Staking
Staking is a process that lets users earn returns on their cryptocurrency holdings. Users can stake their tokens by locking them in their crypto wallets or on crypto exchanges. The blockchain then uses the tokens held or staked in such interfaces to support its operations and security.
Unlike trading cryptocurrencies on exchanges to generate profits, staking offers a less risky and more convenient way for users to put their digital assets to work and earn passive income. Only cryptocurrencies designed on blockchains with a Proof of Stake (PoS) consensus mechanism can be staked. Users earn rewards for staking whenever a new block gets added to the blockchain, resulting in the minting of new cryptocurrency tokens.
Disclaimer: The information on this page may come from third parties and does not necessarily reflect KuCoin’s views. It is provided for general reference only and should not be interpreted as financial or investment advice.
Virtual asset investments may involve risk. Please carefully assess the product risks and your own risk tolerance. For more information, please refer to our Terms of Use and Risk Disclosure.