staking altcoins - how does it work? explain like I am five :-)

btcxz

newbie

Activity: 24

Merit: 1

Quote from: a298b112 on September 17, 2021, 06:21:54 AM

I have couple of questions regarding staking:

1. How staking work for altcoins that are PoS?
2. How is your coins used by those who took it as a stack?
3. When you stack, is your coin stays with you or it will be transferred to somewhere else? (the idea of transferring your coins seems to be really stupid)
4. Anything I should read/watch/learn about stacking?

Thanks.

1. By staking, you stake your coins to become a validator, your validating transactions on the network. You only need coins, internet connection, and a computer (this depends on what network your validating though most don't require much computer resources.) You get rewards based off of how much you stake though sometimes you don't. It depends on the network / cryptocurrency.
2. Refer to the above

3. Some networks have large proof of stake requirements so people "Delegate" there cryptocurrency to validators. you don't need to transfer your tokens to delegate.
4. Check out this link for more information. https://learn.easycrypto.com/what-is-proof-of-stake-and-how-does-it-work/

Hope this helped. Send me a PM or ask in a reply if you have more questions!

mexite

jr. member

Activity: 706

Merit: 4

Quote from: a298b112 on September 17, 2021, 06:21:54 AM

I have couple of questions regarding staking:

1. How staking work for altcoins that are PoS?
2. How is your coins used by those who took it as a stack?
3. When you stack, is your coin stays with you or it will be transferred to somewhere else? (the idea of transferring your coins seems to be really stupid)
4. Anything I should read/watch/learn about stacking?

Thanks.

My inputs:

1. Staking works for blockchain that operates on the PoS consensus mechanism. When you hold and lock coins on the network, you help to secure the network and confirm transactions on the blockchain.

2. When you delegate your coin to a validator, they accumulate the coins with those contributed by other users to make the network's security more robust. PoS model give voting power and align incentives for the user.

3. In order for you to stake, you have to transfer or deposit it into the delegates pool or lock it into a smart contract if you are staking yourself.

4. There are a lot of enlightening articles on staking on Google and videos on YouTube. Avail yourself of the various online resources to know more.

blockman

hero member

Activity: 3066

Merit: 629

20BET - Premium Casino & Sportsbook

Honestly, all of those questions have answers if you look them through Google. They're explaining more of it and you only have to look read each of those articles that you may find like these articles.
(https://www.fool.com/investing/stock-market/market-sectors/financials/cryptocurrency-stocks/what-is-staking/)
(https://www.coinbase.com/learn/crypto-basics/what-is-staking)

kramchers

full member

Activity: 854

Merit: 101

Quote from: a298b112 on September 17, 2021, 06:21:54 AM

I have couple of questions regarding staking:

1. How staking work for altcoins that are PoS?
2. How is your coins used by those who took it as a stack?
3. When you stack, is your coin stays with you or it will be transferred to somewhere else? (the idea of transferring your coins seems to be really stupid)
4. Anything I should read/watch/learn about stacking?

Thanks.

For what is trending nowhere in cryptocurrency is Yield farming, just my advice is that before you go on unto it, do your own research in the yielding platform that you are gonna enter it. Because, for now, Biswap is one of the good for yield farming based on my experienced or using it even up to now was it gave me a nice profit every month.

makishart

legendary

Activity: 3108

Merit: 1029

Quote from: a298b112 on September 17, 2021, 06:21:54 AM

1. How staking work for altcoins that are PoS?

You're helping securing your network through staking your token to the network. You will be rewarded from your tokens that already staked in the network.

Quote from: a298b112 on September 17, 2021, 06:21:54 AM

2. How is your coins used by those who took it as a stack?

Your token just like a power like mining hashrate. This being replaced by token (staking) to make the protocol become much more conservative. This is not used by those but by its blockchain.

Quote from: a298b112 on September 17, 2021, 06:21:54 AM

3. When you stack, is your coin stays with you or it will be transferred to somewhere else? (the idea of transferring your coins seems to be really stupid)

When you wanna staking your coin and you will be getting a staking address that dedicated to stake your coin in the network. You can withdraw it anytime if there's no vesting period applied to your token.

Quote from: a298b112 on September 17, 2021, 06:21:54 AM

4. Anything I should read/watch/learn about stacking?

Yes and better to read more about that here https://coinmarketcap.com/alexandria/glossary/staking

a298b112

member

Activity: 162

Merit: 36

I have couple of questions regarding staking:

1. How staking work for altcoins that are PoS?
2. How is your coins used by those who took it as a stack?
3. When you stack, is your coin stays with you or it will be transferred to somewhere else? (the idea of transferring your coins seems to be really stupid)
4. Anything I should read/watch/learn about stacking?

Thanks.

Topic: staking altcoins - how does it work? explain like I am five :-) (Read 114 times)