Cryptocurrencies are created through a process of mining or staking which depends on whether the coin uses a Proof-of-Work (PoW) or Proof-of-Stake model. Both models involve solving complex computation equations and validating transactions. The former requires mining hardware to validate transactions which reward the miners with newly created coins. An example is Bitcoin, which grants miners a "block reward" every 10 minutes with network transactions to be validated. The miners are rewarded with new Bitcoins for their services to process transactions on the blockchain. Related: How to mine Bitcoin - Complete Guide. On the other hand, a Proof-of-Stake system does not require mining equipment. Individuals can pool resources and participate in a process called cryptocurrency staking to validate transactions and secure the network. The participants are rewarded with staking rewards in the same currency as the network .