People are so clueless what staking is! Even crypto influencers don’t know it
1 min read
Staking is a feature of a Proof of Stake blockchain where you stake your own coins to secure the blockchain. It is your own coin, these coins are native to the blockchain and are not tokens of it. Usually it is delegated PoS where you delegate your coins to a validator, these coins are still yours!
Now comes the misunderstanding too many people have about the term “staking”:
A lot of exchanges (including Coinbase, CDC, Binance etc.) let you “stake” “your” coins which they have the keys, so basically they are staking, they are reaping the whole rewards (including possible airdrops), you are paying a premium by receiving less staking rewards for convience letting an exchange doing the staking for you
these exchanges let you even “stake” USDT and other shitcoins which are tokens of ETH/BSC/etc: This is NOT staking! These exchanges are paying you interests , nobody nor you or the exchanges themselves stake these tokens, because of the nature of tokens not the contribute to securing a blockchain, you just cannot stake them!
It’s amazing to see that even influencers on Youtube or crypto twitter have no clue what staking is. They recommend their users to stake at an exchange (my best guess is they are affiliated with this exchange and get money for doing so).
Staking this way like they say is less staking than someone flipping steaks on a BBQ day
submitted by /u/Tbrainee
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