One of the most critical differences between cryptocurrencies and fiat currencies is the way they are issued. The emission of fiat money depends on government and central banks, while digital currencies are “produced” by users. Everyone has probably heard of mining, the first and most widespread method of obtaining cryptocurrencies. It uses complex computational techniques to solve mathematical problems and create blocks stored in a ledger called blockchain. Receiving cryptocurrencies in this way involves high equipment and maintenance costs. In addition, receiving new blocks becomes more complex over time. There is another way to get digital assets, and it has nothing to do with math problems, expensive machinery or electricity bills: it is staking crypto.
So crypto staking means storing coins in an exchange and receiving a reward for doing so. Staking coins support the functioning of the network. In return, you get more coins in your account. It looks like a bank deposit.
Mining is based on the Proof-of-Work protocol, while staking is based on the Proof-of-Stake protocol.
Now that we have explained crypto staking, let’s see how it works on the WhiteBIT exchange.
How to Stake Crypto on WhiteBIT?
The exchange offers Smart Staking for its customers. The process is divided into three parts:
- Deposit the cryptocurrency you want to stake into your balance.
- Choose one of the recommended plans.
- Hold the cryptocurrency on the exchange and receive the coins.
How to choose a plan? First, click the Smart Staking tab, find out about the plans on offer and choose the one that suits you best. Plans vary by the number of coins staked and the locking period. Next, check the number of coins you wish to add to your staking plan and make your deposit.
With WhiteBIT Smart Staking, users simply leave their coins at the exchange and receive up to 28% profit per year. This way, you can support the platform and earn money at the same time. Staking plans have different requirements and rewards. Keep in mind that staked crypto cannot be unlocked before the plan expires. Or if you unlock them, you will receive a penalty.