Some cryptocurrencies are POS (Proof of Stake) coins. In the proof of stake system, blocks are ‘forged’ or ‘minted’, not mined. This means that just by simply holding the coins or tokens in a wallet, you’ll be rewarded by validating transactions in the blockchain. Many of these cryptocurrencies already have their own wallets that you may download to begin staking.
This is one way to proof of stake but it is not the best unless you have a large holding of any particular coin or token. The best way is to stake with others in a pool. The rewards are higher and more frequent. Why lose coins every day when just by simply having them in a pool you’ll earn much more.
When you’re staking a coin, you will be rewarded with X amount of coins, like a fixed deposit, you will be paid an interest as a reward. The quantity of coins is defined by the coin developer and is presented in APR, Annual Percentage Rate. There are coins out there on the market that pay from 1% up to 10.000%.
Every coin has a maturity time. This ranges from hours to a few days before you can start staking.
Make sure you save this page and when you make a nice sum, please consider me for a Bitcoin donation to my address:
Thanks and happy staking!