Crypto exchanges offer a variety of financial instruments allowing one to earn a profit in the long and short term. Inexperienced traders might face difficulties trying complicated trading strategies where they should react to every market fluctuation during the day and make the most of them. However, there is a somewhat less stressful option of making a profit that does not require quick decision-making – crypto staking. Let’s see how it works.
The Essence of Crypto Staking
One of the most popular ways to make money using digital coins is to buy and hold them long-term. It gives enough time to analyze the market and make the right decision. However, there is even a better option that allows receiving additional coins for holding coins – crypto staking. So, you buy coins and hold them on a crypto platform, receiving rewards in return. Here are some steps to stake crypto on the WhiteBIT exchange:
- Register an account
- Deposit coins to the main account or buy coins and deposit them
- Pick one of the staking programs offered on WhiteBIT
- lock your coins and rest assured. Once the locking period expires, you will receive your coins back, plus rewards.
There are some crucial thongs to know about staking. First, coins locked in staking cannot be withdrawn, or if you manage to do it, you will lose rewards and, in some cases, pay penalties. So when picking a program, ensure you understand for how long your coins will be locked.
Next, when picking a crypto asset for staking, pay attention to those with the biggest liquidity and smallest volatility. Sometimes when the rate of an asset drops by the date of staking program expiration, the losses exceed rewards. So access risks and read staking conditions carefully. For more information about staking, read the WhiteBIT blog. It explains staking in simple terms and provides guides.