STAKING

Best Crypto Staking Platforms | The Motley Fool

Staking is when you commit your crypto assets to a blockchain to support the network and validate transactions. In return, you receive crypto rewards.

This is only an option with cryptocurrencies that confirm transactions using a model called proof of stake. To process transactions, these cryptocurrencies choose validators who have staked their own crypto. The validator checks a block of transactions, adds it to the blockchain, and receives a staking reward for their contribution. Examples of cryptocurrencies that use proof of stake include:

You can stake crypto on your own without a staking service, but it’s not quite as easy. You’ll need to store your crypto in a blockchain wallet, and you’ll also likely need to join a staking pool with other crypto investors. Staking platforms, on the other hand, allow you to stake your crypto in a few clicks. This is also a big advantage if you’re not comfortable storing your cryptocurrency.

It’s worth mentioning that “staking” is often used as a catch-all to cover any way you earn rewards on your crypto. For example, some people refer to crypto lending programs as staking. They’re not, but crypto lending can also be an effective way to earn crypto rewards, so we’ve included lending programs on our list of staking platforms.

READ MORE: What Is Staking in Crypto?

Are there fees for crypto staking?

Cryptocurrency staking fees depend on the staking method and cryptocurrency you choose. Many platforms don’t charge any staking fees, but there are some that do. You can find this information on the platform’s fees page.

If you decide to stake crypto without using a platform, you will most likely need to join a staking pool. These pools are made up of groups of investors who pool their crypto for a better chance of earning rewards. Most staking pools charge a pool fee. This amount can vary, but anywhere from 2% to 5% is common.


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Traciwininger
Author: Traciwininger

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