Staking LYO Credit tokens on LYOTRADE, a licensed crypto exchange that offers a variety of staking services enables you to receive up to 50% per year.
- Staking is a type of consensus mechanism of blockchains wherein transaction validators are selected based on the amount of crypto they hold.
- You can receive up to 50% annual interest when you stake LYO Credit tokens on LYOTRADE.
- LYO Credit is the utility token of the LYOPAY Ecosystem, a fully compliant and licensed crypto platform.
- Staking is a process that can strengthen the ability of a blockchain to validate transactions to make the blockchain more efficient and safer.
What is Staking?
Most cryptocurrencies utilize two of the most common types of consensus mechanisms to validate new transactions, add them to the blockchain, and produce more coins or tokens: Proof of Work and Proof of Stake.
The first type is Proof of Work (PoW). it is an algorithm wherein virtual miners solve a complex computational puzzle using hardware that produces high computing power to verify and secure a blockchain. In some countries, there are numerous mining farms or warehouses dedicated to mining cryptocurrencies. In (PoW), the first miner to successfully solve the puzzle is the one who will update the blockchain. A specific amount of crypto will be given to the miner as a reward.
Proof of stake, the second type of consensus mechanism, uses the staking method. The process of adding new transactions to the blockchain is different. It is done by locking the coins in a wallet to put them to work. Unlike PoW, this model doesn’t need any kind of hardware, power supply, mining rig, and the like. For a user to take part, they only need to lock their crypto assets. Once the crypto is locked, they can begin verifying transactions and updating the blockchain within a specific timeframe. Users will be rewarded with crypto in return.
Staking Tokens on a Regulated Crypto Exchange
The principle of staking is the same as putting money in a savings account, keeping it there for a time period, and earning interest based on the bank’s terms. Earning yearly interest from traditional banks can sound appealing, but the average interest rate per year that any user can get from any bank is 0.06%. On the other hand, LYOTRADE, a compliant crypto exchange, offers an annual interest rate of up to 50%.
Is Staking LYO Worth It?
LYO Credit is the native token of LYOPAY, a regulated and licensed crypto ecosystem that constantly develops innovative products and services that will make cryptocurrencies easy to use. With this, the value of LYO Credit is projected to climb in the coming years. Moreover, it is not just the abundant annual rewards that make LYO Credit staking beneficial. It is also about maintaining the security of the fully compliant crypto exchange.
Download the app of LYOTRADE on your smartphone: onelink.to/lyotrade
I am Pawan Kashyap currently living in Amritsar. I always try to grab new things from the cryptocurrency market. From my observations and trends in the market, I always try to provide the best and accurate information in the form of articles from this blog. Follow us on Facebook, Instagram, and Twitter to join us.