The buying and selling of cryptocurrency in exchanges to earn fast money can be a risky game.
The change of prices for cryptocurrency can be so unpredictable.
A single negative news can easily cause the fall of price to the bottom for some coins.
With the price falling, the hearts of investors may even get panic attack especially if they have put in everything they have.
There are two types of staking – Proof of Work and Proof of Stake.
The below videoclip would give an explanation of both.
Video Source
From the above videoclip, we understand that Proof of Work is actually mining that miners solve Mathematical puzzles and cryptocurrency is given for the work that miners do. This uses lots of electricity so not very economical. They also need mining equipment to do it. Miners need to compete with other miners to earn.
For the Proof of stake, there is no need to solve Mathematical problems of algorithm. People who stake would mint or forge new blocks rather than solving puzzles. The larger the stake that one has, the greater chance of getting chosen to forge the next block to earn a reward. This sound a bit like the miners at steem engine and hive engine where the higher stakers have higher chance of getting a reward like a nice lucky draw or lottery.
Most of us can easily go into proof of stake that do not need extra mining equipment or excessive electricity. We simply put the cryptocurrency into a deposit and start to earn a reward.
The incentive of staking coins is like a fixed deposit in a bank so it is much safer with a more stable interest rather than trading on exchanges.
Some Popular Ones
Some of the popular ones for staking are Tezos, Dash, Sythetix, NEO, Algorand, Loom, Decred, Cosmos, PIVX, Neblio, Icon, QTUM, OKCash, NAV Coin, Stratis etc.
Below is a videoclip about Tezos Staking.
Video Source
Staking cryptocurrency is simply keeping our cryptocurrency wallet open to let it run which may get an estimated of 1% to even 6% for return.
Exchanges that offer staking
Most of the cryptocurrency may require their respective wallets for staking but there are many exchanges that offer such service nowadays.
Big names like Binance, Coinbase, Huobi, Poloniex, Bithumb, IDEX, Kraken, OKEx, KuCoin and many others.
Exchanges may charge a fee while some may offer zero fee for staking certain coins.
I do admit that we can earn faster by trading on exchanges if we are able to buy low and sell high at the right time after lots of research.
Staking cryptocurrency may just be the safe way for many who do not want to go through the research and trading and earn cryptocurrency passively without spending much of their precious time.
Disclaimer: This is my personal reflection and I am not in any position to instruct anyone what they should do. I am not responsible for any action taken as a result of this post. My post can only be a reference for your further research and growth. By reading this post, you acknowledge and accept that.
