What is a Proof of Stake Crypto?

The first crypto that emerged in our world was Bitcoin. It stimulated the creation of other coins, and now there are hundreds of digital assets in the market. Like many other cryptos, BTC is based on the Proof-of-Work consensus protocol. That means receiving one coin happens through solving complex math tasks by high-tech equipment (miners). Mining is becoming expensive because it requires more advanced technologies and enormous electricity costs. There is another way to receive coins – crypto staking. What is it, and how it works?

Cryptocurrency Proof of Stake

Popular digital assets such as Solana and Cardano were developed based on the Proof-of-Stake protocol. This way of receiving coins is much more efficient:

  • it is available for anyone who has a computer and Internet connection;
  • it does not imply buying expensive equipment;
  • it does not take an enormous amount of electricity.

Proof of stake cryptocurrency opens many earning opportunities for its holders. Putting crypto assets in staking is equal to passive income. Let’s see how it works:

  • you pick any crypto proof of stake and lock it in staking;
  • when the staking period expires, you receive back your crypto with the addition of rewards in the form of the same coins.

It is important to note that not only proof of stake crypto can be used for staking – PoW crypto can also be staked with the use of crypto exchanges. For example, on WhiteBIT, you can take BTC, ETH and other PoS coins.

An important thing worth mentioning is that you can’t withdraw digital coins from staking before its locking period ends. Also, since the market is highly volatile, an incredible drop in an asset’s price can exceed your rewards, so consider this when picking a locking period.

For more information on staking, go to the WhiteBIT Blog. The platform offers staking programs starting from 10 to 360 days.