📚 Term of the Day: What is Staking?
Staking means locking your cryptocurrency in the blockchain for a certain period in exchange for an annual yield (APY).
🔹 A simple example:
If you stake ADA at a rate of 4% annually
↪️ It means if you have 100 ADA
↪️ After a year, you will have 104 ADA without any trading or effort.
✨ Why do people stake? 1️⃣ To support the blockchain network
2️⃣ To earn passive income
3️⃣ Without selling the currency itself
⚠️ Important to know:
– Some currencies require a lock-up period during which you cannot withdraw
– Profits vary based on supply, demand, and network mechanisms
❓ My question to you:
Have you tried staking before? And if yes… on which currency?
