🏛️Staking

All blockchains share a common requirement - transactions need to be validated. Bitcoin, for instance, accomplishes this through a process called mining, which is known to consume vast amounts of electricity (Proof-of-Work). However, there are other consensus mechanisms available for validation. One of these mechanisms is Proof-of-Stake (PoS), which has several variations and hybrid models. We will refer to all of these as staking for simplicity. Coin staking provides currency holders with decision-making power on the network. By staking coins, they gain the ability to vote and generate income, similar to how interest is earned for holding money in a bank account or investing it in the bank.

What are the benefits?

Staking coins eliminates the need for continuously purchasing expensive hardware and consuming energy, which is a significant advantage. The system provides guaranteed returns and a predictable source of income, unlike the proof-of-work system, where coins are rewarded through a mathematical process with a low probability of paying out. Another benefit is that the value of staked coins does not depreciate like ASICs and other mining hardware. Staked coins are only affected by market price fluctuations.

How does it work?

Staking methods typically involve holding coins in a wallet or locking them in a smart contract (masternodes). Some coins introduce randomness to the staking and voting process to make it difficult for bad actors to manipulate outcomes. The process can be similar to a lottery, where the number of crypto coins held is equivalent to holding a given number of lottery tickets. Staking systems can also allow delegation, where individuals delegate their voting rights and earned income to a trusted party. Those delegates earn all the rewards for block validation and pay dividends to their loyal supporters for their vote.

Staking CBEX

Crypto Staking is a novel way to earn passive income in the crypto world. It enables users to lock their assets on our platform and receive rewards without having to sell their tokens. This allows them to earn a passive income while still owning their tokens. By locking tokens on our platform, users can receive rewards based on the staking duration and the number of token stakes. To participate in CBEX staking, users must first stake CBEX tokens on our linked crypto wallet. They can then send the tokens to a staking contract and lock them for a specified period. Once the staking platform locks the CBEX tokens, users begin earning rewards.

As more people, particularly institutional investors, recognize the profitability and efficiency of the crypto market, staking is gradually becoming a popular way of earning passive income by simply staking coins in a wallet. Stake in the CBEX Hybrid Exchange and earn CBEX tokens as rewards. Due to the specific technical crypto knowledge and compliance requirements associated with staking cryptocurrencies, including those who lack technical knowledge of CBEX, staking and receiving rewards may seem daunting. In response to the growing demand for crypto staking, this is the perfect place to earn a passive income through staking.