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What is Staking?
Staking is a popular way to earn rewards with crypto investments. It offers crypto holders a way of putting their digital assets to work and earning rewards without trading. As the term implies, it only applies to tokens that employ the Proof of Stake (PoS) consensus algorithm, such as EOS, Tezos, Cosmos and others.
Traditional financial institutions like banks and credit unions pay interest because they use clients’ funds for things like loans and other investments.
In crypto staking, customers’ holdings are put to use as well. The term “staking” refers to the Proof of Stake (PoS) algorithm consensus, in which deposited coins are used to verify transactions on the blockchain without a bank or payment processor in the middle, thus ensuring decentralisation.
In other words, crypto staking is a way to generate income on long-term investments without worrying about short-term fluctuations in price.
The Bitfinex soft-staking program allows users to easily generate rewards by simply holding digital tokens on Bitfinex. Staking rewards can be as high as 10%* per year for supported Digital Tokens. Please read the FAQs for details.
The post Find Out All About Staking appeared first on Bitfinex blog.
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