Learning The Fundamentals Of Staking In Cryptocurrencys

Staking as the word implies is way to earn passive income without having to sell your digital assets.the analogy of staking in crypto is similar to that of you saving your money in the bank.your money doesn't juts stay in the bank,the bank normally lends out this money and in return gives you a portion of the interest earned although most of the time it is usually very small.the same idea is applicable to staking of your digital asset's.locking a coin up which allows you to participate in the running of the Blockchain.one fascinating nothing about staking in cryptos is that unlike the banks where you get a very small portion in return,in staking your coin the reward is usually very high.Staking has been part of cryptos for a long time and it becoming very a common way to make money without you having to trade your coin.

        HOW DOES STAKING IN CRYPTOS 
        WORKS

As we all know Blockchain is the technology behind cryptos and as such staking which could be done with any coin is done via proof of stake consensus mechanism.certain trustworthy people are verified on the Blockchain data.honesty is usually needed in making the stakers or validators to make them purchase and lock certain amount of their coin.In this process validators are rewarded for their patience and trusting the network and most of the time the reward is usually equivalent to the amount staked so the bigger the stake the higher the reward.any holder of a coin can participate in staking by delegating their coin to stake poll operators who does most of the job involve with validating transaction on the Blockchain.

     ARE THERE SPECIFIC 
CRYPTOCURRENCYS YOU CAN STAKE?

Well the truth is that any cryptos linked to Blockchain can be staked so in this case if a coin is not linked to a crypto then it cannot be staked.presently Ethereum is a is the most notable because of its ability to both mine and stake. There are other
Blockchains but for now Ethereum is the most notable because of its proof of stake system.
AS A STAKER,HOW DO YOU START
STAKING.
For any STAKER,staking is possible if you have bought the digital assets that you want to stake.then you can transfer the coin you bought to an account that allows or give room for staking.many big crypto exchange offers staking opportunities.one beauty about staking is that any coin you deposit for staking are still yours at the end of the staking period.

     WHAT ARE THE RISK INVOLVED IN 
      STAKING

One big risk that come with staking is that cryptos are very volatile which result in constant fluctuation in the price of cryptos.so there could be a drop in the price of a crypto when you bought it which could result in low return on investment.so.it always good to have along term vision when staking.another thing is that if it happens that a validator doesn't so his job as expected he might get penalized which could result to one missing out on reward.it could also.be hacked resulting in a total loss of funds.