Proof of stake (PoS) is a consensus algorithm for processing transactions and creating new blocks in a blockchain network that relies on a staking process to secure the network. Proof-of-Stake is usually considered an alternative to proof of work (PoW) while staking acts as an alternative to mining. One of the reasons why proof of stake gained significant popularity among crypto projects is because it allows blockchain management to be more energy-efficient than the traditional proof of work mechanism. It is known as a more accessible way to contribute to blockchain since users can delegate coins to support the network without needing specialized equipment.

In proof of work, miners create new blocks by solving complex mathematical puzzles. In proof of stake, a network uses a specific algorithm to select stakers for adding the latest batch of transactions to the blockchain. The network chooses validators based on the size of their stake and the length of time they stake coins. The longer and larger the amount of coins staked, the more chances that your staking node will be selected to bring value to the network. For its work, stakers receive a staking reward paid in cryptocurrency. The exact implementation of staking varies from network to network but, in most cases, users need to lock a specific amount of coins to become a staker.

At first glance, earning crypto through staking resembles a savings account in the bank. When it comes to depositing money in a bank, the bank uses these funds to lend to other people, or for investing in financial instruments. The interest income the bank gives customers is the way to compensate for using deposited funds.

But the staking concept works in a completely different way. While staking, you earn rewards by running a staking node or by delegating your coins to the node owner. Whoever you delegate your coins to, these funds are used only for increasing the so-called staking power of the node. The higher the staking power, the greater the node’s weight in the blockchain decision-making process. It affects the chances of receiving staking rewards.

The staking reward percentage is determined in the coins you stake, not in the fiat value of these coins. Since crypto prices may fluctuate, you may benefit from both staking rewards and cryptocurrency appreciation. In another case, the staking rewards may dampen the impact of downward movements.

The CEX.IO Staking service can benefit users who are cryptocurrency staking regardless of their technical knowledge and crypto experience. You don’t need to know the answer to the question “what does staking mean in cryptocurrency?” to start earning on it.

To start participating in staking with CEX.IO, just hold coins that are available for staking on your CEX.IO balance. We will do the rest! No additional actions are required to earn staking rewards.

You will earn staking rewards as long as “stake-able” coins are stored on your CEX.IO account. Staking rewards are distributed automatically to your CEX.IO balance. With such automated balance replenishment, your balance gets bigger with each distributed staking reward, empowering you to earn more coins in the next staking period.

Follow a few simple steps if you don’t have stake-able coins on your CEX.IO balance and want to start staking:

• Sign in to your CEX.IO account.
• Deposit or buy tokens you would like to stake.
• When funds appear on your CEX.IO balance, you will automatically start participating in staking.

The CEX.IO Staking service allows you to trade and withdraw your stake-able crypto whenever you want. While staking on the website and in the app, you can also add funds to your CEX.IO balance anytime to increase potential staking rewards.

Cold staking is the process by which you stake crypto on a wallet that is not connected to the Internet. When stakeholders move their coins out of cold storage, they stop receiving staking rewards. Cold staking allows users to ensure high security and protection of funds while supporting the functionality of blockchain networks.

To ensure the safety of users’ funds, CEX.IO uses a hybrid system of cold and hot wallets. Most deposited coins are stored at the exchange’s cold wallets, while a hot wallet supports day-to-day activity on the exchange. As a result, locking coins in cold wallets for staking purposes doesn’t interrupt common interaction with cryptocurrency. It means that on CEX.IO coins accumulate rewards for users, remaining in secure cold wallets.

On CEX.IO, you just need to store cryptocurrency that is available for staking on your CEX.IO balance to participate in staking. No additional actions are required.

If you want to send crypto to your CEX.IO wallet to start staking, go to the Finance page on the CEX.IO website and click “Deposit” next to the token you want to stake. There is a wallet address on CEX.IO where you can deposit funds. Alternatively, you can replenish your balance using the staking dashboard on the CEX.IO website, clicking “Add funds” next to the token you would like to stake. If you use the CEX.IO mobile app, then follow this guide about crypto deposits.

The list of cryptocurrencies supported by CEX.IO for staking is available on the Staking page if you are not logged in, or on the staking dashboard. If you don’t see a preferable asset among supported ones, then stay tuned since we are continuously working to expand the list of cryptocurrencies available for staking..

It’s important to understand not all cryptocurrencies support staking. Staking is an integral part of the proof of stake consensus mechanism. So a staking coin is the one in which blockchain relies on proof of stake or a similar consensus algorithm.

