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, participants 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, similar to 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- Lock-Up Periods: Certain staking solutions have a lock-up period, meaning the staked assets cannot be withdrawn or traded during this time.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
- 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.).
- 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.).
- 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.).
- 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 KYC verification.
- 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: Withdraw your staking rewards once they become available in your account.
Staking is an appealing way to generate passive income from cryptocurrencies, while also contributing to the security and performance of blockchain platforms. It provides an opportunity to enhance your crypto portfolio and support the decentralization of the crypto ecosystem.
