What is Crypto Staking and its benefits?

What is Crypto Staking and its benefits?

By Mabla | nick07 | 18 Jun 2020


Crypto currencies are always being mined and blocks added to the blockchain on daily basis. For every block added to the blockchain the miners are rewarded in crypto currencies and these miners have large pools so they are capable solving algorithms faster compared to individual miners. There is another way of doing this which is efficient called the ‘Proof of Stake’.

Meaning and Process of Proof of Stake

Unlike in the Proof of work, here there are validators which validate the blocks on the blockchain through locking up their crypto currencies and stake them and they get rewarded for that. They are rewarded according to the number of coins they stake and this process is used to mine any type of crypto currencies including Ethereum, Ethereum Tokens, and Dash etc.

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How to stake coins?

It’s not a complicated process, you just download your preferred wallet for example Atomic Wallet is the most easiest and straightforward, there is a section just on the history tab and its clearly written staking so go on and click there then you will see a list of coins you can stake e.g. Cosmos, Tezos, Tron, Komodo etc.

The yearly yield percentage is written on top so you will be able to compare which coin has better rewards then select the coin preferred. All you have to do I buy the preferred coin or exchange within the wallet then click on the stake option then you are done.

So you will have to just wait and whenever a block is validated on the blockchain you will then rewarded your percentage profit of staked coins. It’s a very good and stress free investment as compared to buying and selling crypto currencies on exchangers, and the advantage of this, as your coins increase so as the value of your investment.

How profitable is it?

This is not a High Yield Investment (HYIP) were you invest and get huge profits in a short period of time, it takes time to make profit as the reward is based on the blocks validated and also number of coins you stake will determine the level of your profit. So if you are rich you will get richer but if you are not then you will make smaller profits.

Conclusion

It’s a good investment and you can rely on it, just find you preferred wallet. Instead of just storing your wallets in wallets it is better to stake them and make profits.

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