This is basically the same (details matter, ADA for example keeps the coins in the wallet all the time - AMP coins are transferred elsewhere) for all PoS (Proof of Stake) coins.
Bitcoin, on the other hand, is a PoW (Proof of Work) coin.
Edit since i can't reply downthread:
You're of course free to cash out your staking rewards however you want, but mind 2 things:
- taxes
- transfer fees
- the interest compounds..
I still end up with more of the same asset with no intrinsic value.
I assume they aren't paying me out in GBP or freedom bucks?
The main difference, to my understanding, is that rewards are kinda like getting paid directly by voting (in many cases, in a "republican" fashion via delegation), whereas with regular currencies, the mechanisms that correlate bond yield to economic activity are too complex and abstract for the average joe to grasp.