Steemit Crypto Academy Contest / S8W6 - STEEM Staking

Hello friends,
Welcome to my post, in which I have discussed cryptocurrency staking. Below is what I have discussed based on the contest hints.

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Use your own words to define the cryptocurrency staking operation and explain how it works.

Source

Cryptocurrency staking is simply a process of locking up the cryptocurrency that I have on my Steemit wallet or that of an exchange wallet like Binance in order for me to earn rewards. Cryptocurrency staking works perfectly well with blockchain technology that makes use of the PoS (proof-of-stake) consensus protocol to validate blocks.

In a nutshell, cryptocurrency staking means giving out your cryptocurrency to support block production in order to earn rewards as more blocks are produced.

Cryptocurrency staking works in the following ways: The simplest way is through proof of stake consensus, which is the simplest and best way of staking cryptocurrency.

When you stake your cryptocurrency, you indirectly choose honest validators to run the affairs of the blockchain, which will in turn give you some reward based on the amount of cryptocurrency that you have staked. To this end, your rewards are determined by the amount of cryptocurrency you have staked, which means the higher your stake, the higher your rewards, and vice versa.

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Does our Steemit ecosystem offer staking for its STEEM token? If yes, show how it works.

Yes, the Steemit ecosystem offers staking for its STEEM token, which works differently. In the Steemit ecosystem, the type of staking that we have is called "power up," where users can convert their liquid STEEM tokens in order to have more influence over post-payout decisions. Also, on the Steemit ecosystem, if a user powers up his or her account, the user will earn an interest rate of 2.94%.

As a Steemian, it is advisable that you convert your Steem token to Steem power to have more influence and be earning curation rewards. You can also delegate your STEEM power to another user or community and still receive rewards. To this end, in the Steemit ecosystem, the staking of STEEM tokens works in the following ways:

The first step in staking on the Steemit ecosystem is to visit your Steemit wallet, click on Steem, and then tap on "Power up," as shown in the screenshot below.

Once you have clicked on "Power up," enter the amount of liquid STEEM that you have to power up and click on "Power up."

At this stage, click on "Ok" and authorize the transaction by entering your private Active Key.

On the Steemit ecosystem, you can withdraw your staking through a process known as "power down," which usually takes 4 weeks (1 month) to complete. Once you have power down, you will be reviewing 25% of the amount of Steem Power you have power down as liquid Steem tokens.

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Do you choose to stake your STEEM tokens on the Steemit platform, or do you prefer staking on an exchange wallet? Argue your choices.

Well, I don't know much about how staking works on exchanges because even the exchange that I am using doesn't have a staking feature. Having been researching and blogging on Steemit for some months now, I will choose to stake my Steem token on the Steemit plagiarism.

The benefits of staking my Steem tokens on the Steemit platform are greater than the benefits that I will get if I stake my Steem tokens in an exchange wallet. On Steemit, I will have more influence on the platform, which will in turn earn me curation rewards.

Also, by staking my Steem token on the Steemit platform, I will be earning 2.94% every day, though I can still decide to delegate out my Steem power to communities and friends in order to continue earning rewards.

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Are you working to build your Steem Power balance? Do you have enough SP to upvote worthy posts and comments? Do you recognize the importance of engagement?

Yes, I am seriously working to build up my Steem power balance by powering up 50% of my earnings. For now, I do not have enough steem power to upvote worthy posts and comments since I am still new to this good platform. Although I now know how the Steemit platform works, I am seriously working on building up my Steem Power balance.

Engagement is very important on the Steemit platform. Engagement helps create relationships among Steemians and helps us interact better with one another, which is the goal of every social media platform.

I am inviting: @jueco, @inspiracion, and @jasminemary