What is staking?

Staking is a process in which cryptocurrency holders volunteer to take part in validating transactions on the blockchain – in other words, checking that the ledger all adds up. The checking is not done by individuals, but by computers in the blockchain network, often via third-party staking services. In return, validators, who cannot use their cryptocurrencies involved in the validating process for a period of time, receive a share of the transaction fees or newly created cryptocurrencies. That reward is then passed on to customers at centralized exchanges who agree to stake their assets.

From a customer’s perspective, it’s a way to receive returns on cryptocurrencies, by agreeing for them to be “put to work,” or “locked up,” for a certain period of time. Staking is only possible on “proof-of-stake” blockchains, such as Ethereum.

Crypto staking is when you pledge your cryptocurrency toward helping validate transactions on the blockchain. You won’t personally be validating transactions, but computers in the network will, and you can stake easily through programs at our Company.

The incentive for staking is earning rewards.

Staking rewards are a kind of income paid to crypto owners who help regulate and validate a cryptocurrency’s transactions. In that sense, staking rewards are like a dividend or interest on a savings account but with much lower risk. Rewards are paid in the cryptocurrency that you’re staking.

What is crypto validation?

Validators participate in the decentralized computer network that confirms transactions and ensures that those recorded in a crypto’s blockchain are legitimate. For doing so, they are rewarded with cryptocurrency. But it’s not a riskless process for those who stake their coins and become validators, since they could lose some of their investment by approving transactions that don’t conform to a cryptocurrency’s rules.

Even those who don’t have enough to become a validator themselves can pledge their coins with a validator and earn rewards. So those with just a few coins can earn staking rewards if they work with a crypto exchange or another crypto platform to do so. Rewards can be deposited into your account as they are earned.

Many of the most popular cryptocurrencies, such as Ethereum, use proof-of-stake validation, but not all do, including the most valuable, Bitcoin. Bitcoin uses proof-of-work, which takes more computing power than proof-of-stake, and uses a process known as mining to validate transactions and manage that coin’s blockchain.

How much can you earn through crypto staking?

The amount of staking rewards that can be earned varies greatly, depending on the staking program, the cryptocurrency and how many people are actually staking a given coin.

With the more popular coins such as Bitcoin, Ethereum, Cardano, Litecoin and Polkadot, the rewards vary from 2 to 20 percent yearly. When you’re working with our Company to stake your coins, you may receive different rewards from one to the next as we strive to give you the right rewards.

Finally, it’s important to understand that these staking yields can change depending on how many people are participating and what the total reward pool is.

Coins available for staking.







Decide on the token and term.

Decide which token you want to stake and how much, keeping the staking term in mind. Because our Company works with thousands of exchanges all over the world, we offer “flexible” terms, which means you can withdraw your funds at set period of times, when locking your assets into a set term length, which can vary from a minimum of 6 months or more than 1 year. Even with flexible terms, you’ll typically have a waiting period of 5 business days before your funds are accessible again.

The beauty of it is that, after you initiate the staking, there’s not much to do other than wait. Rewards are deposited directly into your account according to the schedule and the terms chosen and the terms the Company has established.

What are the risks of staking?

While it may seem like you’re getting free money for participating in crypto staking, it’s important to understand that there are risks involved.

Should you stake your cryptocurrency holdings?

The most important question to ask yourself is whether staking aligns with your investment thesis. Are you looking to trade crypto for profit or are you looking to hold it for a longer period?

If you’re looking for a quick trade, staking might not be for you, if you think cryptocurrency has a long and prosperous future, then maybe agreeing to a lock-up where you can’t sell it right away and wait for the fruits of your labor, then staking rewards may be the right way to go.

Naturally, you’ll also want to consider the risks mentioned above and when you stake crypto assets, you’ll want to understand the conditions of any agreement, with this being said, if this is for you, please refer to your Financial Advisor (account manager) for staking options within our Company.