crypto staking – ethereum staking:Understand Crypto Staking in Less Than 1 Minute
1. Cryptocurrency transactions can be validated by two ways: Proof of Work and Proof of Stake. Proof of Work is for mining and Proof of Stake is for Crypto Staking.
2. Both ways validate and confirm cryptocurrencies transactions onto the blockchain and in return validators get rewards in the form of cryptocurrency.
3. Crypto Staking is similar to earning interest on your bank account savings.
4. Mining is not cost-effective and energy efficient. Therefore, Crypto Staking came into existence in which cryptocurrency holders stake their bought coins to support the blockchain transaction validation process and earn rewards on their holdings.
5. Staking is easily available via reputable cryptocurrency exchanges and if you own a hardware wallet like Ledger Nano then you can also stake using your hardware wallet app.
5. Crypto Staking is less risky but rewarding. In the staking crypto process, your investment will be locked up for a period and unavailable for transfer, just like Bank Fixed Deposit.
6. Crypto Staking makes the blockchain network fast, cost-effective, and energy efficient. Instead of miners, people who participated in stake crypto receive rewards.
7. If you choose to stake crypto, your coins become part of that proof of stake process that helps to add a new block onto the blockchain in exchange for a reward.
8. Not all cryptocurrencies support proof of stake like Bitcoin only supports Proof of Work (Mining). Ethereum and Cardano support crypto staking.