There are many different ways to earn crypto nowadays. You can invest some cash and try trading on an online exchange, but you’ll have to spend much time and effort before you actually earn something substantial. You can also try mining, but then you’ll have to invest heavily in hardware, and that’s quite risky, especially for a beginner. However, many online platforms offer a much simpler way of earning a token or two: staking. In this article, we explain how staking works and give you a brief overview of the staking features offered by ByBit, one of the leading crypto exchanges.
What is staking
Staking is a unique feature of blockchains using the PoS (or DPoS) consensus algorithm for validating transactions. Basically, you freeze some amount of crypto in your wallet allowing the network to use it, and then you get a reward for providing the funds. Think of it as a way to lend crypto at interest, and a profitable one: some cryptocurrencies may bring you 100% APR or more, allowing you to double your initial investment in just a year. However, staking usually means you can’t access your frozen funds in a while, and that’s pretty risky due to high volatility of the crypto market.
What ByBit has to offer
There are two options in the ByBit staking program. Locked staking allows you to choose from about a hundred different tokens, so you can stick to more well-known ones like BTC or ETH or try investing in less popular yet more profitable coins. Potential rewards differ greatly: the interest rates start from just about 1% and go all the way up to almost 80% for some tokens. The longer you freeze your coins, the bigger your reward will be. Another option is called DeFi staking: it’s more flexible, but you can choose only among 15 coins. The staking time is limited to four months here.
How to start staking
Staking is one of the most popular features of ByBit, so the platform has made it as novice-friendly as possible. Basically, all you need to do is create an account and verify your identity, and that should not take much time. Deposit some coins or buy them right there on the exchange to start staking. Find the earnings section and select ByBit savings to view all the available options. Browse them and choose a token to stake. If you can change the staking duration, adjust it to your needs, then just hit the button.
The author of the article and financial analyst Mikhail Vnuchkov shares his experience every day. Read more at the link.