All the things you wanted to know about Bitcoin and the other cryptocurrencies

What Is Staking Cryptocurrencies?


Staking means keeping certain funds in a chosen cryptocurrency wallet to hold all operations on the blockchain. Essentially, it consists of locking a certain number of digital coins in a wallet, which allows holders to get additional rewards. Coinbase is the best place to stake stablecoins in 2022. Crypto owners can also use Kraken exchange to stake Ethereum, Dogecoin, and Litecoin. Please, scroll down to get more details on staking cryptocurrencies. 

How does staking cryptocurrencies work?

Staking is a process of getting additional revenue from the storage of crypto funds. This process uses the unique proof-of-stake algorithm that proves the possession. This is one of the ways to guard the blockchain against any third-party intrusion. A crypto holder simply stores tokens on the wallet and contributes to the blockchain’s proper work.

Why can some cryptocurrencies be staked and others cannot?

Not all digital coins provide a staking option. Only those cryptos that operate on a proof-of-stake model can be staked and bring you a good extra income. Hence, you can consider staking such digital coins as ICON, Cosmos, Polygon, Theta, and many others. 

Is it possible to stake Ethereum?

In 2022, it became possible to stake Ethereum  A large-scale update called The Merge was made for the overall Ethereum network. The goal of the improvement was to make the platform more decentralized and protected. After the transition of Ethereum to PoS, miners were replaced by validators. They will do the work of confirming new transactions with the help of stakes and get recompense in ETH coins. The current ETH staking yield is 4-4.5% per annum. Four exchanges control over 60% of all staking ETH coins. These are Binance, Lido Finance, and Kraken. 

What is Proof of Stake?

Proof-of-stake is the safest blockchain security algorithm. Such trendy coins as Cardano, Tezos, Solana, and others are created on PoS. The popularity of PoS is explained by the absence of the need to buy expensive mining equipment and the possibility of getting an easy passive income through staking digital currencies. PoS is known for low energy spending for block generation. The concept of Proof of Stake states that coin holders can confirm block transactions depending on the overall value of their coins. Hence, the more coins a miner owns, the more mining power he/she has. 

What are the advantages and disadvantages of staking?

Staking cryptos has its pros and cons. Let us list the most common ones. 


  • An easy method to earn passive income. 
  • Cheap and swift money transfers. 
  • No additional equipment is needed for staking.  
  • It is an environmentally friendly process. 
  • Guaranteed payouts.
  • Staking coins helps maintain the blockchain. 


  • Crypto prices can drop quickly, and a coin holder can lose money instantly.  
  • You cannot unstake coins whenever you wish to sell them. 

What are the best cryptocurrencies for staking? 

Cardano, Solana, Polkadot, BNB, DeFi coin, Ethereum, Avalanche, and Terra are considered the best digital coins for staking in 2022. Try staking various stablecoins if you are afraid of market fluctuations and the loss of your coins’ price. It is recommended to stake USD Coin and Tether due to their huge trading volume. For example, if you want to stake Theta, you can use this option on the project site or through the Theta wallet. The effectiveness of staking this coin depends on the number of coins and the staking period. To start staking Theta, you`ll need 1,000 coins.

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