Staking is a process by which traders or investors put their assets on hold to earn rewards and interests against their staked currency. Coinspot is a viral cryptocurrency exchange, with two and a half million users and growing. The Coinspot staking feature allows 20+ cryptocurrencies for betting, earning up to 78 per cent APY.DOT, SOL, ADA, ETH, and AXS are other crypto assets for staking.
As the price of Bitcoin and other currencies continues to rise, more and more people are looking for methods to cash in on the trend. One popular way to do this is through “staking” crypto.
How Does Staking Work?
Staking can be done on a Proof of Stake(PoS) blockchain. This is more energy efficient than Proof of Work(PoW) algorithms such as BitCoin, among many others. Transactions can be done using the Proof of Stake mechanism of blockchain. Statistically, transactions are validated by staking coins, and rewards are earned in exchange.
These staked cryptocurrencies will be locked until they are unstacked. Although it seems complex, staking has been made simpler by crypto exchanges such as Coinspot for the average investor. Here is some more information about staking on Coinspot.
Cryptocurrencies Available for Staking on Coinspot
In November 2021, the staking feature on Coinspot was launched, which allows the investors on the platform holding the cryptocurrencies to stake and earn rewards in return. Currently, they have 22 cryptocurrencies that are eligible for betting. However, Coinspot has continuously added more assets and cryptocurrencies that can be staked. The 22 cryptocurrencies that can be staked on Coinspot are:
Fantom (FTM)
Avalanche (AVAX)
Cardano (ADA)
Kusama (KSM)
Cosmos (ATOM)
Elrond eGold (EGLD)
Tezos (XTZ)
Solana (SOL)
Harmony (ONE)
Polkadot (DOT)
Kava (KAVA)
Tron (TRX)
Polygon (MATIC)
Terra (LUNA)
Zilliqa (ZIL)
Algorand (ALGO)
Axie Infinity (AXS)
Wanchain (WAN)
Binance Coin (BNB)
Flow (FLOW)
Veracity (VRA)
Cronos (CRO)
Staking Rates On Coinspot
Staking rates are calculated based on the Annual Yield Percentage (APY). The below table contains the APY shown for each of the crypto assets available for staking on Coinspot. These Coinspot Staking APYs, however, are subject to fluctuations depending on how the market is behaving.
Cryptocurrency And Interest Rate (APY)
Fantom (FTM): 4.2%
Avalanche (AVAX): 6.9%
Polygon (MATIC): 12.8%
Cardano (ADA): 5.1%
Kusama (KSM): 18.5%
Elrond eGold (EGLD): 12.1%
Cosmos (ATOM): 10.9%
Terra (LUNA): 8.1%
Harmony (ONE): 9.2%
Tezos (XTZ): 4.2%
Harmony (ONE): 9.2%
Polkadot (DOT): 12.5%
Tron (TRX): 5.9%
Zilliqa (ZIL): 15%
Algorand (ALGO): 6%
Axie Infinity (AXS): 78%
Wanchain (WAN): 6.3%
Binance Coin (BNB): 5%
Flow (FLOW): 6.5%
Veracity (VRA): 19.2%
Cronos (CRO): 11.1%
Kava (KAVA): 23.5%
Staking Fee on Coinspot
Coinspot staking doesn’t charge fees for staking cryptocurrency assets on their exchange.
Risks Associated with Coinspot Staking
Like any other speculative instrument, cryptocurrencies depend on market behaviour and are subject to fluctuations. Risks associated with staking depend upon the volatility of that asset. If the asset’s underlying value drops, the rewards gained from that staked cryptocurrency would not be enough to compensate for losses incurred. Therefore, keen market research is imperative before investing in these contracts.
Conclusion
Trading and investing in cryptocurrencies are not as hassle as they are supposed to be. There are a lot of good crypto exchanges facilitating all the services. However, there is the risk that comes with all investments. Staking is not more or less riskier than other forms of investment. Interest earned helps to offset some of the losses if the price of the cryptocurrency drops and even if it is not enough to cover the entire loss.
The information contained on this page is provided on an “as is” basis with no guarantees of completeness, accuracy, usefulness, or timeliness. As the information contained on this page is provided by an independent third-party content provider and hence there are no warranties or representations in connection therewith.
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