What is STAKING - Just Intro

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What Is Staking?

Staking is when you lock crypto assets for a set period of time to help support the operation of a blockchain. In return for staking your crypto, you earn more cryptocurrency. Many blockchains use a proof of stake consensus mechanism.

With crypto staking, you earn funds by holding coins or tokens in your wallet. On Proof of Stake blockchains, rewards based on minting new coins are distributed to those who stake funds according to the size of their holdings.

You can also combine your holdings with the funds of other investors in a staking pool. When the pool earns payments, you receive a portion in proportion to the size of your contribution to the pool.

Your money never leaves your wallet and it is never put at risk, which makes staking crypto a very safe investment. However, you may not remove your funds during the staking period. Staking periods range from a day to a month or more.

You can find staking options at cryptocurrency exchange sites, or how to stake on the official site of the coin.

The amount you earn varies according to market conditions and which currency you are staking. Investors generally report the equivalent of annual percentage yields of 7% to 25%, which is comparable to what investors hope to earn in the stock market – without putting their holdings at risk. This makes staking a desirable source of passive income. PIVX has recently increased its block rewards for stakers, masternodes and the self-funded treasury.

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