Staking crypto
Within the crypto market, you will increasingly encounter the term ‘Staking’. Staking is therefore often used by people who trade in crypto. In addition, crypto staking is also increasingly possible with brokers. It is possible that you do not yet know exactly what staking crypto entails. That is why you can read in this blog what staking is, we give the advantages and disadvantages and we show you how to stake crypto via a broker.
What is staking?
Staking is the process of locking up your cryptocurrency or multiple cryptocurrencies within a certain contract or within a broker/exchange. As a reward for locking up these cryptocurrencies, you will receive a periodic reward in the form of a percentage of the coin you staked. Staking is only possible for cryptocurrencies that use a Proof-of-Stake consensus mechanism, for example Ethereum.
Staking crypto: pros and cons
Now that we’ve discussed what exactly crypto staking entails, let’s move on to the pros and cons of staking.
Advantages
- No technical knowledge or expensive equipment is required;
- All you need to do to stake is simply purchase crypto and lock it in your wallet. How this works exactly will be discussed later in this blog;
- By staking you support the operation of your favorite cryptocurrencies.
Disadvantages
- Your cryptocurrency that you want to stake will be locked for a certain period of time. This means that during this period you cannot sell your crypto;
- Some cryptos can only be staked through brokers or exchanges, meaning you don’t have full control over them yourself.
Bitvavo staking
Now that you know what staking is and what the pros and cons are, we will explain how staking works via an exchange. In this example, we will take Bitvavo as an exchange. This is one of the many exchanges that makes it possible to stake via their platform. There are many different coins that can be staked and new ones are added regularly. In addition, it is also possible to stake cryptocurrencies that do not use a Proof-of-Stake consensus mechanism via Bitvavo.
You can easily stake via Bitvavo by following these steps:
- Determine which cryptocurrency or cryptocurrencies you want to stake;
- See if it is possible to stake this cryptocurrency;
- If you already have the cryptocurrency you want to stake in your wallet, all you need to do is enable the staking option. If you don’t have the coin yet, you will need to purchase it first.
Please note: some coins have additional requirements. For example, you may need to have a minimum amount of that coin in your possession. Check carefully if there are additional requirements before you start staking.
Bitvavo staking coins
In the table below you will find all cryptocurrencies that are available for staking on Bitvavo at the time of writing. Behind each crypto the potential staking percentage is mentioned, given by Bitvavo.
| Crypto | Staking | Crypto | Staking |
|---|
| SHEET (SHEET) | 1,07% | ICON (ICX) | 7,5% | |
| Bitcoin (BTC) | 0,77% | NEO (NEO) | 0,52% | |
| Bitcoin Cash (BCH) | 1,02% | Ontology (ONT) | 0,51% | |
| Cardano (ADA) | 4,25% | Solana (SOL) | 5% | |
| Chainlink (LINK) | 0,49% | Tether (USDT) | 6,1% | |
| Cosmos (ATOM) | 10% | Tezos (XTZ) | 0,66% | |
| Dai (DAI) | 6,1% | Tron (TRX) | 1,03% | |
| Ethereum (ETH) | 1,01% | USD Coin (USDC) | 6,1% | |
| Litecoin (LTC) | 1,04% | VeChain (VET) | 0,49% | |
| Manager (MANAGER2) | 6% | Waves (WAVES) | 5,5% |
Compare crypto brokers
Do you want to start investing yourself after reading this blog? Or are you looking for a suitable platform to invest. Through our comparison tool you can quickly, independently and free compare brokers .