Outlook Money
It is the process by which the blockchain networks secure and authenticate transactions.
1. Purchase the Required Cryptocurrency- For one to start staking, he/she needs to buy the cryptocurrency that the blockchain network requires for staking.
Once the crypto is protected, it must be kept in a wallet that supports staking.
In staking, locking crypto is in place of a predetermined amount of time. This locked-up crypto serves as collateral that ensures that one is committed to respecting the network's protocol.
Stakers receive rewards for helping to secure the blockchain. These rewards are in the form of transaction fees or new tokens minted by the network.
It is important for investors that before choosing to stake, they should think about important factors like comparing the staking benefits with financial goals as returns vary.
It is also important to assess the risk that can come while staking provides passive income.