Staking is one of the most common and effective ways to make | $Sun Rays | Investments
Staking is one of the most common and effective ways to make passive earnings on cryptocurrency. It is increasingly being chosen by both institutional and retail investors.
The essence of staking boils down to the fact that the user stores their coins on a wallet in a decentralized network. Moreover, in most cases, cryptocurrency is mined by one of two algorithms:
- PoS. Proof of Stake is the basic staking algorithm.
- DPoS. Delegated proof of stake. In this case, stake holders by voting can delegate their work to the so-called "delegates".
There are several more variations, but the principle of their work is always the same. These are algorithms for proof of stake - stakes.
In most cases, investors generate income by placing coins on a special, separate cryptocurrency wallet. Sometimes digital funds are added to the total or delegated to the staking pool. There are also exchanges that perform all the necessary actions for the investor.
But in any case, passive income in the form of staking is available only to coin holders working on the corresponding algorithm. Examples include Tezos, Cosmos, TRON, EOS and others. There is also information that the creators of the Ethereum blockchain plan to transfer it to the PoS algorithm as well.
With this form of investment, the owner of the cryptocurrency ensures the performance of the necessary network functions (checking transactions and balances). Such placement of coins ensures the operability of the blockchain and allows the investor to receive a reward for it. That is, users keep the network running and are paid digital money to do so.
Another tangible plus is the ability to completely replace complex mining using the PoW algorithm. Thanks to staking, users can generate income from cryptocurrency without mining it. This means that you do not have to spend money on the purchase of equipment to provide significant computing power.
Income when choosing staking can be different - it all depends on the coin. On average, investors receive from 30 to 50% per annum. You can find values at the level of 100% or more.
Did you know that a third of $Sun Rays returns comes from competent staking?
