The crypto market is very volatile, which can cause potential returns to be very uncertain. However, there is way to achieve a predictable return, which is staking. But what is staking? And how do you stake via KuCoin? You can read about that in this article.
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What is staking op KuCoin?
Staking your crypto means locking in your crypto to receive an additional return on it. By staking you can sometimes receive additional returns of hundreds of percent on your crypto.
Previously, staking your crypto was very complicated, as you had to do this in the blockchain networks yourself. However, exchanges are making it a lot easier for you these days. More and more exchanges are offering stake and you don’t need any real technical knowledge for it anymore.
One of the exchanges that offers stake is KuCoin. The exchange from Seychelles, which was founded in 2017, offers you the opportunity to earn an additional return on numerous coins and tokens through their program ‘KuCoin Earn’.
How to stake op KuCoin?
Getting started with stake is very easy at KuCoin. First of all, it is convenient to already create an account at KuCoin, and in addition to that, to already buy the crypto you want to go on stake. When you have done that, you can follow the next steps:
- In the menu at the top of your screen, you will see ‘Earn‘. Hover your mouse over this and then click on ‘KuCoin Earn‘.
2. You will now see the list of options listed. Find the coin you want to stake.
3. Click on ‘Subscribe‘, behind the coin you want to stake.
4. Next you need to fill in the details, for example how much you want to stake. Then click on ‘Subscribe Now‘.
Congratulations! You are now staking. From now on you will receive an additional return on top of your crypto.
What coins can you stake on KuCoin?
Through KuCoin, there are a lot of different coins and tokens to stake. You can choose from as many as 59 different coins. The selection ranges from large coins, such as Bitcoin, to smaller coins, such as Lossless.
How much can you earn by staking?
The return you can receive from staking at KuCoin depends on which coin you stake. So in total there are 59 different coins available, and they all give you different returns.
The table below shows the returns on some of the larger coins available through KuCoin Earn:
A complete listing of all coins, along with their returns, available through KuCoin Earn can be viewed at this link.
USD Coin (USDC)
Near Protocol (NEAR)
When do you receive stake rewards?
At KuCoin Earn, you will receive your stake rewards automatically. The rewards will be paid into your wallet automatically, without you having to do anything. This happens once every 24 hours. So if you receive an APR of 20% per year, you will receive about 0.05% in rewards per day. You can also choose to put this into the stake every day, thus increasing your rewards in the long run.
Can you stake Bitcoin and Ethereum on KuCoin?
Yes. Both Bitcoin (BTC) and Ethereum (ETH) are available through KuCoin Earn. For Bitcoin, flexible stake is available, on which you can receive a return of 1.5% per year. For Ethereum, there is both fixed and flexible stake available. On the fixed stake you receive a return of 5.35% per year, and on the flexible stake you receive a return of 1.5% per year.
How are staking rates calculated on KuCoin?
KuCoin, like most other exchanges, also does not disclose anything about how the interest rates at KuCoin Earn are determined. However, if you look in the overview you will see that the larger coins often have a lower return than the smaller coins. This is just not always the case. It is also notable that you often receive a higher return if you choose to actually lock in your coins for a predetermined time.
What are the risks of staking on KuCoin?
The risks of staking at KuCoin Earn are basically the same as staking any other way. You are locking in your coins for a certain amount of time, which makes you a lot less flexible with your coins. This causes you to be less able to trade as quickly.
When a sudden abrupt drop occurs, it takes longer before you can act on it. Sometimes you can’t even trade at all, if you have your coins fixed for 90 days for instance.
Imagine, for example, that you were staking LUNA when the huge drop started. Then you might have lost everything, because you would have been too late in trading. After all, things were moving very fast. Such a scenario is not unthinkable.
So an abrupt drop, or any such case, where you can’t act quickly, can cause you to lose your returns, or even make a loss.
So also with KuCoin, it is possible to receive an additional return on your crypto through stake, namely through the platform KuCoin Earn. The returns you can receive on your crypto at KuCoin Earn range from at the lowest 0.4% per year and at the highest 101.19% per year.
Unfortunately, stake does not come without risk. Because of the reduction in flexibility, your entire return may be lost due to abrupt declines. As a result, you may even end up making a loss while you stake.
Thus, stake is certainly not without risk. However, if you are planning to hold on to a particular currency for an extended period anyway, staking can certainly be a great way to increase your position.