Staking crypto can let you earn interest, a thing of the past when people could actually save in the good ol’ bank account. Nowadays, these savings are negligible and we are forced to look for other places. Huobi could be one of these places.
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What is staking/Earning on Huobi?
Staking means dedicating your coins in order to receive an interest on them. Staking can be done in different ways, for example you could stake within the stake-able blockchain network (which uses Proof-of-Stake), or you can stake on an exchange such as Huobi.
Huobi lets you stake your cryptocurrency instead of just holding them. When you choose to do this, you will receive a return on your staked coins. Let’s say you stake 1000 coins, for a 10% return, this means you will receive 100 coins per year. Independent of any fluctuations in the price of the underlying coin.
What are the staking/earning options on Huobi?
Huobi offers various ways to earn passive income through crypto staking. Interests that range from 0.1% to 88% can be earned by depositing crypto to your Huobi earn account. The percentage you’ll receive will depend on the cryptocurrency you chose and the period you want to stake it.
There are four different ways to earn dividends on your Huobi cryptocurrency stack; Featured and prudent.
What is featured earning?
Users can stake cryptocurrencies that have limited-time offers and limited supplies. The offerings will depend on which cryptocurrency is trending. The time your cryptocurrency is locked varies from 7 to 90 days, depending on the staking offer you choose to agree with.
What is prudent earning?
With prudent earning you can lock and earn a mulitude of cryptocurrencies. Locking periods will depend from coin to coin. If you choose ‘flexible’ you can trade or withdraw them at any time. Because of this flexibility, the returns will be lower. When you withdraw or trade, the staking rewards will stop.
Locking periods will range from ‘flexible’ to 30 days, 60 days and 90 days. The longer the locking period the higher the reward.
How to stake/earn on Huobi?
Staking or earning through Huobi is very easy. First of all, you need to log in to the platform. Next, you want to buy the coin you want to stake or send it to the exchange if you already own it.
Assuming you already have an account and are a holder of the staked coin, follow these next steps.
- In the Huobi menu on top of your screen, you’ll see ‘Finance’. Hover your mouse over this.
- A dropdown menu will open, click on ‘Stake’ or ‘Earn’.
3. Now you see all the coins that are available to stake, or ‘Earn’. Choose your preferred coin and click ‘Stake now’ or ‘Deposit Now’.
4. Next, you will land on the screen where you have to fill in how much of this coin you want to stake or deposit.
Congratulations! You are now staking and earning through Huobi.
From now on, you will earn a return on top of the possible return you are already getting from the appreciation of your cryptocurrency.
Which coins can you stake/earn on Huobi?
On Huobi you can stake a few coins. So compared to other exchanges, there are not that many coins available.
However, Huobi does have another platform called Huobi Earn. Through this service, it is also possible to earn returns on 36 other cryptocurrencies. We list the coins you can stake and earn below;
How much can you earn by staking/earning?
The return you can get on your crypto holdings through staking will depend on which coin you stake. The interest you receive will depend on market conditions and can change over time. In the table you will find an overview of the returns that can be earned.
When do you receive staking rewards on Huobi?
At Huobi, you will receive your staking rewards daily. For example, if you stake $1000 in Solana, you will therefore receive approximately $0.10 per day, assuming prices remain the same.
Sometimes it is required to lock your coins for a predetermined time, such as 90 days. This ensures that you will not be able to withdraw your staked coins during this period, this will not affect the payout of your rewards.
What are the risks of staking on Huobi?
Unfortunately, staking is not free lunch money, because there are no such things. Staking has it own risks, but not risks specifically related to the Huobi exchange, but staking in general.
As discussed earlier, you may need to lock in your crypto for a predetermined time. For example, Huobi requires you to lock in your ELF for at least 90 days.
Although the staking return of ELF is 15% and sounds very attractive, it could be that ELF halves in value during those 90 days. Then you will be payed out 15% more coins, but they will only be worth half as much. Resulting in a capital loss just by market volatility.
Can you stake Bitcoin and Ethereum on Huobi?
Bitcoin – BTC and Ethereum – ETH can’t be staked at Huobi, unfortunately. However, both coins are available through the previously mentioned platform Huobi Earn. At Huobi Earn, you will receive a 1% annual return on your Bitcoin, and you can earn a 0.4% return on your Ethereum.
How are the staking rates calculated on Huobi?
Huobi does not share a clear formula for calculating the staking rates. However, we can assume that they use the same principles as most exchanges. It is often the case that you will receive a higher percentage on smaller coins than on larger coins. In addition you will often receive a higher percentage, the longer you stake your coins.
It is also possible to receive an additional return on your holdings on Huobi. This can be done through Huobi staking or Huobi Earn. Staking can be a great way to get an extra return on your crypto, but it is certainly not without risks. So be sure to take this into account when making your decision whether or not to stake.