For example, the Bitcoin (BTC) blockchain uses proof of work. Hence, it can’t be used for staking but Cardano (ADA) network uses the proof of stake principle, meaning staking participation.

The criterion of whether or not a coin is suitable for staking doesn’t depend on the platform. It depends on the blockchain network.

If your CEX.IO balance is full of assets that don't support staking, then you can exchange crypto for stake-able coins, or buy for fiat money. For that, you can use three different services:

• Instant Buy — buy crypto instantly using your payment card or CEX.IO
• Trade — exchange crypto using numerous crypto-to-crypto and crypto-to-fiat currency pairs
• Exchange option in the CEX.IO mobile app — switch between cryptocurrencies and fiat currencies even when there is no direct market available for trading.

Yes. If you buy or deposit cryptocurrency using the CEX.IO mobile app, your funds will be sent to the CEX.IO balance. Holding cryptocurrency in CEX.IO balance is the only thing needed to participate in staking.

If you stake coins for more than one staking period, you can find information about distributed staking rewards, taping “Wallet” and then selecting cryptocurrency that you stake. More information about staked coins can be found on the staking dashboard on the CEX.IO website.

CEX.IO distributes staking rewards to users once a month at the end of the staking period. You can find the date of the next reward settlement on the Staking page or the staking dashboard.

Potential staking rewards are re-calculated every hour. It allows us to determine the exact time period users own a cryptocurrency and offers users flexible interaction with cryptocurrency while staking. If staking cryptocurrency for only a portion of the staking period, you still earn proportional staking rewards.

The staking rewards are calculated based on the amount of the coins you stored and the estimated annual yield. If you have stake-able coins on open limit orders, then these funds will be included for calculating staking rewards until the orders execute. After orders’ execution, the potential staking reward will be adjusted accordingly.

No. On CEX.IO, you can stake cryptocurrency without a lock period.

Many of the best cryptocurrency staking sites and providers predominantly lock coins to allow users to participate in staking. When there is a lock period, users usually need to wait a certain period of time before their funds return from the staking wallet. Until then, users can’t transfer their staked coins elsewhere.

But since there is no lock period on CEX.IO, you can withdraw your staked coins anytime. Additionally, this feature allows CEX.IO users to trade and stake cryptocurrency simultaneously. Find a detailed explanation of our staking approach in this blog post.

Estimated annual yield (EAY) reflects potential staking rewards. Each cryptocurrency available for staking has its own estimated annual yield that is set by the network protocol. The yield is called estimated because there are a number of factors that affect reward percentage. One includes blockchain network performance and the staking weight of the node. This is also the reason why the estimated annual yield may differ from month to month. You can find more information about what that may affect the estimated annual yield in this blog post.

CEX.IO offers a convenient and easy way to benefit from automated staking. We assume the burden of finding the right node for staking or setting and maintaining it. Though you pay nothing upfront for staking, maintaining staking operations can be costly and laborious for the platform. To make the staking process smooth and efficient, we set holding requirements for staking. These requirements are not high as we endeavor to make staking affordable for every user.

Every cryptocurrency available for staking on CEX.IO has its own minimum holding requirements. If the number of coins on your CEX.IO balance is less than the minimum requirements for staking, then you cannot receive staking rewards at the end of the staking period. Once the amount of coins has become above the limit, you will automatically start participating in staking.

The earning calculator is a tool created to simplify calculations of potential staking rewards you can earn for holding stake-able cryptocurrencies on your CEX.IO balance. To see potential staking rewards, you first need to select a coin you are staking, or going to stake. Enter the number of coins you have on your CEX.IO balance, or plan to have. The staking calculator will automatically calculate the estimated earnings you can receive during different periods of time.

Keep in mind that the estimated annual yield may change with time, so the calculations made by the earnings calculator reflect “the most probable percentage of reward.” The “daily earnings” field shows the estimated reward for the day of staking the specific amount of coins. It makes it easier to calculate potential rewards for staking crypto within less than one staking period. One staking period on CEX.IO is one month.

A staking dashboard is a useful tool for monitoring your staking rewards. The staking dashboard is found on the Staking page when you log into your account. On the staking dashboard, you can see:

• the list of cryptocurrencies available for staking;
• the current market price of stake-able cryptocurrencies;
• the current estimated annual yield;
• your balance in stake-able cryptocurrencies;
• your shares (represent your current staking power);
• the amount of earned coins during the current staking period;
• your staking portfolio structure;
• history of staking rewards’ settlement.

On the staking dashboard, you can also add funds or buy more crypto to increase your potential staking rewards.