Top Staking Coins
Staking is a way to put your crypto to work and earn rewards on it.
With cryptocurrencies that use the proof-of-stake model, staking is how new transactions are added to the blockchain. Participants pledge their coins to the cryptocurrency protocol. From those participants, the protocol chooses validators to confirm blocks of transactions. The more coins you pledge, the more likely you are to be chosen.
Every time a block is added to the blockchain, new cryptocurrency coins are minted and distributed as staking rewards to that block’s validator. The rewards are usually the same cryptocurrency that participants are staking, although some blockchains use a different type of cryptocurrency for rewards.
If you want to stake crypto, you need to own a cryptocurrency that uses the proof-of-stake model. Then you can choose the amount you want to stake. You can do this through many popular cryptocurrency exchanges.
Your coins are still in your possession when you stake them. You’re essentially putting them to work, and you’re free to unstake them later if you want to trade them. The unstaking process may not be immediate, and, with some cryptocurrencies, you’re required to stake coins for a minimum amount of time.
Staking isn’t an option with all types of cryptocurrency. Many cryptos use the proof-of-work model to add blocks to their blockchains. The problem with proof of work is that it requires considerable computing power. That has led to significant energy usage from cryptocurrencies that use proof of work. Bitcoin (CRYPTO: BTC) in particular has been criticized due to environmental concerns.
Proof of stake, on the other hand, doesn’t require nearly as much energy. This also makes it a more scalable option that can handle greater numbers of transactions.
Source: Fool.com
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