Platforms that offer options for trading cryptocurrency have a variety of different tools allowing to generate income. Some of those tools require a particular set of knowledge and skills. For example, futures trading requires the ability to forecast future asset prices. Other tools are less complex and only require simple actions such as depositing coins and keeping them in an exchange’s storage for a while. Such a method of receiving a profit is called staking.
What is Crypto Staking?
The first crypto assets that emerged in the market were created through mining. That means to receive coins, people use advanced technologies and expensive equipment, which, through solving complex math tasks, generate every coin. This method refers to Bitcoin, Ethereum, etc. The mining method requires increased electricity costs plus expenses for equipment. As a result, the complexity of receiving every coin is increasing. We may conclude that not everyone can afford such expenses.
There is another way to generate coins – staking. What is it? It is the way to receive crypto coins while keeping them on an exchange. That sounds like a bank deposit but in the crypto scope. Staking works with digital assets that have a proof of stake protocol consensus. For example, Solana, Cardano, and other coins. However, Bitcoins can also be staked. For this, just use crypto platforms that support this function. For example, WhiteBIT.
If you want to know about cryptocurrency wallet then read these cryptocurrency wallet users manuals.
How to Stake Crypto?
Staking is the best option for beginner traders who have no experience and do not want to take risks. It is a kind of passive income option that requires only storing your coins on an exchange until the locking period ends. In return, you receive interest in the form of additional coins accrued to your account once the locking period expires. To practice staking, you may try the WhiteBIT crypto platform:
- Register an account
- Deposit funds to your mail account
- Pick the staking program
- Lock your assets in staking.
To learn more about staking programs and earning opportunities for crypto stakers, go to the WhiteBIT official website and pick an asset and period of staking, and depending on what you choose, rewards will vary.