting, opportunity.