What is stake? It is a method of earning money by keeping cryptocurrencies in a wallet for a certain period of time. It is now possible to stake on exchanges that support it instead of a wallet. It is a system that can be realized with the PoS (Proof of Stake) algorithm.

The concepts of PoS and PoW are two concepts that need to be known to understand the subject. We can briefly define PoW (Proof of Work) as proof of work and PoS as proof of stake. The aim of both systems is to keep the system alive and ensure its continuity. Rewarding those who contribute.

(PoW) is the name of the system that has processor power in proof of work and allows you to receive payment for the contribution made as a result of the work done, and (PoS) is the name of the system that allows you to receive payment for the contribution made as a result of the shares you hold in proportion to how many shares you have in the product.

In order to make a profit by staking, you must have shares of that product. Although you usually earn money as a reward from the product you own shares in, there are also systems where you can receive the profit from different products.

For example, you staked 100 products with a product price of 1 lira, which will yield 15% profit from the same product in 1 month. At the end of 1 month, you received 115 pieces, but the price of the product decreased by 30%. The 100 products you bought for 100 liras are 115 pieces after 1 month, but 80.5 liras. So damage..

It is useful to determine the + and - points before making a decision. I am not someone who favors the stake issue. The reason is the increase in the number in circulation. The more the product, the more there must be a reason to make it valuable or to demand the excess products.

Earning systems that do not have a time limit are becoming more common, that is, you can break them whenever you want, or staking transactions made on stable coins, I see these as systems where you should take advantage of opportunities instead of your money sitting idle.

As an investor, staking can be considered a logical option among the products you plan for the long term. I'm ending the article here so as not to make it any longer 🙏🧢