Join date: Sep 29, 2022


What is staking

Cryptocurrency staking is earning money by deliberately holding coins in an account in order to ensure the stability of the project network. Users who work according to this scheme are called stakers.

There are many ways to make money in the digital asset market, and staking is one of them. For the process to be effective, you need to choose a good platform for work such as redot ethereum staking

Staking vs mining and why staking is better than mining

You can stake cryptocurrencies that work on the proof-of-stake (PoS) algorithm. The name can be translated as "proof of share." The scheme has become an alternative to classical mining - the extraction of coins for solving network problems by connecting computing equipment to the cryptocurrency network, for example, ASICs. This is how the most capitalized cryptocurrency, Bitcoin (BTC), works. The coin mining algorithm is called proof-of-work (PoW). According to its laws, the more computing power, the higher the income.

Bitcoin and many other PoW cryptocurrencies can independently adjust the difficulty of mining. During periods when there are a lot of miners, the complexity of mining increases. Changes force market participants to increase the amount of computing power. The more equipment is connected to the mining of bitcoin and other PoW cryptocurrencies, the greater the environmental damage.

What else you need to know about staking

Staking can be divided into two categories: do-it-yourself and delegation. The first option involves launching your own node - a network node that will process network tasks. To create it, you will need special knowledge and skills, as well as a capital of 32 ETH. Node owners are called validators.

Working through delegation means transferring operations for processing to nodes for a percentage of income. This method is simpler, but the profit from it will be less.


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