What is Crypto Coins Staking, How Does It Work, Benefits & Why You Should Stake

What is Crypto Coins Staking, Benefits & Why You Should Stake


Nothing has been projected to have a bigger impact in the world since the Internet than cryptocurrency. Yeah, remember the Internet? If you’re old enough, you may have missed that opportunity. If not, your parents most likely did. Cryptocurrency is the new kid on the block; some even argue it’s the new internet.

What is Cryptocurrency?

Cryptocurrency is a digital currency or asset. It is a decentralized medium of exchange designed to compete with traditional banking system.  Each entity works as a distributed ledger technology, namely a blockchain. The first crypto; the father of all altcoins is Bitcoin. Invented in 2009 by Satoshi Nakamoto, Bitcoin was created as a result of the 2008 financial crisis.

With every new technology, individuals are always looking for ways to maximize their projects. There is a new scheme to do just that; crypto coins staking or Proof-of-Stake (PoS). Let’s take a deep dive into the world of crypto coins staking.

What is Crypto Coins Staking or Proof-of-Stake (PoS)?

Promoted as a consensus algorithm, Proof-of-Stake (POS) is a way earning more crypto coins for holding (hodl) them for a set period of time. The process is done by adding new blocks to the blockchain.

Every time a transaction is processed on the platform, stake coins are used to help validate the new transaction. New blocks are created, and then issued as rewards to stake holders.

Also Read: Most Popular & Profitable Cryptocurrency Coins to Stake & Why

The number of new minted or mined coins rewarded to a stake holder is based on the number of that coin staked by the holder. The more crypto coin a holder stakes, the higher the reward.

How Does Staking Work?

In a cryptocurrency network such as Bitcoin, mining node is used to process transactions randomly. The nodes work sequentially to solves a complex algorithm. The owners of of the nodes; the miners, sorely determine which transaction is validated first by the network.

In Proof of Staking (POS), the protocol works a little differently. The digital coin holders have some power. They get to randomly choose the miners from a pool. In order for a miner to be included in the pool for selection, s/he must stake a defined amount of that coin in a wallet.

Benefits of Staking Crypto Coins

Staking crypto is a guarantee and predictable way of making sure money. The more coins you stake and the longer you hold, the higher the income. Why? Because the longer you stake a particular coin, the more extra coins you accumulate. You can then reinvest your profit and gain compound interest.

Some of the most valuable benefits of staking are as follow:

No mining equipment – no need to purchase any equipment to product extra coins because no hardware is required.

Pre-programmed crypto wallets – no programming is involved either. All you need to transfer the coins to a designated wallet or wallets made available by the staking company. You simply need to create an account in order to obtain a wallet address. For example: staked.us.

No experience need – another great benefits of crypto coins staking is that you don’t need to have any experience with or knowledge of cryptocurrency to participate. No need to understand or have the ability to read complex charts. Video/written instructions are available online and it’s as easy as creating a social media account.

Profit in your sleep – the entire process is hands-off after you create the account and transfer the crypto assets to the wallet. Crypto coins staking firm such as staked.us is giving as high as 78.8% compound interest on some coins.

You’re in charge – you’re completed in charge of decision making, outside of the interest %. You decide how long you want to stake your coins, when to pull out profit or your entire coin stash.

Risks of Staking Crypto Coins

There is nothing in life without risks. I mean NOTHING. You risk your life getting in the car to go to work or even walking your dog down the street. The number of people getting hit by stray bullets in the United States or get hit by a moving object is staggering.

In order to be a vigilant and wise crypto investor, you need to understand the risks. What are some of the risks in crypto coins staking?

Crypto volatilitycryptocurrency prices goes up and down on a daily basis. It’s like a roller coaster. You may have purchased a coin you stake yesterday at a higher price it’s trading today.

Related: What Are the Best Crypto Staking Website / Company?

However, the opposite could also be true. A crypto coin you acquired at $.08 cents today can be trading at $1 next week. In the world of cryptocurrency, anything can happen.

In March 2010, the price of a single Bitcoin was $0.003. In December 17, 2017, it was a whopping $19,783.06. That’s a 9,000,000% increase.

Account lost or hacked – let’s face it, it has happened and will continue to happen. Accounts get hacked and coins disappeared from exchanges all the time.

This is the world of technology. Exchanges can do their best to prevent breaking-in, but they can’t keep every bad actors out.

Another risk is lost of private keys and/or ledger malfunction. Some firms or owners move the crypto coins to external ledgers. Ledgers are pieces of technology with firmware that need to be kept safe and updated. Sometimes they just stop working.


The evolution of Bitcoin and cryptocurrency is a world changing event. It is reported that Bitcoin is the profitable investment this decade; gaining more than 9,000,000% for its investors. No other investment in history has been that profitable.

You may have missed the bitcoin gold rush or did profit handsomely. Regardless, the next decade will be very interesting. 2020 is going to be epic. Crypto coins staking is just in its infancy and projected to grow in the billions in the next few years. Don’t miss the opportunity of a lifetime.

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