Coin staking can be done in various ways according to the needs and capabilities of the user. The following are two examples of the most popular types of coin staking:
1. Single Staking Crypto
The first method is Single staking crypto suitable for stakers who want to get rewards from staking results independently without joining a staking pool and assigning staking rights to other parties. Single staking simply locks or stores their own crypto coins on their own smart contract on a smart contract on the Blockchain network. Stakers will be rewarded for their contribution in supporting Blockchain operations in the form of tokens or crypto assets themselves.
An example of a single staking validator is Polkadot (DOT) which is a platform that uses a consensus system and has several staking validators that users can choose from.
2. Staking Pool
Staking pools are suitable for stakers who do not have enough capital to do single staking crypto. Staking pools work by combining coins with other stakers to increase their chances of validating transactions. Stakers will earn rewards that have been divided proportionally between the stakers in the pool based on the number of coins staked.