How Does Staking Crypto Work?
Beginner crypto traders that have not got enough practice working with crypto assets might face many difficulties when trading for the first time. Efficient trading requires maximum attention and a thorough understanding of how the market works and when it is right to open and close positions. There is an option to receive a passive income using crypto assets – crypto staking. Let’s talk about it in this article.
What is a Stake in Crypto?
Staking is similar to a deposit in a bank – you deposit your coins to a crypto platform and hold them there for some time. In return, you receive bonuses in the form of the same coins additionally accrued to your account. It is a reliable way to multiply your crypto holdings while taking a minimum risk. However, there are peculiarities:
- First of all, not all digital assets are good for staking. It is recommended to pick the most liquid coins with the smallest volatility. That is any of the leading crypto assets in rankings.
- Staked coins cannot be taken out of a platform until the staking period ends. Or if you manage to withdraw them, you will lose rewards (it depends on an exchange you pick.
How to Start Staking Cryptocurrency?
It is a simple way to receive passive income; let’s see how it works on the WhiteBIT exchange. First, register and move coins to the main account. Then pick one of the proposed staking programs. They vary by underlying assets and period of locking. That may be 10 to 390 days. The longer the locking period you select, the more rewards you receive in the end.
The WhiteBIT Blog will help you understand how staking works. It explains how to stake crypto in simple terms and offers a guide on doing it. Using a staking calculator, you can check how many rewards you will receive by staking a different number of coins and in different timeframes.