Imagine being able to mine without buying expensive hardware or doing any routine maintenance. That’s what staking cryptocurrency is all about. It is, therefore, a great way to potentially earn passive income in the digital asset markets.
This guide discusses how to stake coins as well as the benefits of staking.
Proof of Stake
Proof of stake is an alternative consensus algorithm that rival’s Bitcoin’s proof of work. Unlike mining, which requires massive electrical power to validate transactions, staking is an eco-friendly process.
An individual partaking in network validation stakes their own coins and is subsequently rewarded more coins, proportional to the number of coins they have staked. The more coins a user stakes, the higher his or her validation power becomes. Continue reading…