What is BTC Staking? This is the explanation!

Bittime - In this article, you will find the difference between mining Bitcoin and lending it, as well as ways to take advantage of it. Learn innovative financial strategies to generate passive income from Bitcoin for free. Check out the explanation below!

What is BTC Staking?

The way we view money today is being changed by Bitcoin. Satoshi Nakamoto is the name of the individual or group who built it. The target is to create a secure, verifiable and immutable means of electronic exchange that is independent of any central authority. It is a peer-to-peer internet digital asset that can be used anywhere, making mobile payments easy.

Bitcoin has low transaction costs and protects identity, and can be used anywhere without bank or central government regulation. With a hashing algorithm with an average transaction confirmation time of 10 minutes, Bitcoin is designed to produce only 21 million BTC. Miners currently use ASIC chips specifically made for mining Bitcoin.

How to Stake BTC?

Although Bitcoin cannot be staked directly, there are several ways to earn passive income from Bitcoin, namely:

• Lend Bitcoin with a custodian platform. The platform has institutional clients who want to borrow Bitcoin to short the price of BTC. To fulfill their loan requests, users can give their Bitcoins to the platform and just by lending their Bitcoins they will get attractive returns.
• Bitcoin Wrap, becomes a token that Bitcoin (WBTC) provides to supply to DeFi lending platforms or other applications. This Ethereum-based application creates an economy where users can borrow crypto to increase their investments.
• Taking back Bitcoin is an innovative method that combines CeFi yields with DeFi opportunities, primarily by using liquid staking derivatives for Bitcoin. This method allows users to maximize the income they can earn from their Bitcoin holdings by utilizing multiple financial strategies simultaneously.

How Does Bitcoin Work?

Assets of decentralized digital Bitcoin has a stock of 21 million coins. This is achieved through the mining process, where miners verify transactions and add new blocks to the blockchain in exchange for new minted bitcoins.

Rewards are halved every 210,000 blocks, approximately every four years. By controlling supply, Halving guarantees Bitcoin's scarcity. This will continue until 21 million Bitcoins have been mined. This mechanism ensures that Bitcoin remains deflationary and maintains its value as a scarce and valuable asset.

What is the Difference Between Bitcoin Staking and Bitcoin Lending?

Staking usually means locking tokens to support network operations and earn rewards, while lending means borrowing tokens to other users or platforms in exchange for interest. While each has different mechanisms and risks, both can generate income without fees.

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Conclusion

The Bitcoin mining process verifies miners' transactions to maintain network integrity and adds new blocks to the blockchain. This mining, known as Halving, halves the reward every 210,000 blocks to ensure Bitcoin's scarcity and keep it a valuable asset.

While Bitcoin staking is not available directly, it can be done in several ways, such as custodial loans, wrapping Bitcoin for Ethereum tokens, or taking Bitcoin back by combining CeFi yields with DeFi opportunities. Thus, Bitcoin remains valuable as a decentralized digital asset and plays an important role in the overall crypto ecosystem.

How To Buy Bitcoin (BTC) With Bittime

You can buy and sell Bitcoin (BTC) in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. Bitcoin (BTC) is available on Bittime with BTC IDR pairing.

To be able to buy BTC IDR tokens on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet . For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.

Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.