STAKING: A WAY TO EARN CRYPTOCURRENCIES (2).
How Staking Works.
For people who hold cryptocurrencies which operate on proof-of-stake, they hold the option of staking their coins. When individuals stake their coins, they are essentially lending their coins to the network to validate transactions. In exchange for lending your coins and helping validate, the network rewards you with additional coins – effectively allowing you to earn interest.
Advantages of Staking
Low energy consumption and environmental friendliness. Unlike mining, staking requires a lot less electricity.
No specialized skills required.
To stake crypto, you don’t need to invest in expensive equipment and electricity bills.
Disadvantages of Staking
The fall in the price of a cryptocurrency will result in losses.
Relatively low profit
Top Digital Asset Exchanges That Offer Staking
Some platforms that offer Defi staking are:
• Pancake swap
Bear in mind when choosing a cryptocurrency for staking, you need to carefully evaluate the coin through fundamental and technical analysis.
Another thing to consider is that it makes sense to invest in staking coins that you are going to invest in anyway.