When you plan to buy crypto assets and hold them long term, think about multiplying their number and putting them into staking. Staking is the best crypto-to-earn passive income option that allows receiving additional crypto from just holding crypto assets on an exchange. It is less risky compared with trading strategies but also has some nuances. For example, when picking a coin for staking, pay attention to its volatility and market capitalisation. The higher the market cap indicator, the less sensitive an asset is to the market’s movements, thus, the less volatile its price. So it is recommended to select high-cap assets such as Ethereum, Solana, Cardano, and other assets based on the Proof-of-Stake consensus.
Is it possible to stake coins that are not based on the Proof-of-Stake protocol? Yes, it is. For that purpose, use a cryptocurrency platform supporting staking features, for example, WhiteBIT. Then, you can stake such assets as cryptocurrency Ripple XRP, Bitcoin and other non-staking-based assets.
So these three cryptos are recommended to stake on WhiteBIT:
- Ethereum
- Solana
- XRP.
How to Start Staking?
Like we said before, staking is a good alternative to long-term holding. When you just hold coins in your wallet, they do not grow in number. The only benefit you receive is when the market grows, and their value multiplies. Sometimes it takes many months or even years. A good alternative is to put your coins in a crypto lending program and make income in the shortest period. By the way, the staking deadline is for you to pick. WhiteBIT offers about 40 staking programs, each with different crypto assets. If you enter the exchange and find the crypto lending paragraph, you will see a staking calculator. It requires you to enter the number of tokens you want to put in staking and pick the period. Notice, that the longer period you select, the more rewards you get in the end. Also, notice that if the asset’s price will significantly drops during that period, you take risks. So there should be something between for a start – pick the shortest period and see how it works with the minimum number of tokens locked.
Important to mention that when your tokens are in staking, you cannot withdraw or sell them. In that case, you will lose your rewards. WhiteBIT does not impose fines for such actions, but it does not make sense to sell tokens when they are locked because you lose your bonuses immediately.
At the end of the crypto lending plan, you receive your initial number of tokens back plus rewards in the same tokens. Read more about passive income crypto options on the WhiteBIT blog.