When it comes to making money investing in cryptocurrency, the most popular way of going about it is to buy the coin, store it in a secure wallet and hope for the price of the coin to rise. The past 18 months has however proven this method to be faulted. The market has been in a consistent downtrend which has left a lot of people who bought the coin at its highest level bankrupt. The failure of this method right now has resulted in the invention of other methods of making money off the crypto market. Of all these methods, we will only be discussing the most straightforward, easy, not far from the norm and highly effective way of making money off the crypto market—Staking. Before we talk about staking, there is a need to understand what proof of stake is.
What is Proof of stake?
Proof of stake has been defined as a type of algorithm by which a cryptocurrency blockchain network aims to achieve distributed consensus. Just like the name suggests, nodes are required to have some amount of coin stored in a wallet connected to the network. The reward awarded to each node is dependent on the wallet size of the network users. In some cases, a reward in percentage is usually kept in place. This reward usually ranges from 10% per year to 100%. In some very rare case, the percentage return can be up to 800% per year. A case in point is that of the Sakhi Coin platform.