Lord777
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Hello, today is a small post from the world of cryptocurrencies. I will tell you what staking is and how to make money from it.
A small motivational introduction. Staking is a way to make money on cryptocurrencies with extremely low risks in full passiveness. This process can be compared to a classic bank deposit. Only instead of money, you deposit your coins and get a certain percentage of the profit from them. How it works?
POS
Staking began with the Proof of Stake algorithm developed in 2011. To understand what it is, first you need to remember how mining works. Mining is a Proof of Work algorithm by which miners invest their computing power to sign new blocks and keep the entire blockchain alive. The downsides are obvious. Huge energy costs and the constant need to update your video cards. Therefore, a group of craftsmen came up with a POS that consumes almost no electricity, while remaining the same reliable way to maintain the network.
Instead of miners, here are validators - coin holders. They stake existing coins to sign new blocks on the blockchain. Roughly speaking, the blocks are confirmed by the embedded coins that the validators have blocked on their wallets. The Block Signed Reward is the sum of all transaction fees in the block. The most chances to get rewards are from the validator who pledged the most coins. Nevertheless, new players also have chances to receive their commissions. For this, the POS algorithm has randomization, as well as taking into account the age of coins. The longer you steak, the more chances you have of signing a new block. At the same time, the age of the coin is reset after each signing, which makes the system very transparent. Hacking it is also quite difficult, because in case of any manipulations with coins,
How to start steak?
The easiest way to do this is through an exchange like Binance. Everything is clearly described there, a clear interface, a small entry price and it is easy to calculate the profitability. But that's not really staking. The guys collect pools of coins from different ones, which already stake themselves. If you want to do staking yourself, then you need to start a separate computer, which must be turned on around the clock. The processes for setting up staking vary from network to network. Somewhere you will need to enter a couple of commands, somewhere just fix the coins on the desired wallet with a convenient interface. In general, it doesn't matter. Everything is described in detail on the viola websites. The following is important - you need money. For example, to steak Etherium 2.0 you will need 32 coins, which, for a minute, is under $ 100 thousand. For the more modest altos, these sums are certainly lower, but almost always exceed 5-10 thousand dollars. Therefore, if you want to steak a small amount, your option is only through intermediaries. Staking is available on most viola today. For example SOL, AVAX, DOT and many others. In general, you can count on a yield of 10% per year, which is very cool. But again, the amount of reward varies from coin to coin.
Outcome
Staking is a deposit in the world of cryptocurrencies. The thing is very cool, so you can try it. As one classic said, money should work!
A small motivational introduction. Staking is a way to make money on cryptocurrencies with extremely low risks in full passiveness. This process can be compared to a classic bank deposit. Only instead of money, you deposit your coins and get a certain percentage of the profit from them. How it works?
POS
Staking began with the Proof of Stake algorithm developed in 2011. To understand what it is, first you need to remember how mining works. Mining is a Proof of Work algorithm by which miners invest their computing power to sign new blocks and keep the entire blockchain alive. The downsides are obvious. Huge energy costs and the constant need to update your video cards. Therefore, a group of craftsmen came up with a POS that consumes almost no electricity, while remaining the same reliable way to maintain the network.
Instead of miners, here are validators - coin holders. They stake existing coins to sign new blocks on the blockchain. Roughly speaking, the blocks are confirmed by the embedded coins that the validators have blocked on their wallets. The Block Signed Reward is the sum of all transaction fees in the block. The most chances to get rewards are from the validator who pledged the most coins. Nevertheless, new players also have chances to receive their commissions. For this, the POS algorithm has randomization, as well as taking into account the age of coins. The longer you steak, the more chances you have of signing a new block. At the same time, the age of the coin is reset after each signing, which makes the system very transparent. Hacking it is also quite difficult, because in case of any manipulations with coins,
How to start steak?
The easiest way to do this is through an exchange like Binance. Everything is clearly described there, a clear interface, a small entry price and it is easy to calculate the profitability. But that's not really staking. The guys collect pools of coins from different ones, which already stake themselves. If you want to do staking yourself, then you need to start a separate computer, which must be turned on around the clock. The processes for setting up staking vary from network to network. Somewhere you will need to enter a couple of commands, somewhere just fix the coins on the desired wallet with a convenient interface. In general, it doesn't matter. Everything is described in detail on the viola websites. The following is important - you need money. For example, to steak Etherium 2.0 you will need 32 coins, which, for a minute, is under $ 100 thousand. For the more modest altos, these sums are certainly lower, but almost always exceed 5-10 thousand dollars. Therefore, if you want to steak a small amount, your option is only through intermediaries. Staking is available on most viola today. For example SOL, AVAX, DOT and many others. In general, you can count on a yield of 10% per year, which is very cool. But again, the amount of reward varies from coin to coin.
Outcome
Staking is a deposit in the world of cryptocurrencies. The thing is very cool, so you can try it. As one classic said, money should work!