Steemit Crypto Academy Contest S8W6 || STEEM Staking
Greetings to All
I hope that you all will be great by the blessings and mercy of the Almighty Allah. Welcome to my post I am here to participate in the Steemit Engagement Challenge S8W6 in the Steemit Crypto Academy and the topic that is chosen this time for the contest is Steem Staking that is important to understand the concept of Staking on the Steemit Platform to understand the importance of power-ups so let's start the discussion about the topic without any wastage of time.
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Cryptocurrency staking is the procedure of storing our digital or crypto assets in wallets or on a distinctive network. Staking of the crypto tokens is very beneficial both for the Network in which the tokens are staked or for the owner of the assets or tokens. Staking is the way to earn income or profit from the assets that we hold. The amount of benefit depends on the number of tokens that we have staked by the process of Staking the blockchain or network can secure or validate the transactions by using the number of Tokens that we have staked.
Cryptocurrency can be staked on a specific network, especially on the networks that operate on the Consensus Algorithms of Proof of Stake and these algorithms are the key to the usage of the staked tokens for the validation of the transactions on the network. The owners of the tokens are rewarded with tokens that are a small fee for the validation of the transactions on the networks and the reward is known as the Staking Rewards. The Tokens are staked for a specific period on some networks and we can unstack them when we want and unstack the amount we got at the specific time. Different networks have different operations of the Staking.
We can stake the tokens or assets on the blockchain or in any wallet in which we have stored our assets there are options to stake the tokens in the wallets also in which we store our cryptocurrency. The stake tokens are released after the specific time mostly when we release them and can be exchanged as usual but the benefit of staking is to gain the reward in return for the staking. Now I will discuss the procedure that how staking works in any Blockchain system.
How Does It Work? |
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The working of Steem Staking operation is not too much complex. When we buy the specific tokens or assets in our wallets they became our ownership. So when we Stake or lock these assets contribute to validating the transactions on the Platform or the blockchains in which we have staked the assets. the operations are mostly useful for the blockchain that are workings on the principles of the Proof of Stake (PoS). In the process when the owner of the assets stakes the tokens the algorithmic operations of the Proof of Stake are used to select the Validators randomly.
These validators validate or approve the transactions of the nodes when verified the blocks are added to the network or blockchain system. In this way, different validators approve the blocks or transactions every time. In return for these transactions, the small transaction fee is earned as the Staking reward and given to the users that have staked the relevant token.
Mostly we see that people consider mining and staking as the same procedure but different staking is the utilization of the tokens to validate the transaction that proceeds on different blockchains.***So cryptocurrency staking is overall an important step to earn good returns.
Yes, the Steemit platform also offers the staking of Steem token which is a native token of the blockchain system. When we have the steem token in our wallet we can lock or stack them for a specific time Stacking token is called steem power. When we stack this Specific amount of our STeem Token we can earn the stack reward accordingly. The tokens that are stacked or utilized by the platform are used to validate the transactions that are preceded in this way by stacking our tokens we can help the ecosystem to validate the nodes.
We can also unstack the steem tokens when we want and the tokens are received in our wallets after a Specific period it almost needs four payments for the whole Conversion. When the coins are stacked or utilized by the blockchain system for the validation of transactions we can earn an APR of 2.84% annually which is also a reward benefit for us. Along with that benefit, we can also earn they good curation reward if we have more stake Steem in our wallet and also upvote the witnesses to validate the transactions or add blocks to the Steemit blockchain.
How Can we Stake the Steem Tokens |
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The process of stacking the tokens is very simple and easy first of all we have to just access our wallet that is linked to our account and we sign up our wallet with a posting key as well as with an active Key.
You can see I simply put my active key to Signup in my wallet.
- After accessing the wallet you can simply see your balance if you don't have any balance in your account you can also buy the Steem for staking from the Poloniex or Binance exchanges. In my case I have four Steem in my wallet that I will power up now.
- Click on the small Arrow that appeared after your balance and then click the option of power up to stack the amount of steem.
- Simply after pushing the power up you will get the pop-up to enter the amount you want to power up here I have entered the maximum amount that I have in my wallet after that they will ask you to sign up with your active Key is mostly used to perform the transaction on the platform.
I have already signed with my active Key so I don't need to put it again I simply push on the icon of Powerup and my Steem is stacked now.
| So stacking Steem is very important on the platform in regards to increasing the worth of our rewards or our influence or reputation towards others. |
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I will choose to stake the Steem Tokens on the platform Although It will be good to stake them in the exchange or the wallet both But staking in the Steemit Wallet will be of great importance Here I will discuss some of the points that resulted and are beneficial to Worth of my account as well as for the development of the platform.
Reputation and Influenece |
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Staking the Steem or powering up within the Platform will help to increase the worth and reputation of our account it will help the user to build the vote value and when the user votes on the other's post he will also get the reward in return. Powering up is very worthy for our account and helps us a lot to influence the ecosystem.
Staking Rewards |
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By powering up their Steem tokens we can get the Staking rewards accordingly. As I have discussed earlier it is 2.84 percent APR and that is a benefit that we did nothing about or just by holding the Steem we can gain. Staking in the platform helps us to contribute to the development of the platform by validating the transactions that are proceeding.
Curation Rewards |
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As we know that power means the worth of the vote. If we have more Steem Power there will be more worthy of our vote and when we upvote any quality content we will get the curation rewards in return in this way Stacking the Steem in the platform helps to get more rewards.
Security |
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Security is an important factor for any platform. When we have a More amount of POwer to stack Steem in our wallets this will create a more secure ecosystem in the way that the transactions are more precisely validated and then accordingly blocks are added for the regard of working of the blockchain system.
So in this way, the Stacking of the Steem will prove better in the platform If we take the token out of the platform this will not give the benefits of influence, reputation, and the worth of the token
Yes, I am working consistently to increase and gain more and more power for that reason I am continuously powering up and did not withdraw my Steem.
Importance of Powerups |
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The powerups or staking of the Steem tokens is very important for the growth of the platform as well as for the individual's growth in the ecosystem. By Staking or powering up the total supply of the Token Increases and the demand for the specific token decreases which helps to build the worth or ratio of the Token.
I am very passionate to power up my rewards and Powering up 100% of my earnings to its benefit. I wish in the future the prices of the tokens rise and we will get their good benefits. My current Sp you can see below helps me to earn good curation rewards when I support quality content.
Importance of Engagment |
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Engagment is very important for the development of the Platform.It has great importance on the platform.
By engaging or interacting with each other on the platform the active member so the platform increases and more rewards are generated. When we Motivate others with good comments and upvotes they generate more good content and increase their activeness.
When the active members increased the worth of tokens increases and the platform step towards Development. So we should interact with others for growth.
| For that reason, the Engagement Challenge was introduced that motivate the users to actively engage with each other. |
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Staking crypto tokens is of great importance in the crypto world because it generated more rewards and supports the users as well as the platform on which the specific token is staked. Steemit also offers to stake by converting the Steem tokens into the Power we can Stake them and get the rewards of staking, curations and many more benefits That I have discussed.
So that was all from my side about the topic. I hope that you all will like to read the post and support the content.I would like to invite @steemdoctor1, @preye2 , @yeakspeace to participate in the contest
Regards:@mateenfatima |
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@mateenfatima
Your post is very enlightening, I enjoyed reading it. The steemit platform is a very great platform. Powering up offers very good benefits in the platform and it’s good to see that you are working on building your sp. Yeah, staking of cryptocurrency is very important in the crypto world in general.
Thanks for sharing your post with us.
I wish you success 👍🏼