What is cryptocurrency staking (earn)?
Staking in cryptocurrency refers to the process of locking up a specific amount of digital assets in a blockchain network to support its operations, such as transaction validation and security. In exchange, followers or “stakers” receive a reward in the form of more cryptocurrency. Staking is a fundamental functionality for blockchain networks using Proof of Stake (PoS) or its derivatives (Delegated Proof of Stake or DPoS, and Proof of Staked Authority or PoSA) as the base consensus algorithm.
Staking is generally considered a way to receive passive income in the crypto world, much like earning interest in a traditional savings account. The difference is that instead of depositing fiat, they deposit crypto and receive rewards related to the value and the time of the commitment.
Risks of staking
- Market Volatility: The value of staked tokens can fluctuate, potentially offsetting the rewards earned.
- Lock-Up Periods: Certain staking solutions have a lock-up period, meaning the staked assets cannot be withdrawn or traded during this time.
Top Cryptocurrency Exchanges Supporting Staking
- Binance (Binance was founded in 2017 by Changpeng Zhao (known as CZ) and has since become the most popular and technologically advanced cryptocurrency exchange in the world.).
- Bybit (Bybit is known among the crypto community as an exchange that often holds promotions and gives out rewards.).
- OKX (OKX is user-focused first and foremost. They relied on maximum convenience and speed of the exchange, and OKX does this very well. In addition, OKX has its own and very convenient decentralized wallet to store tokens securely.).
- MEXC (MEXC is an exchange with the best conditions. Low trading commissions, frequent promotions, no KYC when withdrawing up to 10 BTC per day.).
- Kucoin (Popular exchange, operating since 2017. In our opinion, Kucoin is the crypto exchange with the most user-friendly user interface we have ever seen.).
- WhiteBIT (WhiteBIT, launched in 2018, has quickly emerged as one of Europe's prominent cryptocurrency exchanges.).
- Gate.io (Gate.io, established in 2013, is one of the most comprehensive cryptocurrency exchanges in the market today.).
- HTX (Huobi) (HTX is a trusted crypto exchange that has been operating since 2013 and has over 47 million users worldwide.).
- BingX (Founded in 2018, BingX has emerged as a popular cryptocurrency exchange, particularly known for its copy trading features and versatile trading options.).
- CoinEx (The CoinEx cryptocurrency exchange was founded in Hong Kong in 2017. Today, it serves over 10 million users worldwide, which speaks to its reliability and popularity.).
- Bitfinex (Founded in 2012, Bitfinex is one of the oldest cryptocurrency exchanges, offering a wide array of advanced trading features.).
- Bitmart (Founded in 2017, BitMart has grown to become a prominent global cryptocurrency exchange, offering services to more than 9 million users across 180+ countries.).
- XT.com (XT.com was founded in 2018 and operates worldwide, but is especially popular in Asia. XT is not just a cryptocurrency exchange where you can trade cryptocurrencies, but an entire ecosystem for trading, earning, and borrowing cryptocurrency.).
- CoinW (Founded in 2017, CoinW has become a significant player in the global cryptocurrency exchange space, serving over 7 million users across more than 120 countries. ).
- CEX.io (CEX.io is a cryptocurrency exchange founded in 2013 and known for holding licenses to operate in regions where they are difficult to obtain. This demonstrates that the exchange is reliable and operates within the legal framework even in complex jurisdictions, providing users with optimal conditions for interacting with cryptocurrency.).
How do I stake on an exchange?
- Sign up: Register on a platform that supports staking and complete the KYC process.
- Deposit: Transfer the cryptocurrency you wish to stake to your exchange account.
- Choose a Staking Option: Select between flexible or locked staking according to your preference.
- Claim: Redeem your staking rewards once they are available in your account.
Staking is an appealing tool for generating passive income with cryptocurrency, and it also plays a crucial role in maintaining the security and performance of blockchain platforms. Staking provides an opportunity to enhance your crypto portfolio while contributing to the decentralization of cryptocurrency.
