Re: staking altcoins - how does it work? explain like I am five :-)
I have couple of questions regarding staking:
1. How staking work for altcoins that are PoS?
2. How is your coins used by those who took it as a stack?
3. When you stack, is your coin stays with you or it will be transferred to somewhere else? (the idea of transferring your coins seems to be really stupid)
4. Anything I should read/watch/learn about stacking?
Thanks.
1. How staking work for altcoins that are PoS?
2. How is your coins used by those who took it as a stack?
3. When you stack, is your coin stays with you or it will be transferred to somewhere else? (the idea of transferring your coins seems to be really stupid)
4. Anything I should read/watch/learn about stacking?
Thanks.
1. By staking, you stake your coins to become a validator, your validating transactions on the network. You only need coins, internet connection, and a computer (this depends on what network your validating though most don't require much computer resources.) You get rewards based off of how much you stake though sometimes you don't. It depends on the network / cryptocurrency.
2. Refer to the above
3. Some networks have large proof of stake requirements so people "Delegate" there cryptocurrency to validators. you don't need to transfer your tokens to delegate.
4. Check out this link for more information. https://learn.easycrypto.com/what-is-proof-of-stake-and-how-does-it-work/
Hope this helped. Send me a PM or ask in a reply if you have more questions!