How to Make Money Through Staking?
What is Staking?
All cryptocurrencies (digital currencies) are using a certain consensus algorithm to ensure the reliability of financial settlements and prevent fraud schemes. Today, one of the most widespread consensus algorithms is Proof-of-Stake.
PoS involves buying the coin and keeping on the online wallet for a certain fixed period. The system chooses the participant who creates a new blockchain data unit depending on the amount of money the user possesses and sometimes other criteria set by the developers. The user sum involved in the reward distribution is called stake.
The major advantage of this process is that you’re only reserving this wallet sum as a stake and can sell it anytime you want to stop staking. You should remember, however, that the stake that won a block reward is freezed for a certain time period depending on the maturity rate.
What It Takes to Become a Staker
- Get to know which cryptocurrencies use PoS. The list on our website might help you find the most profitable one.
- Go to the cryptocoin site, all its social media channels and related materials to check the enterprise credibility and profitability
- Install a wallet by following the steps outlined in the corresponding guide. Pay special attention to the description of their version of PoS and learn the wallet installation and staking activation guide(s)
- Acquire the minimum staking amount on the exchange and activate wallet staking (the wallet should be online 24/7 for active staking)
- Keep up with the staking profitability stats on our site and your investments will always generate the biggest income
You can read more on Proof-of-Stake technical aspects and on the digital economy laws of block reward distribution in our special article .
Please note that there is a large amount of fraud schemes in the world of cryptocurrency these days, and checking the project reputation online may save your money. The growing Proof-of-Stake popularity may attract scammers. No real Proof-of-Stake project offers to attract more users as an unavoidable condition for staking - this a sign of a classic Ponzi scheme. In case you are receiving a suspicious email regarding your crypto investments, it’s always better to contact the cryptocurrency developers and verify the authenticity of the message. In any case, invest only the money you can afford to lose.