Staking cryptocurrency is one of the ways to support the network and also to generate income for users. Cryptocurrencies often pay their users for secure , the most popular example is Bitcoin (BTC) and use Proof of Work (PoW) algorithm. Even if mining is so popular, there are few disadvantages like high energy consumption and technical difficulties. The response to those problems is staking, the way to verify and secure transactions, in exchange user is getting a passive income. Read the article and find out how you can earn money for holding cryptocurrencies and which crypto you can stake.
What is staking in crypto?
There are many ways to earn money from cryptocurrencies. Staking crypto is an example of passive income. It sounds really simple: you buy crypto, hold it in your wallet, and receive rewards, but it is more complicated. Bitcoin is one of these coins which use the Proof of Work (PoW) mechanism, which means that new blocks are needed to be mined to verify the transactions. In the Proof of Stake, you don’t need special computers and solve difficult math problems, because new blocks are produced and verified by staking. Depending on how many coins you have, you earn bigger rewards. So If you are holding more coins there are bigger chances that you will be chosen as a new block validator.
Staking ensures better support and strengthens the network, and also increases scalability. The user usually buys cryptocurrency and hold it in a smart contract. When the stake is locked up, he votes to approve the transaction (or it is made automatically).
Is staking crypto worth it?
There is no doubt that staking is easier than mining and much safer than trading. It is a great example of passive income, which in fact can be really profitable.
What are the conditions for crypto staking?
Primarily you need a good wallet, which has to be online 24/7, and you need to make sure that your wallet support staking. As there are lots of pros, there have to be some cons. The main disadvantage is that you need to wait for your coins to mature, this can take a few days, but also even a few weeks. Different rules apply for every blockchain, so remember to get to know with them.
Staking rewards – profitability
Many people who are considering start staking wonder which cryptocurrency will be the best to stake. If you want to make sure that your crypto assets will be profitable, you can easily check it on StakingRewards.com, where you can find out which coins are giving you the best staking returns.
Thanks to the staking you can get rewards, usually, it is a fixed percentage, which is not permanent, it can be changed. Staker can receive rewards individually or using the pule. If holders put their coins together there is a chance to increase the block validation and as a result the rewards will be higher.
How do you start staking crypto?
Proof of Stake (PoS) consensus mechanism is getting more and more popular in the blockchain technology. The main pro of staking is that you don’t need to invest in special computer get started to earn rewards from holding crypto. The main important thing, in this case, is the right wallet. Which crypto can be staked? The most popular crypto for staking is Tezos (XTZ) (you can get even 7% interests), also very profitable is Qtum (QTUM), on which you can gain almost 5% interests. The transition to Proof of Stake algorithm is also planned by Ethereum (ETH), which so far operates on the Proof of Work algorithm.
Our new partner, CoinsLoot introduced a new way of staking tokens. Investors who decide to stake their LOOT tokens will be able to earn rewards on every single transaction based in the smart contract. Staking reward will be depending of number Loot Boxes opened by user on the platform. As a result, the more tokens investors stake, the more profit it will bring them.
If you want to buy and stake LOOT tokens, click here.