December 10, 2020 1:21 am

Staking to Make a Profit – What is staking?

Staking has been known in the crypto-world as a viable way to make a passive income on holding digital assets. But what exactly is staking and what kind of staking opportunities are available today?

Staking is basically the process of holding cryptocurrency in order to verify transactions as well as support the network. In return, a user who participates in staking receives a reward. And of course, there’s always a chance to earn a bit on top of that when the asset’s price goes up.

Generally, there exist two categories of staking: PoS (Proof of Stake) and DPoS (Delegated Proof of Stake). In PoS, the stakeholder’s coins are frozen for a certain time to validate transactions. Due to network limitations, there is usually a minimum amount for staking in pure PoS systems. When it comes to DPoS, all stakeholders vote to assign a limited number of validators, which then carry out the functions of the network. Users with any amount can vote with their stake for validators.

Most of the time, it is possible to stake assets directly from the crypto wallet. Plus, many exchanges provide their users with staking services. However, it’s important to understand the Proof of Stake mechanism before taking up staking.

Unlike Proof of Work, creating a block ……….


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