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Staking is a process unique to certain cryptocurrencies that use a proof-of-stake (PoS) consensus mechanism. By holding and ‘staking’ their coins, individuals can contribute to the network’s safety and governance. In return for locking up their property to validate transactions and support the network, stakers are rewarded with additional coins, similar to earning interest in a financial savings account. A custodial pockets is managed by a third-party service, such as an exchange, which holds the private keys to your cryptocurrency and has management over your funds. If you’re not fairly ready to dive into cryptocurrency, there are some related investments to assume about. For instance cryptocurrency course for beginners , some Exchange Traded Funds (ETFs) supply “ways to play” in the crypto market, but do not directly maintain cryptocurrency or its derivatives. 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