Crypto Staking: How It Works

Cryptocurrency staking is a process in which owners of digital assets temporarily blockchain their coins to support a blockchain based on the Proof of Stake (PoS) consensus algorithm or variations of it, such as Delegated Proof of Stake (DPoS). In exchange for providing their coins for this purpose, participants in the staking receive a reward in the form of new cryptocurrency tokens.

The basic principles of staking as a way to generate income:

• Network Support: Staking participants play an important role in decentralized networks by acting as validators that verify and validate transactions, which contributes to the security and stability of the blockchain.
• Reward: Users receive additional tokens as a reward for supporting the network. This reward can be viewed as analogous to interest income on invested assets.
• Returns and risks: Returns from staking vary across blockchain networks and can depend on factors such as the number of coins blocked, how long they are held, and the inflation rate of the cryptocurrency. It is worth considering the risks, including possible price fluctuations of the staked assets and penalties for incorrect transactions (slashing).

Examples of popular stealth cryptocurrencies:

• Ethereum (ETH) – Since the transition to Ethereum 2.0, the network has become one of the largest networks in the world to actively utilize staking.
• Solana (SOL) – A high-performance blockchain platform that utilizes the Proof of Stake algorithm. Solana staking helps maintain the speed and scalability of the network, and participants receive rewards in the form of SOL.
• Tezos (XTZ) is one of the first cryptocurrencies to support the Delegated Proof of Stake (DPoS).. In Tezos, users can delegate their tokens to validators and receive rewards even without having a large amount of coins

Stacking continues to gain popularity as it provides an opportunity to earn passive income while supporting blockchain networks.

Example of cryptocurrency staking on EXMO platform

EXMO is a cryptocurrency exchange established in 2013 that provides a wide range of services for trading cryptocurrencies. Initially focused on the European market, the exchange is actively developing in the African market, offering its functions to users in Nigeria. EXMO attracts users with its user-friendly interface, low commissions and an extensive selection of trading pairs.

One of the platform’s products is its own token EXMO Coin (EXM), which gives users many benefits such as reduced commissions, access to exclusive features and participation in referral programs.

EXMO offers the following financial products:

• Staking EXMO Coin (EXM): The exchange provides the ability to stake your own EXM token. This allows users to earn passive income simply for storing EXM tokens on the exchange balance. To participate in staking, users need to have a certain minimum number of EXM tokens. Rewards for staking are credited automatically, usually at a certain frequency (e.g. once a month).
• Staking other cryptocurrencies: In addition to EXM, EXMO supports staking of other popular cryptocurrencies such as USD Coin (USDC), Ethereum (ETH), Cardano (ADA) and Polkadot (DOT). An important advantage is the ability to to purchase staking cryptocurrencies for the Nigerian naira (NGN) directly through the EXMO app.

Stakein’ terms:

• Flexible and fixed plans: The platform offers different types of staking plans, including flexible (with the ability to withdraw funds at any time) and fixed (with a set lock-in period for funds).
• Yield: Interest rates vary depending on the selected cryptocurrency and staking plan. Generally, fixed plans provide higher rates compared to flexible plans.

Special Stakin’ Conditions:

One of the key advantages of the EXMO platform is the regular provision of special offers for staking, valid for a limited period. For example, in September 2024, several programs are available to EXMO users, including an exclusive offer – a one-day bitcoin staking promotion with maximum yield. The annualized interest rate on this one-day staking reaches an impressive 1000%! For more information on current special offers on cryptocurrency staking, including terms and conditions for Nigerian users, please visit the link: https://exmo.com/earn

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How to start crypto stake:

1. Register on the EXMO platform and pass the verification procedure.
2. Refill the balance with the desired cryptocurrency.
3. In the financial products section, select the appropriate stake plan and confirm your participation.
4. Receive rewards depending on the selected plan. Rewards can be automatically reinvested or withdrawn by the user.

How good is staking on EXMO?

• Convenient: The simple and intuitive interface allows users to easily start staking, even if they are new to cryptocurrency.
• Reliable: EXMO is one of the most well-known and time-tested crypto exchanges that provides a high level of security and trust.
• Additional benefits: Using the EXM token provides additional benefits such as discounts on commissions and access to unique offers.

Risks and cautions:

• Market Fluctuations: The value of EXM and other staked cryptocurrencies can fluctuate significantly, which can affect your overall profit from staking. Check current conditions before taking action
• Locking of funds: Depending on the terms of the staking, funds may be frozen for a certain period of time, which reduces their liquidity.
• Security: Despite the platform’s high level of security, there is always a risk of hacking and technical problems. Users are advised to enable all available account protection measures, such as two-factor authentication.

Concluded

Staking on the EXMO platform offers users, including those from Nigeria, the opportunity to generate passive income from cryptocurrencies, including the EXM token. Before you start staking, it is recommended to carefully read the current terms and interest rates presented on the official EXMO website, as well as assess the possible risks.