How the staking providers earn money ?

[FIFA worldcup]

I always wonder that what's the benefit of staking to the staking providers platform ? For sure they must be earning something big that's why they give us attractive APY but i want to know how does it help them to earn money ?
Most of us know about staking but very few may know this secret.

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[btcsmlcmnr]

Staking APY is volatile as price of cryptocurrency. You can not get exact APY you want if you don't sell your coins or tokens you received from staking.

In early phase of staking, profit is high and it attracts late-comers. The later they come, the less profit they will get with less rewards. It brings another risk: joining too early with hope to get as highest rewards as possible. Doing this, people take risks of invest in scam projects.

With staking, joining too early or too late are risky.

[blockman]

I always wonder that what's the benefit of staking to the staking providers platform ? For sure they must be earning something big that's why they give us attractive APY but i want to know how does it help them to earn money ?
Most of us know about staking but very few may know this secret.

Just like the miners, they will be called validators and also earns from the transaction fee. But just as many stakers join the pool, the lesser rewards will come to the participants because rewards will be distributed. And if there are too many stakers, rewards will be decreased due to the large number of stakers. I want to get into it but calculating the risk and reward, I don't find it attractive.

[DaMut]

I have done a research about this before and I found the fact that they are working almost just like bank in real life.
the most basic way for them to earn through staking is from fee, whenever you are getting a reward from your asset they will deduct it for a few percent as a payment for them. it was described in their terms, other than that some of them are using your asset to loan it to other protocols. they are gaining another source of income based on the interest from your asset, that is why they could survive until this date.

[The Cryptovator]

You should use Google to know how staking system works. Here is a explanation from the Coinbase.

  What is staking?
Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.

How does staking work?
When the minimum balance is met, a node deposits that amount of cryptocurrency into the network as a stake (similar to a security deposit).
The size of a stake is directly proportional to the chances of that node being chosen to forge the next block.
If the node successfully creates a block, the validator receives a reward, similar to how a miner is rewarded in proof-of-work chains.
Validators lose part of their stake if they double-sign or attempt to attack the network.

Hope you understand. But be careful about scammers. There are many fake staking systems and all staking platforms aren't the same. For example, Yobit also allows you to stake various coins with a high return. But most probably it's a Ponzi scheme behind of staking system. So you should know which is a real stake and which is a fake stake to save your assets.

[FIFA worldcup]

You should use Google to know how staking system works. Here is a explanation from the Coinbase.

  What is staking?
Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.

How does staking work?
When the minimum balance is met, a node deposits that amount of cryptocurrency into the network as a stake (similar to a security deposit).
The size of a stake is directly proportional to the chances of that node being chosen to forge the next block.
If the node successfully creates a block, the validator receives a reward, similar to how a miner is rewarded in proof-of-work chains.
Validators lose part of their stake if they double-sign or attempt to attack the network.

Hope you understand. But be careful about scammers. There are many fake staking systems and all staking platforms aren't the same. For example, Yobit also allows you to stake various coins with a high return. But most probably it's a Ponzi scheme behind of staking system. So you should know which is a real stake and which is a fake stake to save your assets.

So how do we differentiate between the real staking system and the fake one ? One way is to join the staking programs only at good platforms like binance or pancakeswap and avoid scammy platforms like yobit. Is there any other way to know about the fake staking ?

[electronicash]

You should use Google to know how staking system works. Here is a explanation from the Coinbase.

  What is staking?
Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.

How does staking work?
When the minimum balance is met, a node deposits that amount of cryptocurrency into the network as a stake (similar to a security deposit).
The size of a stake is directly proportional to the chances of that node being chosen to forge the next block.
If the node successfully creates a block, the validator receives a reward, similar to how a miner is rewarded in proof-of-work chains.
Validators lose part of their stake if they double-sign or attempt to attack the network.

Hope you understand. But be careful about scammers. There are many fake staking systems and all staking platforms aren't the same. For example, Yobit also allows you to stake various coins with a high return. But most probably it's a Ponzi scheme behind of staking system. So you should know which is a real stake and which is a fake stake to save your assets.

So how do we differentiate between the real staking system and the fake one ? One way is to join the staking programs only at good platforms like binance or pancakeswap and avoid scammy platforms like yobit. Is there any other way to know about the fake staking ?

would like to know as well, how do we identify which is fake?  when i tried Daedalus i only pick the first one i found and stake, luckily i got some rewards which i didn't care how much.

the more stakers going to come to join a pool of a validator the lesser the reward stakers will get but if you are just holding your coins for long term anyway, just stake it. you can unstake them any time you want anyway.

[ahoenk]

Staking providers earn money by staking Their token. Stake can make coin in circullation decrease and it will impact to price, especially when the demand increase and the coin staked is more then the demand for it. However each platform has its own rules.

[jostorres]

I always wonder that what's the benefit of staking to the staking providers platform ? For sure they must be earning something big that's why they give us attractive APY but i want to know how does it help them to earn money ?
Most of us know about staking but very few may know this secret.

You refer the wallets and exchanges which are providing platform for staking? I guess there must be some  special benefit for them as they are providing extra benefits for their customers to keep them attracted to their services. For example, binance is pervading facility for staking TRX and I'm sure Junstin Sun must be paying binance for that because TRX is having active dev and owner whereas if they host RDD coin then probably they will never able to talk to its owners and there cannot be any remuneration for binance.

If you look at the list of coins which are providing staking functionality on platforms, might be having active dev team. And for the marketing purposes both devs and these platforms are working on providing staking functionality to attract more investors.