If you have a basic idea of cryptocurrencies and how they work, you must have come across the term crypto staking. Even if it’s not similar to crypto mining, it rewards the individuals who stake their digital assets in the same way that miners get the reward.
Crypto mining is the process of securing the Blockchain network by verifying the transactions using mining hardware ASICs. On the other hand, staking also helps in securing the network, but neither you need to buy mining hardware nor solve the problems. You can simply purchase the coins from the tokenization platform and lock them to get the rewards.
Guide to Earn Via Token Staking
Now that you have an idea of staking tokens, take a look at how you can earn passive income via token staking. However, if you’re aiming for trading, then you can open bitcoin trader account using Bitcoin Storm that will allow you to trade cryptocurrencies.
Where Can You Stake Crypto Tokens?
There are different platforms where you can stake crypto tokens, and they are crypto exchanges, staking service platforms, crypto wallets, etc.
- Exchanges: Do you have an account in any crypto exchange? If you have an account in any legitimate and popular crypto exchange such as Binance, Kraken, or Coinbase, you can stake crypto tokens. However, the number is not limited to these three, most of the crypto exchanges provide staking options, but you need to check before opening an account.
- Staking Service Platforms: These platforms are specially designed for staking purposes. Unlike exchanges, you cannot trade through these platforms. So, these platforms take some percentage of your reward as a staking fee. Some of the popular staking platforms are MyContainer, Stake Capital, etc.
- DeFi Platforms: These platforms will become increasingly popular in 2020. Some of the best DeFi platforms are Maker, Compound, Yearn Finance, etc. Different platforms offer different types of assets; you should consider these factors before choosing a DeFi platform.
- Crypto Wallets (Cold): You can also stake cryptocurrencies through your crypto wallets. However, ensure that the address used for the staking address is the same as your private wallet.
Choose the Right Staking Platform
Don’t hurry while choosing a platform for staking crypto tokens. Consider the following factors before you choose a platform for staking:
- Read the reviews from different communities like Reddit to know about a staking platform. You will find that crypto enthusiasts often discuss the different platforms, and there you can also ask about crypto staking platforms. You can also read other’s answers to different questions related to staking platforms.
- Consider the year of establishment and reputation of the platform before you select.
- Usually, we don’t give importance to the terms and conditions from the beginning and get into trouble later. So, you need to read them before you agree with the terms and conditions.
- Check the reviews and statistical data from reliable crypto platforms like CoinMarketCap.
Once you select a platform, you need to follow the right steps for staking crypto tokens. Here are the simple steps for staking through different platforms.
How to Stake in Different Through Different Platforms
Since staking service platforms are specially designed for staking, you will not find any difficulty. So, here I have explained how to stake through an exchange and a wallet.
- Staking Through Wallet: The procedure is more or less similar in every wallet. You can simply open an account and find the staking option to stake cryptocurrencies.
- Staking Through Exchange: The process of staking in different exchanges may vary, but the more or less the steps are similar. Go to the finance section, find the earn crypto option, select the staking option, then you can choose the amount and duration. Generally, the lock-up time is above 24 months, but you can stake more than that.
Final Thoughts on Token Staking
Although the main function of staking is to secure the Blockchain network, it’s not the same as mining. Since it doesn’t require mining hardware and solving computational problems, most people prefer staking instead of mining.