Cryptocurrency can be an interesting way to earn a return on your money, just like how savings in the bank used to earn interest. Unfortunately, interest rates in traditional bank accounts today are often too low to be attractive. Therefore, people are looking for alternatives to grow their money, such as staking cryptocurrency. In this article, we will take a closer look at staking rates on BCM.
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What is staking on BCM?
Staking means “deploying” your cryptocurrency to receive an additional return. This is done by using your coins or tokens to participate in securing a particular cryptocurrency’s blockchain network. As a reward for helping to secure the network, you receive a percentage of the transaction fees processed on the network, or a fixed amount in the form of additional coins or tokens. This can be a way to generate passive income with your cryptocurrency.
On the Dutch exchange Bitcoin Meester, founded in 2017, you can stake 26 different cryptocurrencies. This means you can use these cryptocurrencies on the exchange to participate in securing the blockchain network of these coins, and receive a reward for doing so. For example, if you staking 1000 Cardano and receive a 5% staking reward, you would receive an additional 50 Cardano coins after the staking period.
How to stake on BCM?
Setting up staking on BCM is simple. Before you begin, make sure you are logged into your BCM account through the website. It is also recommended that you buy the cryptocurrency you want to staking in advance.
To start staking:
1. Click on “staking” in the menu.
2. You will now see an overview of all available coins that can be staked.
3. To the right you will see the options “Start staking” and “Stop Staking” for each coin.
4. Choose the coin you want to staking and click “Start staking”.
5. You will now receive a staking reward every day.
6. If you want to stop staking, for example to sell your coins, click “Stop Staking”.
Congratulations! You have now set up staking on BCM. You don’t need to do anything else except to check occasionally how your staking is going.
What coins can you stake on BCM?
On BCM, you can staking 26 different cryptocurrencies. Below is a list of these cryptocurrencies with their staking rates:
How much can you earn by staking?
On BCM, staking returns do not vary that much. The highest staking return available is 5%, and the lowest return available is 0%. You can view the current staking rates on BCM s website, but keep in mind that they can change every day.
Percentages are recalculated daily and therefore can change every day. It is also important to note that the quoted staking rates are annualized (APY). This means that the staking rate is expressed as a percentage per year.
When will you receive stake rewards?
At BCM, staking rewards are calculated and paid out every 24 hours. These rewards are paid out in your staking wallet, which means that your staking balance is automatically increased. If you want to receive the staking rewards in your normal wallet, for example to sell them, you have to stop the staking function.
Then you can remove your entire stake from the staking wallet and move it to your normal wallet. If you want to keep part of your stake to staking further, you can move it back to the staking wallet. Keep in mind that if you quit staking, you will not receive the rewards from the past 24 hours.
What are the risks of going on stake on BCM?
The risks of staking on BCM are basically the same as the risks of staking on any other exchange. This is because you lock in your value when you staking. This means you cannot sell it quickly and therefore cannot sell it during abrupt price drops. As a result, your staking returns may not outweigh the price drop.
For example, if you staked LUNA when the price started to fall, you would have lost on your investment, guaranteed.
Can you stake Bitcoin and Ethereum on BCM?
Fortunately, you can earn returns on Bitcoin (BTC) and Ethereum (ETH) by “earning” on BCM. Both cryptocurrencies are available in BCMs earning program.
How are the stake percentages calculated on BCM?
BCM determines the staking rate for each cryptocurrency that can be struck on the exchange. This rate is determined based on several factors, such as:
- Risk factor: BCM takes into account the volatility of the cryptocurrency, meaning they take into account how much the price can fluctuate. If a cryptocurrency is volatile, this can mean a higher risk to staking, and this can lead to a lower staking rate.
- Complexity of the staking process: The more difficult it is to staking a particular cryptocurrency, the lower the staking rate may be. For example, this may be the case if it requires a lot of technical knowledge or many steps to staking it.
- Liquidity during the staking period: If a cryptocurrency is difficult to sell during the staking period, this can lead to a lower staking rate. This is because you cannot react quickly to price changes if you cannot sell your cryptocurrency.
Staking rates can fluctuate depending on the above factors. In rare cases, the reward for staking for a specific coin may even drop to 0%. It is important to stay abreast of these changes to ensure your staking remains at a profitable level.
Conclusion
BCM offers the ability to staking through the Dutch exchange. There are 26 different coins available with staking yields of up to 5.50%. Keep in mind that there are always risks associated with staking, but if you plan to hold on to your coins for a longer period of time, it may certainly be worth considering staking as an option to generate additional income.