Crypto Staking.Earn passive cryptocurrency.
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Crypto Staking.Earn passive cryptocurrency.
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Staking is an activity where a user locks or holds his funds in a cryptocurrency wallet to participate in maintaining the operations of a proof-of-stake (PoS)-based blockchain system. It is similar to crypto mining in the sense that it helps a network achieve consensus while rewarding users who participate. In staking, the right to validate transactions is baked into how many coins are “locked” inside a wallet. However, just like mining on a PoW platform, stakers are incentivized to find a new block or add a transaction on a blockchain. Apart from incentives, PoS blockchain platforms are scalable and have high transaction speeds.
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how much can you make?The protocol randomly chooses coins to validate a block. The more coins you stake, the higher the chance of your coins being chosen, and thus the higher your potential profit (usually between 5–12% returns, but sometimes more).
Diversify Your staking portfolioThere’s an incentive, therefore, to put all your money in the same coin to increase the chance of being chosen to validate more transactions and earn more rewards. But if you want to make a consistent profit, diversification is still the best strategy.
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