Cryptocurrency staking is a popular option for passive earnings on digital assets. To receive income, you need to store crypto money in your account. The presence of coins in the wallet allows the investor to join the project network to ensure the operability of his blockchain. As gratitude for such work, the user receives a reward.
How Does This Process Work?
All staking cryptocurrencies work based on a proof-of-stake mining algorithm. This approach to the extraction of digital assets works in MKR staking. It is more environmentally friendly than the alternatives since a large amount of computing equipment does not need to be connected to the asset network to operate.
In terms of PoS mining, it looks like this:
- The network analyzes the volume of assets in user accounts. Whoever has more of them will most likely receive the right to record information about transactions in the blockchain. For this, the computing power of the user’s equipment will be used.
- In return for such work, the user will receive an award in the form of the project’s cryptocurrency.
- The process is fully automated and does not require any participation from the coins’ owner.
Best Cryptocurrencies for Staking
Among the best options available on the market are the following:
- Alorgand. The maximum profitability is 6%. The system distributes rewards approximately every 9 minutes and does not charge a commission from rewards transferred to the user’s account.
- Cardano. You can stake by participating in a pool or launching your pool. In this case, the profit will be up to 7%. You need to buy project tokens and place them in the pool to start earning.
- Polkadot. The maximum available reward for stakers is 16%. To get started, you have to buy project tokens — DOT. After that, they will need to be placed in a wallet where it is possible to stake crypto.
- Tezos. It offers returns of up to 6%. To earn money, you have to buy coins and then transfer them to a wallet or platform that offers to stake digital assets.
How to Start Making Money on Cryptocurrency Staking
The instruction is simple:
- Choose a cryptocurrency you are interested in and make sure that the project is based on PoS.
- Find a platform or wallet that allows you to stake the digital asset of your interest.
- Buy the chosen cryptocurrency. After purchasing the coin, it must be placed on a platform or a wallet where it will be staked.
Payments to the PoS miners of the system are made once a month. Most platforms and wallets have instructions on how to work with each specific coin.
Cryptocurrency staking is one of the options for passive earnings on digital assets. Anyone can use it. Before you start this process, you have to study the project’s features, conditions, and information about the available level of profitability. It is also crucial to find a platform for the job.