What is staking?
Last updated: 2024-01-15
In the cryptocurrency world, staking is a method of earning rewards by holding specific cryptocurrencies for a set period to support the ecosystemβs operations.
Staking functions similarly to depositing money into a savings account at a bank: the bank lends out your deposits, and you earn interest on your balance.
However, unlike savings accounts, non-stable coins can experience price fluctuations. This means you may incur a loss if the coinβs value declines more than the rewards earned through staking.
For example:
Non-stable coins: BTC, GYROWIN, ETH, etc.
Stable coins: USDT, USDC, FDUSD, etc.
Staking can provide substantial returns but carries risks due to the potential volatility of non-stable coins.
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