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Are you trying to find out how to stake on KuCoin?
We will explain all about KuCoin staking shortly, but first—
How Does Staking Work?
The first thing you need to understand is the concept of Proof of Stake aka PoS and Proof of Work aka PoW.
So, what is proof of stake?
The Proof of Stake is a consensus mechanism for blockchain networks.
In simple words, a person can mine or validate transactions depending on the number of coins they hold.
In this mechanism, we commit tokens for a set period for a chance to create the next block of transactions. The aim is to keep the chain alive.
What is proof of work?
Proof of Work is a consensus mechanism in which members of a network solve complex mathematical problems.
It gets used to mining tokens and validating new transactions.
You also need to know that in a PoS mechanism, a blockchain validator is someone who verifies transactions on a blockchain, after which the transactions get added to a ledger.
What are Staking Pools?
Staking pools help stakeholders combine their resources to get rewarded quickly.
Let’s understand this concept.
You always need a respectable number of coins on which you are staking. This means you mustn’t stake when you have only 2 coins.
But in the real-world, only a few people meet the criteria.
Does this mean staking is impossible for people with fewer coins?
Well, this is where Staking Pools come in.
Say you have 4 coins, and your friend has 10 coins. With Staking Pools, you can combine the number of coins and, hence, use it for validating new blocks to earn rewards.
This means you earn gains using other user’s coins.
Is Staking the Same on Every Blockchain?
Well, you can undertake various methods. For instance, you can stake through the regular PoS, Liquid PoS or Pure PoS of Algorand.
In a regular PoS, you can put a certain amount to stake, which will earn rewards.
With a Liquid PoS, you can loan your validation rights to other users while keeping the ownership. This gives you voting powers over the blockchain.
In Pure PoS of Algorand, which is built on Byzantine consensus, the influence on the choice of the block is proportional to the stake in the system.
This system works when most of the money is in honest hands.
Here, the biggest takers have the power to select over which blocks to stake, and all users can get selected to propose and vote.
There is only one common prerequisite to all these mechanisms: you need to own a respectable number of coins to stake.
You can also use Staking pools to get quicker rewards.
Which Cryptocurrencies Can Be Staked at Kucoin
Kucoin has a dedicated website like Staking Pool where you can stake and earn rewards.
They also offer limited time subscription offers.
The Staking Pools of Kucoin aka “Pool-X” is an all-in-one destination to earn a passive income.
So, what cryptocurrencies can you stake on Kucoin?
Well, Kucoin supports 15 distinct coins using which you can stake.
The list includes; Atom, Luna, Link, Ksm, Anc, Matic, Eos, Tomo, Vsys, Wan, Trx, Zil, Hydra, OUSD, and Ada.
What is Soft Staking?
Soft staking is an exciting mechanism through which you can get staking rewards without ever locking your funds.
What makes soft staking unique?
Say you are staking with a coin. Now, you need to lock the coins to earn the rewards.
But soft staking changes the entire dynamics of this process. When you use soft staking, you needn’t lock your coins. This means you can use the coin whenever you want and still earn passive income.
The best part about this method of staking is users get rewarded daily without having to wait for a period to receive the rewards.
Pros & Cons of KuCoin’s Soft-Staking Program
Now, let’s discuss the good and the bad of the Soft-staking program offered by Kucoin.
Well, if you look at it from a user’s perspective, the Soft-staking program is incredible.
Say you are someone who doesn’t know the jargon of staking. The soft-staking program is probably the best way to get started on staking.
You needn’t worry about the security and the wallet because Kucoin takes care of it. You also get daily rewards without stressing on the locking period.
Now, if you look at it from the company’s perspective, there are some concerning aspects.
For instance, the centralisation of power gives Kucoin too much power over many projects.
The non-participants require removal of the token from exchange.
You are never in complete control of your coins, and there is a mighty risk of hackers trying their best to exploit Kucoin.
How Much Can I Earn with KuCoin Staking?
Well, the straightforward answer to this question depends on the coin you are staking. This is because coins have a unique APR.
For instance, Polkadot has 13.46% whereas ADA has 4.48%.
You can earn more with the coin that has massive potential to grow. All you need to do is stay on top of the trends and numbers.
Is KuCoin Good for Staking?
In the above sections, we discussed Kucoin offers a plethora of amazing features through its staking pool and soft staking program.
If you are someone who isn’t interested in solo staking, Kucoin is one of the best platforms for staking.
Where Do I See My Rewards?
You can see a list of all the rewards you have earned by clicking on “Assets Detail” from the “Assets” option.
How Often Does KuCoin Pay out The Staking Rewards?
The redemption period varies from coin to coin.
Some have one day, whereas others have up to 28 days. You can stake and un-stake any time and take out the initial investment.
Can You Stake ADA on Kucoin?
Yes, you can stake ADA on Kucoin’s Staking pool; Pool-X. ADA has one of the shortest redemption periods of just 24 hours.
Can you stake SOL on Kucoin?
No, Kucoin doesn’t support the staking of SOL on its platform.
But you needn’t worry because it’s only a matter of time before SOL gets added to the list of coins you can stake on Kucoin.
There you have it. Now, you know how to stake on Kucoin. You also understand Kucoin staking offers you many exciting advantages to help you earn handsome rewards.
Kucoin’s soft-staking program is a great way to make a passive income without worrying about the locking period. Bottom-line: You can stake on Kucoin to earn daily rewards.