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Staking in trading is the process that allows users to earn a fixed income from their digital assets by locking them up for a certain period. Essentially, staking is done on digital currencies that operate on a Proof of Stake (PoS) system.
Here's how the stacking process works in a simplified way:
1. Choosing a digital currency for staking: The digital currency you want to stake must be available for this type of operation, such as Ethereum (after the transition to PoS), Cardano, Solana, and others.
2. Coin Lock: You deposit your digital currencies in a wallet or on a staking-supported platform, where these currencies remain locked for a specified period of time.
3. Participating in Network Staking: By locking your coins, you help secure the blockchain network and verify transactions. Instead of mining, which requires a lot of energy, staking uses less energy as validators are randomly chosen based on the amount of coins they have staked.
4. Getting Rewards: In exchange for your contribution to securing the network, you receive rewards in the form of additional digital coins. Rewards are determined based on the percentage of coins you stake and the staking duration.
### Stacking benefits:✔️
- Negative income: You can earn rewards regularly without needing to sell assets.
- Contribution to the network: helps secure the blockchain network and contribute to maintaining its stability.
### Risks of stacking: ✔️
- Currency lock: You may need to wait for a certain period of time before being able to withdraw the currencies.
- Market volatility: The value of the digital currency may decrease during the stacking period, affecting the overall investment value.
If you are interested in stacking digital currencies, make sure to study the stacking conditions well.⬆️⬆️