If you're getting into the crypto world, staking is a term you'll hear a lot about. Staking cryptocurrency is the process of committing your crypto assets to a blockchain network in order to support it and confirm transactions. This also allows users to earn rewards for their holdings.
Staking is available with cryptocurrencies that use the Proof of Stake consensus algorithms to process payments which is a more energy-efficient alternative to the original Proof of Work consensus. Proof of Work requires mining devices that use computing power and electricity to solve mathematical equations. You can read more about the differences between Proof of Stake and Proof of Work on the following link: Proof of Work vs Proof of Stake: What's The Difference?
Staking can be a great way to use your crypto to generate passive income, especially because some cryptocurrencies offer high-interest rates for staking. Before you get started, it's important to fully understand how crypto staking works.
You can use staking as a way to use your crypto to generate passive income. Some cryptocurrencies give out really high-interest rates for staking so that is why it’s important to understand how staking in crypto works.
Every time a block is added to the blockchain, new cryptocurrency coins are minted and distributed as staking rewards to that block's validator and usually, the rewards are most often the same type of coin that you would be staking. Some blockchains, on the other hand, use different coins for your rewards. The rewards can depend based on the amount of crypto you are staking.
It’s important to know that your coins are still in your possession when you stake them. You're essentially putting those coins to work for you, and you're free to unstake them whenever you prefer if you want to trade them after. It’s also important to know that the unstaking process may not be instant. With some cryptocurrencies, you're required to stake coins for a minimum amount of time. Usually, the period can be a minimum of fewer than 24 hours and some decentralized applications would require you to stake your coins and lock them for a certain time period which can be from 3 to 6 months, depending on the application.
XREX enables our users to earn rewards simply by staking stablecoins (such as USDT). Within a few taps or clicks, you can stake your preferred amount of stablecoins in any of the DeFi projects you like listed on the XREX platform.
The rewards you earn will be credited to you daily. Think of it as a savings account, but with rewards paid out every day. The larger the staked amount, the larger the daily rewards.
Click here if you’d like to learn more about how to stake on XREX: How to stake and earn rewards on XREX?
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