The major cryptocurrency exchanges offer their customers a wide range of tools that allow them to use their digital assets to their advantage and generate significant income. These tools range from simple to complex. Advanced traders, for example, practice futures trading because they know all the ins and outs of trading and know how to predict future market trends. This tool requires experience and a good knowledge of the market and technical aspects.
On the other hand, there is a simpler trading tool that allows one to earn on cryptocurrency without in-depth knowledge of the market – to stake crypto.
What is Staking?
This financial instrument is similar to a traditional bank deposit but works with cryptocurrency. Basically, you deposit money on a cryptocurrency platform for some time and receive interest. The bonus amount depends on the currency you choose and the length of the locked period. In addition, different cryptocurrency platforms offer different staking programs and different crypto staked.
Here are the simple steps to staking:
- Choose a cryptocurrency exchange that supports staking.
- Register an account.
- Choose the staking plan that suits you best.
- Deposit and lock in your coins.
It is important to note that withdrawing coins from your stake plan before its period expires is not worth losing a lot of money. Some crypto exchanges impose penalties for withdrawing funds from staking beforehand. So you should be attentive when reading platforms’ staking rules to avoid being caught in a trap. Therefore, before locking your coins, you should make sure you understand when that period ends.
You can find more information about crypto lending on the WhiteBIT blog, where you will find many articles explaining staking in simple language. This exchange offers over 40 crypto lending plans that include different coins and periods for locking, which directly affects your rewards.