The term “staking coin” is often heard when we talk about crypto digital assets. In addition to staking, basically there are also terms mining and trading.
Staking itself is one of the popular ways to get passive income from the crypto market. The main advantage of staking is that you can get passive income in the form of rewards or interest from locked assets.
On the other hand, the next advantage is that this method can make it easier for you to diversify digital assets. To find out more about this term, see the explanation below.
What is Staking Coins?
In a simple sense, staking is the process of locking crypto assets in a wallet for a certain period of time, with the aim of making a profit.
However, usually this process is only implemented on alternative types of coins (Altcoins), such as KAVA, XEM, or ATOM whose liquidity is quite small.
Therefore, staking can be interpreted as a way that allows you to reap passive profits or passive income without having to do mining or trading activities on crypto assets.
In addition, the risk itself is quite small compared to mining or trading crypto assets.
Staking Coin Benefits
The next question is what are the benefits of staking?
Basically, this activity is useful as an alternative to earn passive/additional income without the need to use sophisticated tools. It can also be said that staking is an activity to mine bitcoins without the need for equipment such as computers.
Thus, you can deposit funds into a crypto wallet to secure and enhance the operational support of the blockchain network. More simply, the staking process is a step that can be done by locking cryptocurrencies to get rewards.
How Staking Coins Work
As explained above, staking is an activity that can be done directly through your crypto wallet. As for now, there are many exchanges that provide coin staking services. However, before you know more about staking coins, you should first understand what the PoS mechanism is.
It is important to know, Proof of Staking or PoS or is an algorithm that has a function to validate transactions according to distributed consensus. The validation is done by looking at the number of crypto assets. Delegated Proof of Stake (DPoS) is a fairly popular PoS algorithm.
By using this algorithm, it is possible for you to allocate the token balance that you have previously owned, then perform a voting system. This delegation will then manage the operating system of the blockchain. For your information, validator is a term for someone who stakes.
This validator can later earn profits when he successfully validates a transaction. For those of you who want to do staking coins, now you can also do it on Tokenomy. Staking crypto assets on the Tokenomy platform can be one way to easily develop crypto assets.
Tokenomy itself is a licensed digital asset investment platform that offers a number of crypto-based financial services.
Here, you can safely invest crypto assets to earn extra income. On the Tokenomy platform, there are also various choices of types of deposits according to your convenience, which are offered at competitive interest rates.
To note, there are currently several coins that can be staked on Tokenomy, namely ETH, DOT, XTZ, TRX, and ADA. The guidelines are as follows:
- Select the coin you want to stake according to the list available on Tokenomy, for example TEN token.
- You can buy TEN (TEN/IDR) on the Indodax market, then send it to your Tokenomy wallet.
- If you have arrived at Tokenomy then you need to enter Tokenomy Earn, then click the “Staking” tab. Select the TEN asset and then enter the amount you want to stake.
- You have successfully staked.
Well, from now on you can start stake coins on Tokenomy. Here, you will get rewards for crypto assets that have been staked in Tokenomy.
In addition, you also don’t have to worry about operational costs and think about technical issues to participate. As a user on Tokenomy, you can get staking rewards every day or week. Apart from that, there are also more options here and flexibility when staking.