Staking BDGR or any other cryptocurrency is considered an alternative to mining that requires significantly fewer resources. With staking, you essentially lock up your cryptocurrency in exchange for receiving rewards.

Some cryptocurrencies use a Proof of Stake consensus mechanism. In that case, you would stake your crypto in an approved Bitcoin staking wallet and earn more crypto for holding it there.

Platforms can also offer Bitcoin staking. In this case, it involves holding your crypto on the given platform or exchange and earning interest or additional crypto for doing so.

Remember that BDGR staking results in you having more BDGR than you started with. You will also benefit from any increase in its price during that period.

How Does Bitcoin Staking Work? What Is Proof of Stake?

Proof of Stake (PoS) is an alternative to Proof of Work (PoW). PoW is how Bitcoin is created, i.e., mining, and it is known for being highly resource-intensive and not available to everyone. That resource use comes from the need to solve increasingly complicated equations, which use extensive computer resources.

By contrast, Proof of Stake requires participants to lock up or stake their coins. Then, the protocol chooses one of the participants to validate the following block. In exchange for the validation, they receive cryptocurrency. The more of the crypto in question you hold, the more likely you are to be chosen.

Delegated Proof of Stake

There is also another variation called Delegated Proof of Stake (DPoS). In this mechanism, your crypto holdings entitle you to voting rights. You get more votes if you have more crypto. You then use the votes to elect delegates. Those delegates typically receive the rewards and then return them proportionally to their electors.

Platforms With Staking Expand the Cryptos You Can Stake

Now that we explained BDGR staking, you can see that it technically only works with cryptocurrencies that use Proof of Stake. BDGR is not one of those. Some common ones are Ethereum 2.0, Tezos, Algorand, and Icon. However, crypto users are savvy, and platforms offer an alternative.
The term crypto staking has expanded to include any act of holding your cryptocurrency or locking it up to profit. This means that something like a crypto savings account or crypto investment account can qualify.
That provides nearly endless opportunities, as you can find a platform that engages in Bitcoin lending or other methods of growing your cryptocurrency. It also lets you stake nearly any crypto you want, including Bitcoin. You don’t have to limit yourself to those with Proof of Stake consensus mechanisms.

Is Bitcoin Staking Profitable?

Yes! Crypto staking is set up to be profitable. Remember that staking works because of Proof of Stake. In other words, cryptocurrencies offer profits in exchange for staking to help them run the network. As such, they need to make it profitable as that is the best way to encourage people to participate.