What is Staking coins?
All blockchains have one thing in common: transactions need to get validated. Bitcoin for example does this in a process called mining which is known to use a lot of electricity (Proof-of-Work). But there are also other forms of validation often referred to as the consensus mechanism. Proof-of-Stake (PoS) is one such consensus mechanism that can come in different variations and hybrid models. For simplicity reasons, we will just refer to all of these as staking. Coin staking gives currency holders some decision power on the network. By staking coins, you gain the ability to vote and generate an income. This is quite similar to how someone would receive interest for holding money in a bank account or giving it to the bank to invest.
Always Do Your Own Research
Choosing the right coin to stake, is both a numbers game and a gut feeling. If you choose to begin staking, definitely begin your research on minimum amounts, staking rewards, and particular staking protocols. Always remember to pick a project that resonates with you and one that you expect will be around far into the future. After all, by staking, you’re helping to make that project become a reality.