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What is Staking Crypto?

There’s probably no person who would not have heard about mining. That is the most popular method of receiving cryptocurrencies. It uses complex computational techniques to solve mathematical problems and create blocks stored in a ledger called a blockchain. Receiving cryptocurrencies in this way involves high equipment and maintenance costs. In addition, receiving new blocks becomes more complex over time, increasing mining expenses. There is also another way to acquire digital assets – a much easier and less costly one. It has nothing to do with tedious work, expensive machinery or electricity bills: it is staking. Let’s discuss it here.

Crypto Staking Explained

In simple terms, staking means storing coins in an exchange and receiving a reward for doing so. Staking crypto helps support the work of the network, for the more coins are stored on a platform, the higher liquidity it can offer. In return, a user that gives his coins for staking receives more coins in return. That looks similar to a bank’s deposit.

Staking is based on the Proof of Stake protocol. That is why crypto assets built on the PoS protocol can be staked, but not only – you can also stake such coins like BTC via crypto platforms. So we have answered the question, what is staking crypto? Let’s now see how it works on the WhiteBIT exchange.

The Benefits of Staked Crypto on WhiteBIT

The exchange offers its registered customers the option to place smart bets. This process consists of three steps:

  1. Create an account on WhiteBIT
  2. Replenish your main account with coins you wish to put into staking
  3. Pick a staking program to your liking
  4. Hold your coins in staking and do not withdraw them.

The WhiteBIT exchange allows you to earn up to 28% a year. Depending on the staking plan you choose, your rewards will vary. To learn more about staking programs, go to the WhiteBIT blog. There, you will find many helpful guides and articles on trading and staking.

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