Coin staking could become the next big thing in 2020 as investors explore new opportunities to gain rewards from locking up their coins.
According to U Today, the switch from the Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus means individuals can validate coin transactions much more easily, opening an opportunity for coin staking.
Coin staking — locking up coins to verify transactions using the PoS consensus — can help stakers gain rewards from the practice. As the coins are locked up or staked, users will not be able to transfer the coins but can receive rewards from staking them.
First of all, to make an investment, users will need to select their staking pool, which will serve as a type of custody to ensure the coins are staked. This step will also control how investors will be rewarded.
There are numerous options on where to stake coins, including exchanges, wallets, staking providers and Binance.
The most obvious place to stake coins is with exchanges, where toolkits are usually on offer to let users make deposits and withdrawals or exchange their coins before staking. Exchanges would typically charge fees of up to 15% for their services.
Meanwhile, crypto wallets often have staking services built in, with Trust Wallet, Huobi Wallet, and Hashquark among the leading players in the crypto community. However, fees charged by wallets can be as high as 30%.
On the other hand, though staking providers are available, the type of coins offered for staking are typically smaller compared to wallets, with certain providers charging fees of up to 50%.
Finally, Binance also offers a staking ecosystem where investors can stake 14 types of coins including Atom, Tezos and Tron.
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