Everyone loves the idea of passive income, but only a few really give it a shot. People in the cryptocurrency game are also known for their passive income and massive profits. Staking is one of the ways that crypto traders make passive income; however, not all cryptocurrencies allow staking. Many platforms do not allow staking either that is why we suggest Kucoin. Kucoin is a great crypto trading platform where you can stake your coins and deal with more than 500 cryptocurrencies, including Luna, USTC, and KCS. Allow us to enlighten you on Kucoin’s staking.
What Is Staking?
Cryptocurrency staking is the act of freezing or locking your assets. These assets are the coins you own. When you stake your coins, you freeze them for a set amount of time, which can be a week, a month, a few months, a year, or even longer. In return, the staker is rewarded with cryptocurrency, similar to charging interest on loans or earning dividends on shares.
Once you lock your coins, you can not move, sell, or trade them for the set time.
Staking improves the stability of a cryptocurrency as the staked coins can not be tampered with by anyone. Staking also verifies transactions done on the cryptocurrency.
Types Of Staking
There are two types of staking, hard staking and soft staking. Hard staking is when the coins are staked for a fixed amount of time. During this time, the user can not interact with the staked coins, and the rewards earned are dependent on the number of coins staked. On the other hand, soft staking is much more flexible. Soft staking allows the user to stake their coin for the day, but they can remove their staked coins at any time; this makes the staking flexible and more appealing to everyone. Not every platform allows soft staking, but Kucoin does. On Kucoin, soft staking rewards are calculated based on the number of coins staked, much like interest. The rewards are given out daily.
Hurdles Of Staking
Many cryptocurrencies can not be staked. An example of such a cryptocurrency is Stellar Lumen XLM. However, some cryptocurrencies allow staking, soft and hard. These cryptocurrencies include Icon, Ethereum 2, Tezos, Algorand, and the like. Platforms are also an issue because not every platform allows soft staking.
Is Soft Staking Worth It?
Soft staking is very appealing to everyone and definitely worth it. You do not have to freeze your coins for years, months, or even weeks. You can stake your coins daily and reap the benefits on a daily basis.
In the end, staking is quite rewarding, but soft staking is even better for beginners. Kucoin allows both staking types, making it a great crypto trading platform for beginners and veterans. On Kucoin’s platform, you can stake cryptocurrencies like Ethereum 2. Some cryptocurrencies like Stellar Lumens XLM do not allow staking at all. Kucoin’s soft staking rewards users daily, and their coins are not frozen for long periods.