Staking with BitMax.io - A Quick Refresher

Over the past few years the digital asset industry has evolved rapidly, and an increasing number of blockchain projects are switching to Proof-of-Stake (PoS) instead of Proof-of-Work (PoW) to reduce energy consumption and be more  environmentally friendly. From there, the concept of "Staking" emerged, which is the process of users participating in a consensus mechanism in a PoS network and earning block rewards in return. Staking has attracted many users’ attention as it may offer a stream of passive income for participants.

For any user, Staking is the process of holding the tokens and locking them up in the blockchain network to earn rewards like interests in return. In the Proof-of-Staking approach, token holders can choose whether they want to stake by running a validator or by using a staking pool. Validators then lock tokens in the network and run validator nodes or validate transactions on the blockchain.

"Staking offers an easy and efficient way to generate return from token holdings. There's no need for costly machinery or heavy electricity bills, rather, it only requires users to have a certain number of tokens in their wallet to participate and start earning." Notes Bonna Zhu, Chief Product Officer of Staking, Asia Head of Business Development & Strategy at BitMax.io.

The main benefits of staking include an opportunity for beginners to get their feet wet in the crypto world with a fairly low barrier of entry. It offers a source of earning income over time that is relatively stable and transparent. Investors who are seeking mid-to-long-term investment opportunities or are looking to invest in certain digital assets may want to consider Staking as the starting point.