If we talk about PoS blockchains, then it is here that staking ensures the operability of the entire network. With the help of this mechanism, transactions are confirmed and new blocks are generated in the blockchain, as well as new network coins are mined. Validators are responsible for all these processes in PoS networks.
The higher the validator's balance, the more chances he has to be selected to confirm a new block and receive a reward. Generally, the more coins participate in the stake, the higher the overall reward of the validators.
Many PoS cryptocurrency holders choose to delegate their coins. Often, crypto exchanges play the role of large validators, which launch their nodes in PoS blockchains. So, PoS staking services are provided by almost all top exchanges on the market.
BinanceAs the largest exchange, Binance supports 23 staking coins. Here you can stake both popular assets and little-known cryptocurrencies. Among other exchanges, Binance offers a higher rate for Tezos. The minimum stake is only 1 XTZ. The income of each investor is calculated based on the proportion of his part in the total volume of coins that have been staked on the exchange in the last month. The remuneration is also paid once a month.
CoinbaseBy blocking their ETH on the platform, Coinbase users can earn up to 6% per annum. Through the American platform, which trades its securities on the NASDAQ, you can lock any number of Ethereum 2.0. Also, XTZ and ALGO coins are available for staking here. The disadvantage is that the interest percentage is not guaranteed, but depends on the demand. The more ETH is blocked by people, the less is the rate of reward.
GeminiСreated by the bitcoin billionaire Winklevoss brothers, is a marketplace accessible to private and institutional investors. Gemini offers clients to invest cryptocurrency on the Earn staking platform. The service works in any of the 25 digital assets supported by the platform. However, this is not the staking that maintains the PoS work. The exchange uses invested assets for lending, thanks to which users earn interest. Earn users have to agree to the condition of complete loss of the deposit if the borrower does not repay the loan, which makes the offer less attractive for many investors.
Staking in cryptocurrency walletsCold staking is available on the crypto market. Crypto investors can keep their coins in special wallets and at the same time take an active part in staking. There are at least several wallets that allow you to generate passive income by locking your assets for a certain period.
This kind of staking is supported by hardware wallets like Ledger or Trezor. To participate in cold staking, you need to keep your PoS coins in your hardware wallet at all times. As soon as the coin holder transfers them to another address, cold staking stops.
Ledger hardware walletAlmost every member of the crypto community will recommend Ledger hardware wallet when it comes to the long-term storage of cryptocurrencies. It is a cold storage wallet for cryptocurrencies. Such storage is considered safer because the money is on a physical device that is disconnected from the Internet.
In addition to secure storage, Ledger allows multiple coins to be staked. To do this, the user will need to install a cryptocurrency application on the device and create an account with Ledger Live. After that, the investor simply transfers money to it and they are automatically locked to start earning a reward.