What is staking for cryptocurrencies?
You may have heard that there is a special analog for fixed-income assets in the bitcoin world. You "stake" (put aside) a batch of cryptocurrency coins to earn a proportion of them, rather than receiving interest payments in US dollars. This is the main purpose of cryptocurrency staking. So what's the deal, how does it operate, and what are the benefits and drawbacks of securing your money for "yield"?
Read More: Ceti Ai
What is staking for cryptocurrencies?
The process of tying your digital tokens to a blockchain network in order to get rewards—typically a portion of the staked tokens—is known as crypto staking. Token holders also have the ability to take part in proof-of-stake blockchains by staking bitcoin.
Here's an easy illustration: Let's imagine a blockchain network give...