One of the crucial differences between crypto and fiat currencies is the way they are issued. While fiat money emission depends on state decisions and central banks, digital coins are “produced” by users. Probably everyone has heard about mining, which is the first and most widespread way to receive crypto assets. Complex computing technologies solve math tasks to create blocks recorded in a ledger – a blockchain. This way of receiving crypto demands enormous costs for equipment and maintenance. Moreover, receiving each new block becomes more complex over time. There is another way to receive digital assets, and it has nothing to do with difficult tasks, costly machines, or electricity expenses – here comes staking.
In simple terms, staking crypto is when you keep your coins on an exchange and receive rewards for it. When storing your coins, you support network health. In return, you get more coins accrued to your account.
While mining has a Proof of Work protocol in the core, staking relies on a Proof of Stake protocol.
Now that we got crypto staking explained, let’s see how it works on the example of WhiteBIT.
What Is Staking Crypto On WhiteBIT
The exchange offers a Smart Staking feature for its clients. It takes three steps:
- Deposit the currency you want to stake to your balance.
- Pick one of the recommended staking plans.
- Hold crypto on the exchange and receive coins.
How to pick a plan? First of all, click on the “Smart Staking” tab, read about the plans offered, and pick one that suits you better. Then check your balance and make sure you have funds on it. Next, find out the number of coins to be added to the staking program and deposit them.
Smart Staking on WhiteBIT allows users to receive up to 28% per year for just keeping their coins on the exchange. Thus, you support the platform and earn simultaneously. Every staking plan offers different conditions for staking and different rewards.
Now that you have got to know what is staking in crypto check out all the possible options on the WhiteBIT exchange or visit the White BIT blog for more information and guides.