Staking on bit4you trading platform
The bit4you trading platform is pleased to announce that staking is now available! One of the main advantages of crypto-currency staking is that no expensive equipment or energy is required. Thus, everyone can take advantage of the new features that blockchain technologies offer. In this article, you will find out what staking is and how to get additional returns.
What is staking?
Staking is a method of passively earning cryptocurrencies that are based on the Proof-of-Stake (PoS) algorithm. In some way, staking corresponds to a bank deposit with a fixed interest rate. Some validators get rewards for securing blockchain transactions and managing the network. For now, staking is implemented for currencies with Proof-of-Stake (PoS) consensus mechanism. In turn, this algorithm presupposes validating transactions, producing new blockchain blocks, and generating cryptocurrency. In PoS blockchains, validators are in charge of all of these operations. In the case of PoS-staking, the bigger the validator’s balance, the more likely it is to be selected to confirm a new block and be paid.
With a staking pool, everyone may connect to one of the validators and provide it even a small amount of crypto in exchange for its services, collecting revenue after a small fee. The PoS method permits the same technique, except coins instead of CPUs or GPU are gathered in a single pool. Thus, the validator can participate in transaction validation by the network. This requires a data center that is constantly available to perform the necessary computations.
First of all, a validator begins solo-staking by reserving a large amount of cryptocurrency. It is feasible for each validator to launch a service and attract more coins for staking. As a result, both the prize and the commission revenue are growing. However, any user can join the pool by transferring his coins to the validator’s address. The minimum staking amount and commission % are predetermined. The PoS algorithm operates in the following way: the overall amount of staking grows, so does the yearly percentage of the reward. At the same time, emissions are decreasing.
Is staking profitable in 2022?
To avoid losing potential profits, it is vital to select a reliable crypto asset and stick to a timed plan. It is worth noting that the PoS algorithm Staking is built on the PoS principle, which protects against many of the dangers inherent with other crypto market instruments. For example, the present economic condition and other external factors do not influence payouts. Since the PoS algorithm is quite secure, frequent payouts reduce operational risks. Moreover, use a specific calculator to determine the potential earnings. This will help you to determine the profitability of staking in each scenario. When it comes to the expectations from staking in 2022, we can predict that there will most likely be a large number of crypto projects that use the Proof-of-Stake algorithm in the future.
Test out a new way to get the crypto rewards without expensive equipment and costs with bit4you. Visit our special education section Academy to learn more about how the staking works on the platform. However, do not hesitate to visit the Cryptocurrencies section on Academy to discover what coins are available for staking from the list of assets. In addition, join the bit4you community via Instagram, Facebook, Twitter, Medium blog, and Linkedin to get the freshest content about the cryptocurrency world and keep in touch. Trade and exchange with bit4you!
Valentyna Bereza, Team bit4you.