Cryptocurrency ecosystem is a very large world. Naturally, there are many ways to make money with cryptocurrencies. One of these monetization methods is staking. So what is staking and what do you need to know about staking?
What is staking?
Staking is a way of earning money that allows people to earn rewards from certain cryptocurrencies they hold on a daily, weekly or monthly basis. It can be said that one of the advantages of staking is to make money regardless of the fall of the market. Of course, the issue to be considered here is that if the price of an asset you stake decreases, the value of the asset in your hand also decreases.
For example, you staked a cryptocurrency named x. You will earn the cryptocurrency named x for the time you stake, based on the specified win rate. On the other hand, if the price of x increases, you will still earn a profit. However, if the price of x drops, you will continue to earn the cryptocurrency named x, but the price will be lower.
One of the ways to earn passive income
There are staking processes for many cryptocurrencies in the cryptocurrency ecosystem. The staking income of some cryptocurrencies can reach 200-300 percent. However, it is also useful to know that it is risky. It is also necessary to take into account the volatility in the price of cryptocurrencies, which allows such high returns. In addition, you can earn passive income by staking cryptocurrencies with a value equal to 1 US dollar, such as USDT, USDC, BUSD.
How does staking work?
When you lock the crypto money in your hand for staking, you still become the owner of that asset. The main function here is to contribute to the blockchain of the cryptocurrency you stake, verifying the transactions taking place on the network and making the system run smoothly. In other words, it can be said that by staking, you also provide trust in the blockchain of the cryptocurrency.
Can all cryptocurrencies be staked?
Staking is actually valid for cryptocurrencies with proof of stake (PoS) mechanism. Staking is a viable system for networks and cryptocurrencies that support staking, such as Cardona (ADA), Tron (TRX)
