The first crypto assets that emerged in the market were based on the Proof-of-Work consensus protocol. Every new block in a blockchain is received and formed due to a complex math task solved by high-technological equipment and computation. Over time, it is getting more and more complicated to receive one Bitcoin (or any other PoW-based coin). Mining requires enormous expenses on equipment and regular maintenance, as well as brings colossal electricity costs. Now we dare to say it is the era of Proof-of-Stake-based crypto assets. That is Solana, Cardano, etc.
The benefits of PoS:
- allows lower transaction fees;
- provides high throughput;
- allows crypto staking.
By the way, Ethereum has also switched to the PoS mechanism in the fall of 2022. So it is now possible to stake it as well.
Staking Crypto Sites
The most often used crypto platforms supporting crypto staking are:
- WhiteBIT
- eToro
- Coinbase.
To start staking, you should first register on one of these exchanges and deposit the coins you want to stake. Then pick a staking program. They vary by an underlying asset and period for locking.Â
When you lock your coins on an exchange, you cannot withdraw them before the staking period expires, so be attentive when reading conditions for staking.Â
Staked crypto makes a significant contribution to a blockchain’s work and liquidity. In return, you receive yield (rewards) depending on the number of staked crypto and the locking period. For example, the WhiteBIT exchange offers staking periods from 10 to 360 days. There are around 40 staking programs for you to pick from. The more coins you lock and the longer they are on staking, the bigger your reward will be. However, you should take into account the market fluctuations and assess risks.
For more information on staking, go to the WhiteBIT blog, where you will find an article on this topic.
