The crypto market offers a wide range of options on how to generate income using digital coins. That may be intensive daily trading using bots, it can be long-term investments in some projects, or it can be a way to generate passive income – staking cryptocurrency. This opportunity is the way to earn cryptocurrencies with little risk and minimal knowledge. How does it work, and what is the top cryptocurrency for staking? Let’s talk about it.
Crypto Stake – What is It?
Suppose you have some digital coins in your wallet, but you can’t dare to trade them because of a lack of knowledge and experience. So you can lock your assets on a crypto platform and do nothing else but wait for the locking period to end. When it happens, you get your coins back plus additional coins as a bonus. When holding assets in a locked period, you provide liquidity to a platform while at the same time collecting bonuses that are accrued to your account when the staking period ends.
Each platform has different lock-up terms and the size of bonuses, so be careful when choosing a platform. WhiteBIT offers 40 crypto lending with a choice of assets and duration of locking ranging from 10 days to a year. The more extended period you select, the higher your cryptocurrency earnings will be. Picking an underlying asset is crucial here. The more liquidity a coin has, the less you risk.
Many platforms try to attract stakers by offering high rewards for locking little-known assets. But you should not be beckoned by super returns, and remember that the market is unstable, and if the asset’s value drops significantly during the staking period, you will lose money.
Some of the most appropriate coins for staking cryptocurrency:
- Ethereum
- Tamadoge
- Cardano
- Polygon
- Solana.
To succeed in staking, pay attention to the platform you pick. It is advisable to stake coins on trusted crypto platforms that comply with the obligations, returning your coins and bonuses for staking. That means an exchange must execute its commitments once the staking contract is over and pay you bonuses on top of the coins you get unlocked. Try the WhiteBIT platform and read more about its crypto lending plans on the WhiteBIT blog.
