Despite the collapse in the cryptocurrency market in 2022, this field is still pretty attractive, and many new participants aim to join this market and become owners of digital assets. There are some ways to become an owner of crypto assets:
- you can mine crypto;
- you can play blockchain games ad receive coins as rewards;
- you can stake it.
What is staked crypto, and how to make it work? Let’s talk about it here.
Crypto staking is a much better way to receive coins compared with mining because mining requires huge expenses on equipment and electricity, and it is becoming more and more difficult over time. Staking, in turn, does not demand any special equipment. All you need is an Internet connection.
The essence of staking cryptocurrencies is buying some coins and putting them on an exchange without withdrawing until the staking period expires. During the time your coins are locked on the platform, they add liquidity to it, and you receive additional coins as rewards after the period expires. That sounds like a deposit in a bank.
Where Can I Stake?
Staking cryptocurrencies is available on some large crypto platforms. Before locking your coins, you should read staking conditions carefully because once crypto is staked, you cannot withdraw it back or sell it. It is locked on a staking platform as long as the staking plan states.
We recommend trying the WhiteBIT crypto exchange, for it offers transparent conditions for staking and around 40 different staking plans for you to pick from. The platform offers all popular crypto for staking. Usually, these are trusted and established digital assets with big liquidity and low volatility. This factor should also be taken into account – it is not recommended to stake little-known and volatile crypto assets or those coins whose price largely depends on hype.
If you decide to leave the staking program beforehand, WhiteBIT will not pay you rewards. This should also be considered when you decide how many coins you lock. Look for more information on passive income on the WhiteBIT blog.
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