Cryptocurrency Staking: A Method to Earn Exciting Rewards

If a cryptocurrency you own allows staking, you can "stake" some of your holdings and earn exciting rewards

The primary benefit of cryptocurrency staking is that you earn more cryptocurrencies, and interest rates can be very generous. In some cases, you can earn more than 10% or 20% per year. It's potentially a very profitable way to invest your money. Like many other things in cryptocurrency, staking can be a complex or simple concept, depending on how many levels of the understanding you want to uncover. This is the process by which many cryptocurrencies validate their transactions.

How does Staking Works?

If a cryptocurrency you own allows staking, you can "stake" some of your holdings and earn exciting percentage rewards over time. This usually happens via a "staking pool" which you can think of as being similar to an interest-bearing savings account.

The reason your crypto earns rewards while staked is that the blockchain puts it to work. Staking is available with cryptocurrency that processes payments using a "proof-of-stake" model.

Which Cryptocurrencies Allow Staking?

You have to understand that not all cryptocurrencies allow staking, which includes everyone's favorite Bitcoin. But still, there are many cryptocurrencies like Ethereum (via ETH2 upgrade), Cardano, Polkadot, and Solana that allow staking.

What are the Eligibility Requirements for Rewards? 

• You must have your identity verified
• You must have the minimum balance needed for that specific cryptocurrency
• You can purchase or maintain the minimum balance or transfer that cryptocurrency from an outside wallet or exchange
• You must hold the eligible cryptocurrency on platforms like Binance, coinbase, AQRU, crypto.com, and more

On-chain and Off-chain Cryptocurrency Staking

On-Chain cryptocurrency staking allows you to stake your assets with blockchain Proof of Stake protocols such as Tezos, while Off-Chain staking allows you to stake your assets with Kraken internal programs. Off-chain cryptocurrency staking is available for eligible countries only.

Note: There is always risk associated with cryptocurrency staking because crypto prices are volatile and can drop quickly. If your staked assets suffer a large price drop, that could outweigh any interest you earn on them.