When it comes to cryptocurrency, one way to make a profit is to sell your investment when the cryptocurrency markets price goes up.
Investors generally think about mining crypto or purchasing it on a crypto exchange. But staking, or getting coins in your crypto wallet by holding them, is another alternative for those interested in cryptocurrencies.
So, What is Staking?
Staking allows you to participate in the validation of new transactions on the blockchain and earn rewards as a result. Some cryptocurrencies require you to stake your funds for a set period before you can earn rewards, but others don’t.
Rewards are usually paid out in the form of whichever crypto you staked. Staking is only possible with cryptocurrencies built on blockchains that use a proof-of-stake (PoS) mechanism to confirm transactions, like Avalanche, Polygon, and Cardano.
Staking in KuCoin
The exchange has been designed for users who are looking for a seamless trading experience with quick load times, one-click buy and sell functions, and a simple but intuitive interface that allows you to trade without having to use the more complex charting tools available on other exchanges. While it’s not the most popular cryptocurrency exchange out there, KuCoin offers an excellent selection of cryptocurrencies at competitive prices.
The exchange has low fees and offers a lot of cool features. For example, you can adjust your trading fee to give you priority when making trades (but it will cost you). The platform also has two-factor authentication, mobile apps, an API for developers, and SMS confirmations.
You get 50% off the trading fee if you pay using KuCoin shares instead of Bitcoin or Ethereum—which you can do using their own cryptocurrency called KuCoin shares (KCS for short). You can buy them on the KuCoin exchange with Bitcoin or Ethereum, and then use them to save on fees.
Crypto Staking in KuCoin: Step By Step Process
If you stake crypto on KuCoin, it’s easy to do from your mobile or desktop.
The process of staking a cryptocurrency on KuCoin involves logging into the user’s account, going to the “Earn” tab on the taskbar, then searching for the desired coin. Next, click on the grey down arrow to view all of the options available for staking.
Each one has its own terms and conditions so it is important to read carefully and make sure you understand each term before clicking “Subscribe.” If you are satisfied with the terms, enter how much you want to stake and then click “Subscribe.”
Ethereum Staking on KuCoin
The Ethereum 2.0 upgrade—commonly referred to as The Merge, or Ethereum 2.0—refers to a collection of upgrades that will merge Ethereum’s current Proof-of-Work chain with the new Proof-of-Stake chain. This upgrade is commonly referred to as The Merge because it merges both chains together into one singular blockchain, and it is part of the larger Ethereum 2.0 roadmap.
One of the major selling points of KuCoin is that it pays users dividends in ETH2 tokens. Aside from being a cryptocurrency, ETH2 serves as the fee that KuCoin will use to purchase back the KuCoin Shares (KCS) tokens from their customers.
The KuCoin Rewards Hub
As the USDT price are habitually soaring, it is thrilling to acquire rewards from this platform. KuCoin’s Rewards hub offers various ways to earn extra money through tasks linked to your account.
Currently, USDC is only available for trading on KuCoin, but Circle does plan to make it available for other exchanges soon.
KuCoin’s Rewards Hub is a fun way to earn some extra cash. If you’re already a KuCoin user, you can easily set up a task that will drop cash into your account when you complete it.
KuCoin’s Rewards Hub tasks are divided into two key sections: basics and challenges.
The Basics page offers rewards that don’t require you to spend any money, and offers free rewards for simply completing some simple tasks, like following KuCoin on Twitter or joining their Telegram group, for example.
The Basics section includes easy-to-complete tasks like creating a wallet, linking it to your KuCoin account, and trading a set amount of cryptocurrencies. You’re rewarded with points as you complete each task, and the points can be exchanged for cryptocurrencies on the platform or gift cards.
On the other hand, in order to earn rewards from the Challenges section you must spend some money or complete more complex tasks. For example, you could receive 50 KCS by completing five different challenges; one of them requires you to spend at least 100 KCS with your trading account on KuCoin within a certain period of time.
The Challenges section includes more complicated tasks like making an investment of at least $500 and withdrawing at least $5 worth of cryptocurrency within 24 hours. If you complete these Challenges, you’ll receive more valuable prizes like more cryptocurrencies or even cash rewards like Paypal payments or gift cards.
Staking is a good option for investors who want the security of long-term returns and don’t mind short-term fluctuations in price. If you need your money back before the staking period ends, be sure not to lock it up for staking.
Before you buy crypto for staking, it’s essential to do your research. While each project has its specific staking requirements and rules, it’s always a good idea to do your homework before investing in any cryptocurrency.