📎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 ecosystem’s 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 coin’s 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.