{"id":436072,"date":"2022-04-22T20:00:00","date_gmt":"2022-04-22T17:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/what-is-staking-in-crypto\/"},"modified":"2022-04-22T20:00:00","modified_gmt":"2022-04-22T17:00:00","slug":"what-is-staking-in-crypto","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/what-is-staking-in-crypto\/","title":{"rendered":"#What Is Staking in Crypto?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2d4c7721ce9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2d4c7721ce9\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-staking-in-crypto\/#%E2%80%9CWhat_Is_Staking_in_Crypto%E2%80%9D\" >&#8220;What Is Staking in Crypto?&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-staking-in-crypto\/#Proof-of-Stake_vs_Proof-of-Work\" >Proof-of-Stake vs.\u00a0Proof-of-Work<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-staking-in-crypto\/#Dive_Into_Staking_Pools\" >Dive Into Staking Pools<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-staking-in-crypto\/#Warning_Words_of_Caution\" >Warning: Words of Caution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-staking-in-crypto\/#How_to_Start_Staking_Today\" >How to Start Staking Today<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CWhat_Is_Staking_in_Crypto%E2%80%9D\"><\/span>&#8220;What Is Staking in Crypto?&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<figure style=\"width: 1200px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"type:primaryImage wp-image-797791 size-full\" data-pagespeed-lazy-srcset=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2022\/04\/shutterstock_2083065739.png?width=398&amp;trim=1,1&amp;bg-color=000&amp;pad=1,1 400w, https:\/\/www.howtogeek.com\/wp-content\/uploads\/2022\/04\/shutterstock_2083065739.png?width=1198&amp;trim=1,1&amp;bg-color=000&amp;pad=1,1 1200w\" sizes=\"auto, 400w, 1200w\" data-pagespeed-lazy-src=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2022\/04\/shutterstock_2083065739.png?width=1198&amp;trim=1,1&amp;bg-color=000&amp;pad=1,1\" alt=\"Ethereum cryptocurency coins.\" width=\"1200\" height=\"675\" data-crediturl=\"https:\/\/www.shutterstock.com\/image-illustration\/ethereum-crypto-currency-eth-coin-close-2083065739\" data-credittext=\"kitti Suwanekkasit\/Shutterstock.com\" src=\"\/pagespeed_static\/1.JiBnMqyl6S.gif\" onload=\"pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\" onerror=\"this.onerror=null;pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\"\/><figcaption class=\"wp-caption-text\"><span class=\"type:primaryImage imagecredit\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.shutterstock.com\/image-illustration\/ethereum-crypto-currency-eth-coin-close-2083065739\">kitti Suwanekkasit\/Shutterstock.com<\/a><\/span><\/figcaption><\/figure>\n<p>Proof-of-stake blockchains offer cryptocurrency investors another way to earn some extra cash. However, staking isn\u2019t a risk-free investment: There are some things to keep in mind. Here\u2019s how it works.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Proof-of-Stake_vs_Proof-of-Work\"><\/span>Proof-of-Stake vs.\u00a0Proof-of-Work<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Proof-of-work cryptocurrencies, like Bitcoin, utilize mining. Those with the most computing power have an upper hand on earning the reward that comes with creating the next block on the blockchain.<\/p>\n<p>Staking eliminates this barrier and allows all users to participate. Instead of miners, proof of stake blockchains have validators. A proof-of-stake consensus mechanism requires validators to stake their cryptocurrency. Staking is essentially collateral. By staking their cryptocurrency, validators have a chance at earning a reward that comes with the creation of the next block in the blockchain.<\/p>\n<p>Each cryptocurrency has varying rules required to stake cryptocurrency. The requirements pertain to how long and how much cryptocurrency has been staked. Validators who stake more crypto for a longer amount of time increase their chances of earning the reward that comes with creating the next block.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Dive_Into_Staking_Pools\"><\/span>Dive Into Staking Pools<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It may seem that the proof-of-stake system could lead to validators with the most cryptocurrency earning the block reward more often. However, proof-of-stake blockchains allow participants with less cryptocurrency to earn rewards as well. Owners of proof-of-stake cryptocurrencies can pool together their holdings to increase their chances of earning a reward. These are known as staking pools.<\/p>\n<p>Those looking to use a staking pool should keep a few things in mind: The best way to stake is with wallets or exchanges. Remember that holdings kept on exchanges are not technically in your control. Exchanges have been notorious for getting hacked. Using a wallet would be similar to taking your money out of the bank and putting it under your mattress. Your wallet, your money.