The first digital assets that emerged in the market, like BTC and ETH, were received through mining. Mining is the way to get crypto coins that require using advanced computers and equipped room for their placement, specific ventilation conditions, and regular maintenance. That is too costly for many people since miners are expensive and electricity costs are enormous. Over time, mining one BTC has become more complex, increasing expenses. Crypto assets generated through mining are based on the Proof-of-Work consensus protocol.
Today, many new crypto coins that emerge in the market are developed on the Proof-of-Stake protocol, which has its advantages:
- Cryptocurrency staking is much less expensive than mining, and it does not require advanced equipment or additional electricity expenses; all that is needed is a computer and connection to the Internet.
- PoS protocol offers a much bigger throughput and much cheaper transactions.
- PoS is eco-friendly.
- Simple and available for anyone.
So if you are not into the peculiarities of mining and all those technical details, you can try staking and earn interest crypto. See how it works.
Cryptocurrency Staking on WhiteBIT
Essentially, staking is putting your crypto coins as a deposit on a crypto exchange and receiving yield in return. Your crypto earn will vary depending on how long you keep your crypto in staking. WhiteBIT offers 40 staking plans ranging from 10 to 360 days with different underlying crypto assets. It is recommended to pick the most reliable digital asset, such as BTC, SOL, etc., because if the asset’s price drops until the staking period expires, you will bear losses. The more reliable asset you choose, the less risk you take.
To earn interest on crypto, first register on WhiteBIT and move coins to the main account. Then pick a staking program and lock your coins. Make sure you understand the risk you take. It is better to begin with a small staking period and increase it over time.
Notice that if you take back your assets from the staking program before the plan expires, you will not receive rewards. Some exchanges also impose penalties for those users who withdraw cons beforehand. To learn more about staking, go to the WhiteBIT Blog and read the articles on this topic.