What Is Staking – Learn With KuCoin

Staking is a term that crypto holders widely use. To understand what staking is and how it works, we need to analyze the blockchain model and how we can stake using the KuCoin exchange. Staking is a process in which crypto holders lock their crypto for a certain period, generating passive income. It’s much similar to a deposit account which is opened to earn interest by holding it for a certain time. 

How Does Staking Work?

Bitcoin, the core of crypto, works on a Proof-of-Work (PoW) mechanism that enables miners to create trillions of numerical guesses to develop blocks containing data. Due to such a rigid system, miners form one block in approx. Ten minutes maintains the safety of bitcoin and forms a shield against security threats. While Proof-of-staking is an alternate mechanism used by a few crypto currencies, it is comparatively easy as it doesn’t require huge energy consumption, unlike the PoW model. In this model, stakers hold funds in a particular contract, and when a new block is needed, an algorithm selects a staker with the highest no. of stake for forming blocks. 

Staking On KuCoin

Although many users work on the PoW model, users are seemingly shifting to the PoS model due to less energy consumption and more stable security. As of today, some large cryptocurrencies are available on PoS like Ethereum (ETH), Polkadot (DOT), Solana (SOL), Tezos (XTZ), and Cardano (ADA). Staking on KuCoin is simple; it is known as Kucoin earn. On KuCoin Earn, users can stake multiple cryptos using different wallets. Users can stake coins either for the long term for a large reward or can choose a flexible agreement model which allows users to stake or unstake funds without any restrictions. KuCoin also enable a unique feature known as soft staking, by which users can earn rewards without locking their funds; they have to hold them in the account. This feature allows users to manage their profile while earning passive income, although the reward will be lower than normal staking conditions. 

If we talk about staking coins, BTC, DOGE coin, and USDT cannot be staked as they work on the PoW model. Still, it doesn’t matter, as many stable cryptos with high market capital can be staked on KuCoin like Ethereum 2.0, Tezos, Icon, Algorand, Cosmos, etc. To start staking at KuCoin, you must sign in or log in to your KuCoin account, click on the earn tab, choose your desired crypto, enter the amount you want to stake, and start staking.

Staking On Ethereum

Ethereum foundation has dropped a PoS version known as Eth2; this transformation is known as the merge. Eth2 is in the last stage of development and isn’t live yet, but users can still stake Eth token on the PoS model. Staking Ethereum at KuCoin is much faster and easier, and newbies can easily stake Eth, thanks to the friendly user interface of KuCoin. 

Conclusion

Staking is becoming more and more common among crypto holders due to a safe pathway and high reward. Maybe it’s the right time to log in and start staking coins at KuCoin Earn.