💰Understanding Crypto Staking to Enhance Company Financials

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📘 Crypto Staking 101: Staking is a way of earning rewards while holding onto certain cryptocurrencies similar to interest for bank balances or dividends for shares. Only cryptocurrencies that use the Proof of Stake (POS) model can be staked such as ETH, SOL, etc.

🌟 Benefits of Crypto Staking: Earn passive income and Investment Diversification

⚠️ Risks of Crypto Staking: Technology Risk, Liquidity Risk, Compliance and Regulation Risk

🔧 How to Start Crypto Staking: Most major exchanges (such as Coinbase, Binance, and Gemini) offer staking services. Staking is not difficult. The problem lies in how to choose the staked tokens and the staking duration.

🧾 Accounting for Crypto Staking: For the crypto staked, we can account for them as intangible assets similar to other crypto. Generally, accounting for the staking rewards upon receipt is more common due to its administrative ease and lower tax burden. However, it may lead to more volatile net profit. It is important to consistently apply the chosen method and avoid cherry-picking for different crypto.

Related materials : https://www.aemledger.com/post/understanding-crypto-staking-to-enhance-company-financials

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