Staking and Proof-of-Stake are two concepts that you often encounter in the world of Cryptocurrency. Every day new projects come out where you can stake your coins.
Staking crypto means holding Crypto to strengthen and support the network.
What is Staking? Staking is the purchase of Cryptocurrency and hold them in a Cryptocurrency wallet for a certain period of time. This is comparable to a fixed deposit in the world of fiat currency with a fixed rate at the end of the agreed time in the contract.
This brings us to the concept of Proof-of-Stake, also abbreviated as PoS. It is an algorithm for cryptocurrencies, creating new blocks that are added to the blockchain. These blocks are basically made by someone already holding some crypto. It helps to validate a new block or something else on the platform.
You can help validate blocks yourself. You do this by holding Cryptocurrency. The more cryptocurrency you hold, the more power you have to validate transactions. Likewise, the longer you keep the Cryptocurrencies in a wallet, the higher the number of coins you will receive when staking.
How much do you earn from staking? Staking reward rates depend on multiple factors. Before you start staking, you can calculate how much coins you will get in return. There are calculators for almost all PoS coins with which you can calculate it. However, each crypto coin has its own rules and rates. Some Examples: If you stake a certain coin for 3 months, you will receive at least 20% in return. In six months you get 50% and for a year you receive 100% return.
There are different rules for staking coins. Often all you have to do is buy a certain Cryptocurrency, get a wallet and sometimes keep it open.
We have made List of coins you can stake:
Loom Network (LOOM)
Keep an eye on Nimiq (NIM). This cryptocurrency will be switching from Proof of Work to Proof of Stake. It has high staking rewards and is expecting to release Proof of Stake Q1 2021.
We rated this 3 out 5 because you have to use your own money to buy these cryptocurrencies before you can stake. Also the income and value of your investment depends on the price of each coin/token. So it's a great way to create another stream of income but is also risky.