Staking is a term widely used in the crypto world. While for some it is quite a simple process, many others still feel vaguely about it. In a nutshell, crypto staking is a process to earn passive income that happens when you hold onto your underlying digital assets, as you actively take part in a blockchain transaction validation.
Generally speaking, crypto staking puts your cryptocurrencies in a hibernation mode on an exchange or staking pool that will help you earn rewards after a specific lockup period.
The process allows you to earn a cryptocurrency as a reward for using your existing holdings to participate in a consensus mechanism called Proof-of-Stake, which is a process of ensuring that all transactions are verified and secured on an underlying blockchain.
Proof-of-Stake, also better known as PoS, is a cryptocurrency consensus mechanism for processing transactions and creating new blocks in a blockchain. Created for increased speed and enhanced efficiency, Proof-of-Stake reduces the costs involved by involving people to validate the transactions. These people are those who have literally invested in the blockchain through staking.
The most convenient part about staking is that it takes just a minimum-required balance of a specific cryptocurrency and users can validate transactions and earn staking rewards on these blockchains.
The network, then, chooses validators based on the amount of their stake, as well as the length of period they have held their assets for. Hence, those who are most invested in the process will get rewarded.
In case transactions are noted to be invalid in a new block, users can have a certain amount of their stake burned by the network. This process is known as a slashing event.
Staking on LYOTRADE
LYOTRADE is a cryptocurrency exchange amongst the products of the LYOPAY ecosystem. It is a centralized cryptocurrency exchange dedicated to providing a safe and convenient platform for cryptocurrency trading.
LYOTRADE is regulated and thoroughly follow anti-money laundering (AML) and Know Your Customer (KYC) procedures.
LYOTRADE Staking service has been named LYO Earn, where users can access more staking pools and have the option to choose various locking periods for annualized returns.
LYOTRADE makes the process of staking easy and beneficial. You can now generate tokens by locking up LYO and USDT for transaction verification. For this, all you need to do is select a Pool: each has a lock period and a reward amount. LYO Credit (LYO) staking up to 50% yearly, and Tether (USDT) up to 24% yearly.
Locked Staking on LYOTRADE
LYOTRADE Locked Staking provides an easy way for Holders to stake and earn rewards.
Locked staking refers to the process of locking your digital assets on a Proof of Stake blockchain for a certain period in order to earn rewards. This means that during the staking period, your cryptocurrencies will be locked, without you having any access to your coins until the staking period is over.
In a way, you could think of holding your coins on LYOTRADE as adding them to a staking pool. The most important point here is that there are no fees included, and you can also enjoy all the other benefits that holding your coins on LYOTRADE brings.
The only thing you are required to do is hold your PoS coins on LYOTRADE, and all the technical requirements will be taken care of for you. The staking rewards are usually distributed weekly from the day of the interest start date.
Inflation and Rewards
The LYO Credit token earns rewards through inflation, or community rewards, versus staking. With inflation, new tokens are added to the network at a rate determined by the protocol, and those tokens are then distributed to holders as rewards.
Benefits of LYOTRADE staking
One of the main benefits of staking on LYO Earn is that you receive generous token rewards. Staking USDT and LYO allow users to earn as much as 36% to 50% per year.
Additionally, staking helps in validating the transactions that take place and helps boost the network’s security and efficiency.
Do you feel you are ready? Start staking at LYOTRADE and earn rewards: https://lyotrade.com/
Disclaimer: This is a paid post and should not be treated as news/advice.
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