You’ve probably heard of staking and crypto based on evidence issue ( proof of stake ). This consensus method is known for its inclusive aspect. In fact, unlike the proof of work of Bitcoin, there is no need for advanced equipment to validate transactions. You just have to invest funds in cryptocurrency!
This is a promotional article written in collaboration with Just Mining
However, installing your validator node yourself can be complex . And the minimum amount of funds to put into play can be a drag. So, how do you participate in the staking of your favorite crypto if you don’t have the soul of a technician or a lot of funds? There is a simple solution : staking services . In this article, we will present the solutions offered by Just Mining .
Reminder: what is staking ?
The staking is a mechanism to validate the transactions of a distributed network . It is based on the stake of a certain amount of cryptocurrency.
The nodes of the network ( stakers ) wishing to participate in this validation process place their funds in escrow . The protocol takes care of keeping them locked for a given period. The nodes will then carry out their work of validating the blocks . In exchange, they will be rewarded (the rules vary depending on the protocol). To avoid cheating, they are financially punished for bad behavior.
The advantage of staking and proof of stake is its low energy cost . Like the Nakamoto consensus, it is a system of financial incentives securing a distributed network. But here, there is no need to embark on a race for computing power. The nodes wishing to participate put their funds directly into play. The protocol then takes care of selecting them and rewarding them. Of course, the rewards are proportional to the amount of cryptocurrency put into play.
The staking , passive income crypto
The staking so lets generate passive income cryptomonnaie . Anyone, if they have the required funds, can in theory set up a node and participate in consensus. There is, however, an important technical barrier to entry! Indeed, not all cryptocurrency holders are necessarily a developer. And all distributed networks operate under different rules.
The minimum amount of crypto to lock therefore varies depending on the protocol. For example, on Ethereum 2.0, it will be 32 ETH, or nearly 10,000 euros at the current price.
The staking can be seen as an investment crypto , providing predictable performance . Be careful, this interest rate is defined by the protocol, but the price of the crypto is however subject to the laws of the free market.
Interesting, isn’t it? The game obviously consists of staking the most profitable cryptos . Thus, we regularly see double-digit returns .
Those who try staking for purely speculative purposes therefore have an interest in going through service providers . He has no technical knowledge to have, no server to configure, no node to synchronize. In addition, there is no financial minimum when going through a staking service provider . User funds are collected in cash pools managed by the company.