Staking Cryptocurrencies and Securypto Blockchain

Neyamul HadiBlog


W
ho doesn’t love passive income? Of course everyone. People love to deposit their money in the bank for a certain period and earn rewards for holding from the bank. In the cryptocurrency world, there are also some good ways to earn rewards passively. Mining and Staking cryptocurrency is two popular ways to earn rewards passively. Today, in this article, we are going to talk about Staking.

Let’s have a look at our contents:

What is Staking in Cryptocurrency?

How does staking work?

What are the advantages of Staking?

How to stake SCU coin?


What is Staking in Cryptocurrency?

Cryptocurrency Staking is a great way where we can earn passive income from cryptocurrencies. The staking process is very similar to how traditional fixed deposit investment accounts works in a bank, the longer your staking time, the higher the reward you would earn. In Cryptocurrency, staking is the act of holding cryptocurrency in your wallet for a specific period, then earning rewards as a result of that. You’ll receive rewards by holding the cryptocurrency. The longer the staking duration, the higher the return you will receive.

To Stake a cryptocurrency, you will not have to undertake too much action. As long as your favorite cryptocurrency supports proof-of-stake (PoS) and your wallet is connected to the network and running, you will be eligible for staking rewards sooner or later. There is one condition that your wallet needs to be online at all times to receive the stake rewards. Cryptocurrencies that are based on PoS and SPoS consensus mechanism, support staking. Some example of staking cryptocurrencies are NEO, PIVX, NPXS, VSYS, SCU, etc.

How does staking work?

Staking is used as a way of validating transactions on a blockchain and Cryptocurrencies that support staking are also called Proof of Stake (PoS) coins. It is similar to what mining represents in the proof of work (PoW) protocol. Proof of Stake (PoS) is method used to secure a blockchain network and validate the transactions on it. Without it the blockchain wouldn’t be able to function. With PoS, the owners of the cryptocurrencies running on that blockchain stakes their coins and those coins are used to validate transactions and create new blocks. Users that stake their coins put them into a wallet that is connected to the blockchain. This wallet needs to be connected to the blockchain all times.

The next validator in a PoS system is usually chosen in a random process which is heavily influenced by the number of coins a user is holding at that particular time or in some cases, the length of time the user has been keeping the cryptocurrency. The higher the coins you hold in your account, the higher the chances that you would take part in a transaction validation process.

What are the advantages of Staking?

There are some definite advantages to PoS cryptocurrencies and the methods used to keep the blockchain operating compared to traditional PoW. Here are some advantages:

Less energy consumption: The big issue when it comes to mining Bitcoin and other cryptocurrencies is the amount of energy used to keep the hardware mining machines operating. PoS cryptocurrencies are far more energy efficient in comparison to Proof of Work.

Environment-friendly: Proof of stake is environmentally friendly and more energy efficient than a proof of work mining used in Bitcoin.

Cheaper equipment: No need to invest in expensive mining rigs as most of the staking can be done by keeping your wallet online or by using a hardware wallet or by a cheap Raspberry Pi.

Decreased risk of 51% attack:  Potentially this factor comes to life for cryptocurrencies like Bitcoin, Ethereum and other major coins. As the concept of someone getting hold of more than 50% of all of Ethereum’s cryptocurrencies seems near impossible.

How to stake SCU coin?

Staking SCU coin is very easy. You don’t need to know how PoS works. You need to keep your wallet online for 24/7. When your wallet is online and connected to the Securypto Blockchain, it will validate transactions and create new blocks. The higher amount of SCU coins you hold in your account, the higher the chances that you would take part in a transaction validation process and it will lead you to earn more money. Currently, Securypto is offering 30% rewards from staking. You can buy SCU coins here.

Author
Neyamul Hadi