“Cryptocurrency continues to be one of the popular digital investments to this day due to the high returns that investors can gain from it. Crypto prices continue to grow, and buying crypto coins can burn one’s digital wallet. As such, coin owners keep on finding ways to grow their coins without spending too much. One simple and efficient way to grow crypto coins is staking.”
What is Crypto Staking?
In simple terms, crypto staking is the method of growing coins through rewards. This method only applies to cryptocurrencies that implement the Proof-of-Stake consensus mechanism. In a nutshell, stakers set aside their coins for staking. Validators will then be randomly selected from the pool of stakers. The selected validator can add a block of the transaction to the blockchain and will be rewarded if the block is validated as true. Conversely, the validator will be punished if the block added is validated as a fraudulent transaction by taking a portion of the staked coins or the whole of it. Proof-of-Stake is a simple but efficient method as compared to the power-consuming and complicated Proof-of-Work mechanism.
Setting yourself up as a validator will take time and experience but will be very rewarding in the end. However, there are easier ways to stake, such as through a cryptocurrency exchange or a staking pool.
What is KuCoin?
KuCoin is a cryptocurrency exchange that was launched in 2017 and had its headquarters in Seychelles. KuCoin offers crypto trading, including advanced trading options such as futures, the ability to trade on margin, and the ability to buy, sell, and store crypto coins. KuCoin has one of the widest selections of coins, with hundreds of token selections that users can buy, sell, or trade. Investors like KuCoin because it has bank-level security, a user-friendly interface, and a wide range of crypto services aside from low trading and withdrawal fees. KuCoin offers a Trading Bot that can do the trading for you, which is especially useful for those who are just starting. To date, KuCoin already has over 10 million users and has expanded to 200 countries. One drawback of KuCoin, especially for US crypto traders, is that it’s not licensed to operate in the US. Since it’s headquartered in Seychelles, it’s not subject to US regulations.
Staking on KuCoin
KuCoin also offers to stake on its platform. KuCoin has a staking pool called Pool-X, where stakers can earn a passive income either through staking on flexible terms or fixed terms. When you stake on flexible terms or soft staking, you stake your coins at a lower percentage yield, but you don’t need to lock up your coins, and you can redeem your funds anytime. On the other hand, you can stake your coin on fixed terms for a higher percentage yield. This, however, would require you to lock up your coins for a certain period, after which the funds will be automatically redeemed to your account. As an example, if you will stake Ethereum on a flexible term, the APR (Annual Percentage Rate) is 1.44%. Fixed-term staking for the same coin has a higher APR of 5.15%. The lock-up period is not the same for all coins. Some coins have lock-up periods of just 24 hours, while some may take as long as 28 days.
How to Stake on KuCoin
Staking on KuCoin is easy, but first, you need to create a KuCoin account. To start staking, log in to your account, click Earn, and select KuCoin Earn.
Next, scroll down to the Stable section to see the staking products supported by KuCoin. You can also see the APR of each product as well as the type of staking available (Flexible or Fixed). Select the product that you want to stake, enter the amount to be staked, and click Subscribe.
You can view or monitor your earning history from Financial Account → Staking.
KuCoin supports over 500 cryptocurrencies; however, it is worth noting that not all coins can be staked. Staking is only applicable to coins that use the Proof-of-Stake consensus mechanism. There’s a long list of coins that you can stake on KuCoin’s platform, and the popular ones include Lossless, Cosmos, Tether, Ethereum, Cardano, Solana, Polkadot, and Tron.
Benefits of Staking on KuCoin
Staking, in general, does not require expensive rigs in order to gain rewards for your coins. Staking on KuCoin has the same benefit. Aside from not buying high-end computer systems, you also don’t need intensive knowledge of staking. In fact, you don’t need to worry about the technicalities of staking since KuCoin will do everything for you. All you need are tokens on a blockchain that implements the Proof-of-Stake consensus mechanism. KuCoins interface is also intuitive and user-friendly. Beginners can easily understand the interface and start staking once they have already set up their accounts on KuCoin. KuCoin also offers flexible terms where users don’t need to lock up their coins for a certain period in order to gain rewards. Unlike in fixed terms, users can redeem their rewards any time, albeit at a lower return. KuCoin users also benefit from the low transaction fees that KuCoin offers.
Proof-of-Stake is becoming more popular because of its simplicity. In fact, there’s already a considerably large number of cryptocurrencies that make use of this mechanism. Proof-of-Stake also paved the way for many investors to grow their coins without owning a high-end system to solve complex mathematical problems, as is the requirement for mining, a method used in the Proof-of-Work mechanism.
In staking, users simply have to “deposit” their coins and earn rewards after a certain period of time. To make it even easier for stakers, there are now tons of cryptocurrency exchanges that offer staking services. KuCoin is a popular exchange that offers staking on its platform through its staking pool, Pool-X. KuCoin offers both flexible and fixed staking terms in its easy-to-use user interface. KuCoin supports a wider range of cryptocurrencies and has lower fees compared to other crypto exchanges. KuCoin also strives to maintain its robust security to keep the users’ funds safe and secure. With its string of benefits, KuCoin is a good platform to consider for staking for beginners and advanced users alike.