Staking crypto assets is the process where investors buy tokens and deposit them on cryptocurrency exchanges to support the blockchain network operability and receive rewards in the form of new coins in return. That means that staking crypto is similar to mining (the process of receiving crypto coins through the Proof-of-Work mechanism) but with the Proof-of-Stake (PoS) consensus algorithm in the core. Many crypto start-ups have adopted this new consensus mechanism and are actively using it. For a better understanding of “What is staking crypto?”, let’s take a closer look at its benefits.
Advantages of the PoS Mechanism
The process of receiving new coins through staking is straightforward. The coins are stored in a special wallet, and they gradually grow in number. To obtain new Bitcoins (or other cryptocurrencies based on PoW), you have to buy expensive equipment, organise the space and conditions for it, ventilate it and take care of the legal aspects if your profits are large. Staking is a much more cost-effective and convenient way to receive cryptocurrencies compared with traditional mining.
How and Where to Start Staking Crypto?
There are some important nuances you should keep in mind when staking. For example, it is crucial to understand that there is a direct correlation between the number of tokens you buy and the profit you make. The more coins you have, the more profit you can make. The same goes for the staking period: the longer you hold the digital asset locked, the more profit you will eventually make.
The best cryptocurrency platform in Europe is WhiteBIT. It offers high returns for staking coins. You will find about 40 variations of smart staking plans on WhiteBIT. Each contains different information on coins locked, the period of locking, and the interest. Check out staking on WhiteBIT and earn passive income by just holding your assets on the platform.