In the early days of the crypto world, there were two types of earning systems known, namely investing in a crypto asset or mining crypto. However, as of today, staking has managed to promise a new earning system to many users.
In this article, we will try to give all the details about staking in the crypto world, such as what staking means and how staking is done.
What is Staking?
Staking is a system of earning by supporting the blockchain operations of a crypto asset.
In fact, the staking process is a system similar to crypto money mining that almost everyone knows, but the working logic is different.
As is known in crypto mining, there are powerful processors and energy sources. In crypto mining, which is based on the protocol called Proof of Work, operations are supported and profit is provided by supporting blockchain calculations with powerful systems.
Staking is also a kind of crypto mining, but this system works according to the Proof of Stake protocol. To put it more clearly, you do not need powerful processors and energy resources to be able to staking, and profits are made with owned crypto assets.
Promised gains are achieved by renting the crypto assets owned in staking for a sufficient period of time or allowing them to be used temporarily.
How to Staking?
The first condition to be met for staking is to have a certain amount of crypto assets to be staked.
If the condition of owning a sufficient amount of the crypto asset to be staked is met, the next step is to determine the platform to be staked.
After the platform is determined, it starts to make a profit by allowing the owned crypto asset to be used in staking transactions, that is, by renting the owned assets or allowing them to be used for a while.
For those who are curious about the answers to the questions of how to stake, how to stake in a more concise and simple way, staking is done as follows:
- Staked coins and tokens are researched and the appropriate ones are selected.
- The desired amount is purchased according to the minimum amount required for staking.
- The platform to be staking is determined.
- Assets held for staking are leased by being locked in a wallet or taking part in a staking pool.
- It starts to earn as much as the staking period.
In staking transactions, the asset has a minimum lock-in period or lease period. Since gains will be made after these periods expire, if the stake is canceled before time, that is, if the staking process is exited, there will be no gain and there will be a risk of losing some of the owned assets.
Where Is Staking Taken?
There are many alternatives for investors or users who want to staking. Because staking is supported by many platforms.
If staking is desired, staking can be done from the following platforms:
- Crypto exchanges that provide staking services
- DeFi platforms that provide staking services
- Crypto service platforms dedicated to staking transactions
- Cold wallets with staking
For example, in Binance, one of the most used crypto exchanges in the world, there is a staking opportunity for many crypto assets under the name of Binance Staking. Likewise, Gate.io exchange also provides staking services.
Frequently Asked Questions About Staking
There are many frequently asked questions and many curious subjects on the internet about staking transactions. We have created this section specifically for the most frequently asked questions about staking and staking, and we will constantly update it for you.
What is Staking or What Does It Mean?
Staking has the meaning of English as a word such as bet, support, interest, but in the crypto world, staking is a system of earning through a kind of rental method over cryptocurrencies and tokens that have the Proof of Stake protocol.[
How to Proof of Stake?
Proof of Stake is not done because Proof of Stake, abbreviated as PoS, is a protocol. Thanks to this protocol, staking is done and gains are made in return.
What is Stake Pool?
The Stake Pool is the name given to the pools where staking is done and can also be called the Stake Pool. Platforms called Stake Pool, or Stake Pool in Turkish, consist of users who want to stake, and each user provides their own share of earnings.
What Does StakeHolder Mean?
SteakHolder means shareholder or shareholder. Anyone who wants to stake or make their assets in staking transactions and provides this is called StakeHolder.
Is Staking Interest and Is Staking Haram?
The Presidency of Religious Affairs will give the most accurate and healthy answer to such questions, but if the logic is established, if a business machine owner rents this machine for a certain fee, a crypto asset owner rents the amount he owns for a certain fee and opens it for staking, provided that the work is done. Therefore, the answer to the question of whether stake is interest will probably be no and staking will not be considered haram. The answer to the question of whether staking is permissible or is staking a sin is not ours, but the answer of the Presidency of Religious Affairs.
How Much Does Staking Earn?
Depending on the crypto asset staked and the duration of the stake, there is a separate amount or rate of earnings for each crypto asset. Therefore, in order to know how much will be earned with staking, staking should be calculated after the relevant crypto asset is detected.
How to Cancel a Stake?
Before starting the staking process, you can both find out how long the staking period will be and how much profit will be made by calculating the staking process, as well as the amount of loss you will experience if you cancel or disrupt the staking process. All you have to do is request a stake cancellation if you are willing to accept this loss.
What Are Staking Exchanges?
Many crypto exchanges offer staking services, but if you have a hard time choosing, we can make two recommendations.
Binance exchange provides staking service as the most used crypto exchange in the world. Follow these steps to staking on the Binance exchange:
- Log into your Binance account. If you don’t have a Binance account, click here to create one.
- To do Locked Staking, go to https://www.binance.com/tr/pos, to staking according to DeFi Staking, that is, Decentralized Finance Staking, go to https://www.binance.com/tr/defi-staking and go to the minimum Identify a crypto asset for yourself by examining information such as amounts, earnings percentages.
- If you are not the owner of the crypto asset you want to stake, buy by considering the minimum amount.
- Finally, come back to the Locked Staking or DeFi Staking page and complete the transactions by clicking the Stake Now button next to or below the crypto asset you want to staking.
Gate.io exchange offers the chance to staking with more suitable investment amounts with its staking service, especially since it includes crypto assets that are very affordable and new in the market. Follow the steps below to staking with the Gate.io exchange, which gives you the chance to stake with the HODL & Earn header:
- Log into your Gate.io account. If you do not have a Gate.io account, click here to create one.
- After logging in to your account, go to https://www.gate.io/en/hodl and make your crypto asset decision by examining both the crypto assets that are currently in service for staking and those that will be newly opened for staking.
- If you do not have the crypto asset you want to staking, make a purchase, then return to the same page and complete the steps by clicking on which crypto asset you want to staking.
What is Locked Staking and DeFi Staking?
Locked staking is the most widely used staking process and is the staking of assets by locking them into a wallet and a pool.
DeFi Staking, on the other hand, is a staking service specific to the DeFi system, called the decentralized finance system, and it is a staking process that allows the assets owned to be used in transactions such as lending, excluding buying and selling transactions.
What is Cold Staking and How Is It Done?
Cold Staking is staking transactions made through cold wallets and is also called Cold Staking. While the assets held in this type of staking are locked to a wallet such as Trust Wallet or a hardware cold wallet such as Ledger, Trezor, they are opened to online transactions, providing a chance for staking.
What Are Staking Platforms?
Staking platforms are private platforms that provide staking earnings by creating stake pools separately from crypto exchanges and DeFi platforms. There are many staking platforms, and platforms such as Stake Capital, MyCointainer are the most well-known.