Using the Proof of Stake (PoS) algorithm is the basis of many new cryptocurrencies. Staking involves the purchase of crypto coins and holding them in a wallet for a particular period of time. This is similar to a fixed deposit in the non-digital currency sphere that rewards you with a defined interest at the end of the period as stipulated in the contract. Proof of Stake also rewards you with additional coins. By holding coins in your wallet, you are rewarded for supporting the network. Therefore, your coins will increase in number depending on how long you hold them in the wallet.