What Is Cryptocurrency Staking?
By definition, staking cryptocurrency is the act of using your existing crypto portfolio, by locking it up for a certain period of time, to receive rewards or interest. Staking is similar to receiving interest for having money in a regular savings account, the bank will pay you for holding your money with them. Although a bit more complicated, you are essentially being rewarded for holding a certain cryptocurrency for either a set amount of time where you will be unable to withdraw your staked crypto. However, there are some staking schemes which allow you to quickly unbind your staked crypto, but there will be some consequences. We will dive deeper into the different types of crypto staking while looking at the reasons behind staking in cryptocurrency.
Like anything in investing or cryptocurrency, there will be some element of risk versus reward. Let’s take a look at why more and more crypto investors are delving into staking as an alternative to simply HODLing cryptocurrency and how the technology behind your interest-earning cryptocurrency actually works.
The Technology Behind Staking
When you provide cryptocurrency to be staked, you are adding to a staking
