What is Staking?
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| What is Staking in Crypto Market? |
Staking is the act of pledging your crypto to help secure and verify transactions on a blockchain. In return for staking your crypto, you earn rewards from the network.
What are the benefits of staking?
- Passive income. You can earn rewards without having to do much (or any) work.
- Participation. You can support the network you believe in and help it grow.
- Eco-friendly. Staking requires less computing power than Proof of Work mining, resulting in less energy consumption.
What are the risks of staking?
- Volatility. The value of your staked assets can go up or down, just like any other crypto asset.
- Loss of control. Once you've staked your assets, they will no longer be custodied by us on your behalf. Once unstaked your assets will return to your trading wallet and be custodied by us once again.
- Slashing. If a validator sends invalid transactions, the network may penalize, or slash, parties who would otherwise receive rewards. This is meant to discourage bad behavior on the network.
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