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How does staking cryptocurrencies work?

Creation date: May 2, 2024 1:03am     Last modified date: May 2, 2024 1:03am   Last visit date: May 28, 2024 4:47pm
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May 2, 2024  ( 1 post, 1 reply )  
5/2/2024
1:03am
Brian Torphy (joxojej)

 

I would like to know how staking cryptocurrency works? I mean, what is its working algorithm? Let's say, if we talk about mining, it works by an algorithm a set of rules and mathematical operations used by miners in the process of mining cryptocurrencies with proof of work. So how is it different from mining?

1:09am
Ottis Pfannerstill (ladexo): edited 5/2/2024 10:37pm

This method of earning is based on the PoS mechanism, and means the following: everyone can support the blockchain by investing a certain amount of their cryptocurrencies in stakes and earn passive income for it. I am currently earning from Dym staking, it earns me about 3% of my annual earnings https://xbanking.org/.