What is Staking of tokens?
Updated
Staking is a process of holding cryptocurrency tokens in a digital wallet to help support the network and earn rewards. When you stake your tokens, you are essentially helping to validate transactions and secure the blockchain network, and in return, you earn a passive income in the form of more tokens.
Here's how it works: when you stake your tokens, they are locked up in a smart contract for a specific amount of time. During this time, your tokens help validate transactions on the network, and you receive a reward for your contribution. The reward is usually a percentage of the total transaction fees on the network or a fixed percentage of new tokens created.
Staking is becoming increasingly popular among cryptocurrency investors because it offers a way to earn a passive income without having to actively trade or mine tokens. However, it's important to note that staking does come with risks, such as the possibility of losing your staked tokens due to network failures or attacks.
Overall, staking is a great way to earn passive income from your cryptocurrency holdings, but it's important to do your research and understand the risks involved before diving in.
