The first crypto asset that emerged in the world was Bitcoin. Its emergence spurred the development of the industry and encouraged the emergence of many other digital assets. Bitcoin and other popular assets, such as Ethereum, were developed and launched based on the Proof-of-Work consensus protocol. The essence is a complex work of advanced technological equipment as a result of which coins are received (mined). This way of receiving crypto assets is costly and requires a lot of electricity and expenses for equipment maintenance.
Another way to receive crypto assets is staking. We would like to explain staking crypto meaning in this article.
What Does Staking Crypto Mean?
Digital assets developed and launched based on a Proof-of-Stake consensus protocol are not “mined” but staked. Staking is much simpler than mining:
- it does not require expensive equipment and maintenance;
- it does not demand enormous expenses for acquiring computers (miners);
- it does not result in huge expenses for electricity;
- and it is eco-friendly, compared with mining.
Now let’s talk about how crypto stake works. Here are some steps on staking:
- pick a platform for staking;
- register an account and deposit coins to it;
- pick a staking program;
- lock your coins in staking and receive interest.
It is essential to mention that if you withdraw your coins from staking before its period expires, you will bear losses. So it is crucial to read staking conditions carefully.
Another important thing is picking an asset for staking. You should choose coins with little volatility, so pick among the leading crypto assets.
On the WhiteBIT crypto exchange, you can pick a staking program depending on the coin you pick and the locking period. On its website, you can enter data and calculate your rewards to understand when and how many additional coins you will get. The deposit body will also be returned once the program expires.