“Bitcoin mining is already outdated.” We talk about a new way to earn #криптовалюта #стейкинг

Bank deposits have a serious competitor: cryptocurrency opens doors to returns in the tens, and sometimes hundreds of percent. But what if you are not a trader, not a miner, and do not want to risk in volatile markets? This is where staking comes into play – a simple way to “freeze” your coins and receive rewards for it.

What is staking and why is it better than a bank?

Staking is the process by which you “freeze” your crypto coins on the blockchain to support its operation. In return, the network pays you rewards in the form of additional tokens. This works on blockchains with a Proof-of-Stake (PoS) mechanism, where instead of energy-intensive mining (like in Bitcoin), security is provided by stakers (people who “freeze” their currency). Essentially, you become a “validator” of the network, voting for correct transactions. To simplify as much as possible – it works like a deposit, only instead of regular (fiat) money – crypto, and instead of a bank – a crypto exchange.

According to analysts, the volume of staking will exceed $100 billion by 2025, and this is not surprising.