Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Arguably the main reason why staking has become so popular is because it enables crypto holders to earn substantially higher APYs than traditional savings accounts or money market funds. Using Trust Wallet, for example, you can currently earn 23%+ APY for staking Binance Coin (BNB).
With cold staking an user can stake his crypto using a hardware wallet or another cold wallet. The advantage of this is that the funds are safe, because the wallet is not connected to the internet. You need physical access to your wallet to manage the funds.
The Proof of Stake (PoS) concept states that a person can mine or validate block transactions according to how many coins they hold.
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