The cryptocurrency market offers a big number of earning opportunities for traders and investors. Some trading strategies are complex to handle on the first try. So many users first try something easier and less stressful. A perfect option to begin making money using digital assets is staking crypto.
Crypto staking is the way to receive passive income while keeping your coins on a platform. In this case, the platform receives liquidity and a staker – interests. Staking implies locking coins for some time without the opportunity to withdraw them. When the locking period ends, a user takes back invested coins plus rewards earned for staking. Bonuses depend on what crypto you stake and how long you keep it locked. Every crypto platform offers various conditions for staking and different rates of returns. Let’s talk about the best assets for staking crypto and how to stake crypto using a crypto exchange.
Factors to Consider when Picking an Asset for Crypto Staking
First, pay attention to the factor of volatility. Pick those digital assets that have the smallest volatility. The fact is that if you pick some unstable asset and its price will significantly drop before the staking period ends, your losses might exceed your staking rewards.
Also you should assess the risk when working with crypto. Before locking your assets in staking, make sure you know for how long you lock them. The fact is that you cannot withdraw your coins before the locking period expires, or if you do so, you will bear losses.
Risk assessment is crucial when working with digital currencies.
It is better to pick the most liquid asset with the lowest volatility, for example:
All of them have high market capitalisation and are among the leading and the most promising coins in the market.
How to Stake Crypto?
You can use the WhiteBIT exchange. First, register an account, deposit coins to it, or buy crypto and then pick a staking program. The programs vary by locking period, so be attentive when picking one. That’s it, you can rest assured and receive additional funds when the locking period expires.