📘 Crypto Beginner's Dictionary: What is staking, farming, and gas?
Hello everyone! The crypto world can seem complex, especially due to the multitude of new terms. Today we will cover three key concepts that everyone who wants to earn from cryptocurrency should know.
1. What is Staking?
Staking is the process of locking your cryptocurrency assets to support the operation of a blockchain network. Imagine that you are depositing money in a bank, but instead of a bank, it's a decentralized network, and instead of interest, it's a reward in the form of new coins.
* How does it work? Staking is used in blockchains with a Proof-of-Stake (PoS) mechanism. You "stake" your coins to help validate transactions, and for this, you receive a reward.
* Where can this be done? You can stake coins directly on Binance using the Binance Earn feature, or through other platforms and wallets.
* Examples of coins: Ethereum (after the upgrade), Solana, Cardano, Polkadot.
2. What is Yield Farming?
Yield farming is a more advanced way to earn passive income. Its goal is to achieve maximum returns from your assets.