Any investor in cryptocurrencies wants to receive passive income without the cost of purchasing expensive equipment. Staking is here the perfect solution.
Staking, what is it?
Any investor in cryptocurrencies wants to receive passive income. But mostly there are expensice cost of purchasing equipment. When mining cryptocurrencies on POW, this is not possible due to the growing complexity and obtaining blocks by selecting the only correct hash. Alternatively, the earnings on the coins having a different mechanism of consensus — POS. This type of mining is called STAKING.
Cryptocurrency Staking is an alternative method of mining, which involves storing virtual coins on a wallet connected to the Network. In other words, it is the mining of coins working on the POS consensus mechanism. The principle of earnings is similar to buying shares and then receiving dividends or making a Deposit. Yields and Stacking methods may vary depending on the POS rules in effect for a particular virtual coin. At the same time, it is easier to earn cryptocurrency, because there is no need to buy special equipment — it is enough to have a PC, connect to the global network, buy and store virtual coins on the wallet.
How much can you earn?
While the concept of receiving rewards for storing cryptocurrency looks quite attractive, it cannot be said that you will be able to get very rich. In most cases, the Stacking rewards are less than the usual block rewards issued by the network. They are also distributed among everyone who holds coins at that point in time, which means that some users may not see the rewards for hours or days.
Depending on the price of the cryptocurrency in question, the reward for Staking can still generate substantial passive income. Every dollar earned on nothing special is easy money, especially in the cryptocurrency world. Users usually earn a few percents of their Staking balance throughout the year.
There are cryptocurrencies based on POS technology, the idea of which is to save the cryptocurrency community from high energy costs and expensive mining equipment. In addition, when it comes to equity participation, in addition to the financial component, some crypto projects pay special attention to environmental safety.