What is staking?
In our previous articles, we talked about different ways to earn cryptocurrency. In this one, we will take a closer look at staking.
Staking is one of the options for passive earning of cryptocurrency by storing coins on a cryptocurrency wallet, for which users get a reward. So many users consider this method as an additional source of income.
All digital assets for staking work on the basis of Proof of Stake (PoS). This process of cryptocurrency mining is considered the most environmentally friendly since it does not require a large amount of equipment.
The principle of PoS operation:
— The network analyzes the number of digital assets on users’ wallets. Whoever has more of them will most likely get the right to record information about transactions in the blockchain. It will happen by calculating using the investor’s equipment. It is worth noting that staking is possible only when the computer is turned on.
— As a reward for the work done, the user receives a project’s currency.
— The advantage is that the process is automated and does not require any intervention on the part of the asset owner.
Therefore, we understand that staking is mining, only based on the PoS algorithm.
How to make money on staking?
- First, choose the project/cryptocurrency you like and make sure they support staking.
- The next step will be to search for a wallet that supports the staking of the cryptocurrency you like.
- Almost done. You need to buy a cryptocurrency and put it in the wallet you chose.
- The process has begun. You can find more detailed instructions on the platform you use.
This method may seem very easy, so there is a chance to face scammers who offer large profits. Before investing, make sure that the platform is secure.
