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What is staking?

if you are new to crypto, here is a short explanation of staking, just to understand better this concept.

What is staking?

You can “stake” some of your cryptocurrency holdings in order to earn a percentage-rate reward over time, provided that the cryptocurrency you possess permits it- as $IUX does.

Your cryptocurrency generates rewards while being staked because the blockchain uses it. Staking-enabled cryptocurrencies use a “consensus technique” called Proof of Stake to guarantee that all transactions are secure and confirmed without the involvement of a bank or payment processor. If you decide to stake your cryptocurrency, it joins that operation.

What benefits does staking offer?

Many long-term cryptocurrency owners view staking as a means to put their holdings to use by producing rewards rather than letting them sit dormant in their wallets.

Staking also helps the blockchain projects you support by enhancing their effectiveness and security. You can increase the blockchain’s security and transaction processing capacity by staking some of your funds.

What threats are when staking?

Staking frequently necessitates a lockup or “vesting” period during which your cryptocurrency cannot be transferred. This can be a disadvantage because even if prices change, you won’t be able to swap staked tokens during this time. It is crucial to familiarize yourself with the individual staking standards and regulations for each project you are considering participating in before staking.