What is staking ?

Hello Bittimers,

Trading is not the only way to earn passive income. You can also profit in the crypto industry through staking.

So, what is staking?

Staking is an activity in blockchain that uses the Proof of Stake consensus where you actively participate in validating transactions and receive rewards from this activity.

How does staking work?

Staking requires validators or "stakers" to lock their coins/tokens and will be randomly selected by the protocol at regular intervals to create new blocks.

If the validator successfully validates transactions and maintains network security, they will receive rewards in the form of tokens/coins.

How to calculate staking rewards?

Every blockchain has different ways to calculate staking rewards. Some use methods based on a block-by-block basis. There are several factors to consider in calculating staking rewards, including:

- The amount of tokens/coins staked
- How long the validator is active in staking
- The total amount of coins staked in the network
- Token inflation value

These rewards are distributed to validators, and as the coin supply increases, it encourages users to spend their coins instead of hoarding them.

How to stake crypto assets?

Staking can be done in three ways. You can choose one according to your comfort level:

1. Solo Staking: Generally for experienced individuals in the crypto asset world, especially staking. Solo staking is relatively complex.

2. Staking Pool: The concept of a staking pool involves a group of asset holders who come together to combine their resources. The goal is to increase the chances of block validation and receive rewards. The complexity of staking in a pool is lower compared to solo staking.

3. Staking on Exchanges: For beginners, exchanges can be the perfect choice. The method is very easy to execute.

Staking on exchanges is simple:

- First, choose a crypto exchange for staking. Make sure the chosen exchange offers staking features and is regulated by Bappebti.
- After selecting the exchange, register, verify, choose the coin, and make a deposit.
- Now you can start staking and then receive the rewards. Easy, isn't it?

The above steps are recommended staking methods for beginners on exchanges. Besides being easy, this method is also low-risk.

However, you still need to consider the credibility of the crypto wallet you choose. Ensure that the place where you buy the assets is secure, reliable, and regulated by Bappebti.

So, Bittimers, do you know what staking is now?

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Happy staking!