<\/p>\n<p>Proof of stake cryptocurrencies have ushered in a new era of income-generating assets. A few of the most prominent proof of stake cryptocurrencies are Ethereum, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/solana.com\/\">Solana<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cardano.org\/\">Cardano<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/tezos.com\/\">Tezos<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.algorand.com\/\">Algorand<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.avax.network\/\">Avalanche<\/a>, and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/polkadot.network\/\">Polkadot<\/a>.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Warning_Words_of_Caution\"><\/span>Warning: Words of Caution<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<blockquote class=\"admonishment_warning\"><p><strong>Warning:<\/strong> To be clear, this is not investment advice and we are not recommending you invest in cryptocurrency or begin staking. You do so at your own risk.<\/p><\/blockquote>\n<p>If you are thinking of staking, be aware of those lesser-known cryptocurrencies offering extremely high interest rates. They tend to not have a great track record and are more susceptible to prices crashing. Sometimes that 20% interest rate is too good to be true.<\/p>\n<p>Before staking a certain cryptocurrency, ensure that you are aware of how long and how much crypto you must stake. For example, Solana that is staked must be locked for roughly two days. Each cryptocurrency has different minimum staking periods. It can be a helpless feeling seeing a cryptocurrency price plummet and not being able to sell.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"How_to_Start_Staking_Today\"><\/span>How to Start Staking Today<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The simplest and most secure way to start staking is with a wallet. Some of the most used wallets for staking are <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/atomicwallet.io\/\">Atomic Wallet<\/a> or <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.exodus.com\/\">Exodus<\/a>. These wallets have user-friendly interfaces that make staking easy. They support a broad range of the more prominent cryptocurrencies that can be staked. Both are available for iPhone or Android users, too.<\/p>\n<p>Exchanges can also be used. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/redirect.viglink.com\/?key=204a528a336ede4177fff0d84a044482&amp;u=https%3A%2F%2Fwww.coinbase.com%2Fstaking\">Coinbase<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.binance.com\/en\/staking\">Binance<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/redirect.viglink.com\/?key=204a528a336ede4177fff0d84a044482&amp;u=https%3A%2F%2Fwww.gemini.com%2Fearn\">Gemini<\/a>, and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/redirect.viglink.com\/?key=204a528a336ede4177fff0d84a044482&amp;u=https%3A%2F%2Fcrypto.com%2Fus%2Fearn\">Crypto.com<\/a> are some of the most popular exchanges for purchasing cryptocurrencies. Fortunately, they also offer users a variety of cryptocurrencies to stake as well. Just remember that even holdings staked on an exchange are at risk compared to wallets.<\/p>\n<p>Staking is a simple innovation that rewards users of proof-of-stake blockchains. Those interested in staking can earn passive income with minimal time and energy. Staking is a viable way to put your money to work while you wait for your favorite cryptocurrency\u2019s price to increase.<\/p>\n<p>As with everything cryptocurrency, just be sure to keep the risks in mind.<\/p>\n<\/div>\n<p><script>\n setTimeout(function(){\n  !function(f,b,e,v,n,t,s)\n  {if(f.fbq)return;n=f.fbq=function(){n.callMethod?\n  n.callMethod.apply(n,arguments):n.queue.push(arguments)};\n  if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';\n  n.queue=[];t=b.createElement(e);t.async=!0;\n  t.src=v;s=b.getElementsByTagName(e)[0];\n  s.parentNode.insertBefore(t,s) } (window, document,'script',\n  'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\n   fbq('init', '335401813750447');\n   fbq('track', 'PageView');\n  },3000);\n<\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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However, staking isn\u2019t a risk-free investment: There are some things to keep in mind. Here\u2019s how it works. Proof-of-Stake vs.\u00a0Proof-of-Work Proof-of-work cryptocurrencies, like Bitcoin, utilize mining. Those with the most computing power have an upper hand&#8230;<\/p>\n","protected":false},"author":1,"featured_media":436073,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2022\/04\/shutterstock_2083065739.png?height=200p&trim=2,2,2,2","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-436072","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/436072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=436072"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/436072\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/436073"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=436072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=436072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=436072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}