Large cryptocurrency exchanges offer their clients a wide range of tools that allow them to use digital assets with a benefit and generate significant income. Those tools range from simple to challenging. For example, advanced traders know all the peculiarities of trading and understand how to predict the future market trend, so they practice futures trading. This type of financial instrument requires experience and a great set of knowledge of the market and technical details.
On the other hand, there are also much easier trading tools that do not require deep knowledge of the market. We are talking about staking.
What is Cryptocurrency Staking?
This financial tool is similar to a traditional bank’s deposit but in the crypto scope. The essence is leaving your funds on a crypto platform for some time and receiving interest in return. Depending on the coin you pick and the length of the locking period, the size of your rewards varies. Moreover, different crypto platforms offer various staking programs and different coins available for this option.
What Coins are the Best for Staking Cryptocurrency?
It is a popular question. The answer is: to pick crypto assets with a high level of liquidity and the lowest volatility. Pick popular coins and projects that have an established reputation. Little-known assets are not a good option for staking, for their rates can be incredibly volatile, and it will cause losses.
How to Stake Crypto?
Here are some simple steps on staking:
- pick a crypto exchange that supports staking;
- register an account;
- pick a staking program that suits you;
- deposit coins and lock them.
Important to note that withdrawing coins from staking before the staking period ends is not affordable, or if you do that, you will bear huge losses. So before locking your coins, ensure you understand the locking period. For more information on staking, go to the WhiteBIT blog – there, you will find many articles that explain staking in simple terms.