What is cryptocurrency staking (earn)?
Staking in cryptocurrency involves locking up a specific amount of digital assets in a blockchain network to support its operations, such as transaction validation and security. In return, participants or “stakers” receive a reward in the form of additional cryptocurrency. Staking is an essential feature 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 foundational consensus algorithm.
Staking is generally seen as a way to earn passive income in the crypto world, much like earning interest from a traditional savings account. The difference is that instead of depositing fiat, they deposit crypto and receive rewards based on the value and duration 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- Lock-Up Periods: Certain staking solutions have a lock-up period, meaning the staked assets cannot be withdrawn or traded during this time.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
- Kucoin (Popular exchange, operating since 2017. In our opinion, Kucoin is the crypto exchange with the most user-friendly interface we have ever seen.).
- Bitmart (Founded in 2017, BitMart has grown to become a prominent global cryptocurrency exchange, offering services to more than 9 million users across over 180 countries.).
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: Retrieve your staking rewards once they are available in your account.
Staking is an appealing tool for generating passive cryptocurrency income, which also helps maintain the security and performance of blockchain platforms. Staking provides an opportunity to enhance your crypto portfolio while contributing to the decentralization of crypto.
