You may have come across something about “Strike” or “Proof-of-Stake”. These concepts are important in the crypto world, because new projects are added daily from which you can stake your coins. But what does that actually mean? And how do you do it?
What is cryptocurrency cessation?
By staking cryptocurrency we mean the purchase of crypto coins to keep (hold) them in the wallet for a certain period of time. You can compare this with depositing money, as you used to do at the bank. You will receive a fixed interest at the end of the agreement.
In that respect, Proof-of-Stake (PoS) is a bit like the old banking. It is a matching algorithm for certain crypto coins. This algorithm creates new blocks, which are added to the blockchain. By staking, new blocks are created by a crypto user who is already holding some coins. In this way, a new block or another item on the platform is validated.
Anyone who has crypto can participate in the validation of blocks. You do this by using cryptocurrency. The more coins you own, the more power you have to validate transactions. Of course there is something in return: you will receive a certain amount back for validating cryptocurrency
This is how crypto strike works
All miners who contribute to the maintenance of the network via Proof-of-Stake must verify ownership of a number of cryptocurrencies. This makes you a kind of investor on the network. This allows miners to create new blocks. From that flow all accrued rewards, such as possibly newly created cryptocurrency.
Thanks to the financial incentive, it is often attractive to help build the blockchain infrastructure. Thanks to staking, all nodes (nodes) in the network remain fair. Suppose a node is trying to add a fraudulent deal to the block. Then this deal will be verified first. The node will then reject the fraudulent block. That way, users on the rogue network will no longer be able to validate new blocks and will not receive a reward.
That is the rationale behind staking: increasing the security of the network. Refusing a rogue node has consequences for the owner of the node on many PoS networks: all cryptocoins that have been made available will be lost. That way, rogue nodes have no chance of being connected to legitimate, secure networks.
Earn on strike
You can make money by staking cryptocurrency. Reward percentages depend on several factors. Which factors play a role differs per transaction and per currency. A calculator can be found for almost every staking coin. This can be used to calculate how much money you will get back for staking your own coins.
Calculating crypto works like this: suppose you participate in a strike for 3 months. You receive at least 20 percent in reductions. In six months you get a 50 percent return and on an annual basis you receive 100%
In principle, anyone can participate in the staking of coins. Usually the only condition is that you have a certain currency and that you have a wallet application. Sometimes the wallet has to remain open during the staking.
How can you stake bitcoin?
You can stake both bitcoin and various other cryptocurrencies. Not every crypto, although the range that is offered by the different platforms is increasing. Below we highlight two reliable platforms that offer to stake your crypto.
Binance strike explanation
In order to stake crypto with Binance, a number of steps must be taken. First of all, it is good to mention that not every cryptocurrency is available for strike at Binance. The holder of crypto coins can see for themselves what Binance’s stakes offer is and whether the blockchain technology for Proof-of-Stake is supported.
On strike at Binance
You start staking with Binance by logging into your account with Binance (or by creating an account first) and going to the “Earn” option. Here you can choose the option “Strike”. You will then see a screen with different products. You see for each product what the annual return will be and how much of the crypto you should at least own. If you meet the conditions, you can click “Deposit” or “Buy”. You then participate in the discontinuation of the chosen cryptocurrency.
With Binance, you stop participating in the staking program by selling or withdrawing the supported currency. There are no lock-up periods. There is, however, a waiting period of 24 hours before the balances are settled in the daily snapshots. Some well-known currencies that you can stake are NEO, Tezos, Dash, Chainlink, Ethereum and Vechain.
Strike crypto at Coinbase
Anyone who has an account with Coinbase and already has a certain coin in their wallet at Coinbase for a certain period of time can start staking. You do this by logging in to Coinbase and going to the settings. Click on “Financial Service”. From this screen you can click on the Staking Rewards icon. You can then sign up to stake a coin.
This also works on the smartphone via the iOS app or Android app. Again, go to the settings of the app and select “Financial Services”. A Staking Rewards icon will become available, which you can tap to sign up.
Usually you need to have at least 1 coin of the chosen currency at Coinbase to get started. This must be stored in your wallet for a certain period of time. You can also opt-out to leave the strike program via the same steps mentioned above.