We will be covering how to stake The Basic Attention Token. First we would like to go over some of the coins basics. The Basic Attention Token (BAT or the “BAT Token”) is a fairly new token that is aimed at the digital advertising industry. The BAT Token was released to the public on May 31st, 2017 and in a mere six months it reached a pretty astonishing .98 cents in value. As of 2020, BAT was noted to be the most commonly used token due to its ability to generate the best return on compound finance.
This utility token basically pays internet surfers for their attention and also pays online publishers for their content thus giving advertisers more bang for their buck for their ads. In this brief article, we will be exploring BAT more in depth in order to analyze how it works and how you can make it work in your favor to find success in potentially gaining some passive income for yourself.
How Does Basic Attention Work?
BAT is a system that is blockchain-based and tracks both the time and focus of media consumers on different websites via the web browser “Brave.” BAT is built on Ethereum (ETH) and the main goal of it is simply to be able to effectively distribute advertising funds between publishers, readers, and advertisers of online marketing ads and content.
How it works is that advertisers purchase and pay publishers in BAT to have their ads viewed by viewers, then users get a financial kickback of being able to earn rewards in the form of BAT coins for simply viewing customized ads. They can also leave BAT coins as “tips” for content they enjoy. Finally, publishers receive BAT based upon user attention, and advertisers gain significantly better ROI results because of the lack of fraud and better targeting.
Not only is the Brave web browser a privacy browser and also a digital advertising platform, but it is also open-sourced, decentralized, and it also blocks ads and trackers that follow you. It is also significantly faster than standard web browsers, especially on mobile devices (two times faster on desktop and eight times faster on mobile).
Basic Attention Token Staking
Alright so now into the good part. Which is how you can start staking the Basic Attention Token. BAT staking is simply buying, holding, and then locking up your BAT holdings in order to be able to do things like earn interest and obtain reward. When done correctly, staking your BAT is going to be incredibly beneficial to helping you gain some awesome financial rewards. BAT staking is largely dependent on how many coins you hold as this amount will ultimately determine the rewards you receive.
Not only is BAT staking incredibly safe and secure, it also allows you the ability to generate nearly as much profit as with trading or mining, free of the risk. You simply have to stake some BAT coins to get added into the mining pool and you’re set. Again, the more you have, the better the reward. If you are interested in staking your Basic Attention Token, opting to use BlockFi is going to be in your best interest to stake BAT. Read on to find out why.
Interest Rates for Basic Attention Token On BlockFi
BlockFi offers Annual Percentage Yield (APY) accounts, which give you the opportunity to be able to deposit their BAT, while earning interest. Payouts take place at the beginning of each month and interest that is earned by compounds maximizes your annual yield. While there is not a minimum balance that is needed to earn interest, there are withdrawal minimums that may be subject to Gemini’s regulations and smaller withdrawals may take longer to reach your account. The Interest Payment Flex option also gives you the capability of choosing the currency that you would like your interest to be paid in.
In terms of interest rates, BlockFi uses a tiered Interest Structure (see their website for more info on their tiering system for other coins). The interest rates for BAT on BlockFi are really quite reasonable. Interest rates for the BAT Token on BlockFi are based upon the aforementioned two tiers. For a Tier 1 interest account, which is 0 – 25,000 BAT, you would be looking at an interest rate of 3.65%. For a Tier 2, which is more than 25,000 BAT, interest rates are 1.4%. Interest accrues daily and you will find yourself earning interest on your interest every month.
Please note that these rates can most certainly be subject to change as interest rates vary and can drastically fluctuate with market value.
Benefits To Using BlockFi
While BlockFi is an independently-owned lender, you can reap the benefits thanks to the fact that this company is backed by notable,trusted financial institutions, such as SoFi and Fidelity, and it is USA-based and regulated (though it is available for use worldwide). There are a ton of great benefits to using BlockFi. For example, on BlockFi you can buy, sell, and trade BAT and other coins such as Ethereum directly from the website. Trading is instant and everything is stored right on your BlockFi account, saving you a ton of hassle. It also lets you borrow against your coins with reasonable rates, and you can receive loans without losing your crypto.
Another perk is that you can also earn interest on coins like BAT, putting your money to work and making some in return. BlockFi also gives you the opportunity to be able to earn upwards of 8.6% annually on the cryptocurrencies you hold, including BAT (that’s roughly eight times more than other crypto savings accounts). You really can’t go wrong with staking BAT on BlockFi, there are no hidden fees and no monthly fees either.
Staking Basic Attention Token is undoubtedly going to be a smart move towards finding a great deal of financial success in the world of cryptocurrency. The good news is that staking BAT is a simple thing to accomplish thanks in large part to websites and apps like BlockFi who take the guesswork out of the staking process and make it super easy and user-friendly as well. It should be noted that investors in the United States will receive a 1099 from BlockFi each year which states how much interest you have received for the year and it is your responsibility to report that interest when filing your taxes. International investors are responsible for managing their own interest and taxes for reporting purposes.
The interest that you can gain and the rewards that can be earned through using BlockFi are a cut-above-the-rest. Again, the entire process from start to finish is simple to accomplish, and you can start earning interest and trading right off the bat. BlockFi is the perfect crypto savings account for beginner to intermediate crypto investors who are ready to take their trading to the next level and make their crypto work for them for the long run and start to see some pretty huge rewards in the process.