This commission is small and shouldn’t be much of a hindrance for investors already using Coinbase for its convenient interface.īinance also allows the easy staking of ALGO and takes a smaller cut of the rewards than Coinbase does. Coinbase takes a commission of your staking rewards, in exchange for them holding your cryptocurrency on the network. Most major exchanges offer staking rewards on your ALGO balance, you just need to enroll in this service.Ĭoinbase simply requires that investors enable staking rewards in settings and accept the terms of service for these services. These staking rewards are a great source of passive income. The rewards are claimed every time a transaction occurs from a wallet. The rewards currently produce an annual yield of around 5%. Exchanges sometimes allow rewards to be earned on a balance of less than 1 ALGO. How Does Staking Work?Īny user that holds more than 1 ALGO in their wallet is eligible to receive rewards. Due to the large and well-credentialed team behind the project, ALGO has become a popular choice among cryptocurrency investors. Micali is a distinguished computer scientist who won the Turing Award in 2012, and his involvement lends credibility to the project.Īlgorand also has a foundation that is rewarded with ALGO for its efforts to advance the technology. Additionally, because Algorand uses a PoS consensus algorithm, the network is very unlikely to fork.Īlgorand differs from other cryptocurrency projects in that it was created by a distinguished academic: Massachusetts Institute of Technology (MIT) professor Silvio Micali. This occurs because Algorand is a pure proof-of-stake blockchain. Algorand also allows for creating non-fungible tokens (NFTs) that are stored on the blockchain with a unique identifier to prove ownership.Īlgorand issues its native currency, ALGO, to everyone who holds a certain amount of ALGO in their wallets.
These smart contracts can be strung together to create decentralized applications, which run on the blockchain similarly to how software runs on a computer. Algorand allows for smart contracts, which are immutable agreements on the network. What is Algorand?Īlgorand is a proof-of-stake blockchain that is designed to provide high-speed transactions while keeping energy costs low.
In exchange for contributing these staked assets, the validators are rewarded with more of the digital asset they stake. These proof-of-stake networks process transactions in a more energy efficient way than proof-of-work networks, which rely on mining to verify blocks by solving complex mathematical equations. To ensure that blockchains run smoothly, many projects allow users to stake their cryptocurrency assets in a way that validates network transactions. Cryptocurrencies use blockchains, which are public ledgers that verify transactions and data.