📦Staking benefits
Last updated
Last updated
Staking is an easy way to earn rewards on your crypto whilst putting your digital assets to good use to help stabilize the network. The blockchain will use your crypto to ensure all transactions are verified and secured, called ‘Proof of Stake’, and you will receive more crypto for doing so.
There are many benefits and rewards to staking. Here are some of the most prominent:
You can earn additional tokens. This is the big one — increasing your individual stash of tokens or coins. Stakers aren't guaranteed anything, as the process of forging new blocks and doling out rewards is randomized, but stakers do "earn interest," so to speak, by staking.
Staking is less resource-intensive. Compared to crypto mining, staking consumes far fewer resources, which may help you sleep at night. Plus, staking is "servicing the ecosystem by making tokens more rare," says DeCicco, which can increase the value of your holdings.
Stakers get voting rights and participation. As mentioned, stakers are more entrenched in a specific ecosystem or blockchain network, which may give them more clout as to what happens next with a specific cryptocurrency. "It's similar to owning stock in a company. By staking, you're getting voting rights," says Welch.
Staking can be an easy way to grow holdings. For investors using an exchange, staking can be as easy as toggling a few switches to set things up. From there, they can watch their holdings grow. It's a hands-off, easy way to keep investing, while putting in very little effort.
