If you have coins on KuCoin, then there’s a good chance that you’ve heard about staking and KuCoin’s own plans to launch a staking program within the next few months. These two terms are often used interchangeably, but they’re not quite the same thing. While KuCoin Staking and Savings will work differently than Proof-of-Stake (PoS) cryptocurrencies that rely on staking rewards to maintain the network, it will still offer an enticing option for people looking to grow their portfolio while they sleep.
What is staking
Staking means that cryptocurrency is stored in a wallet for a duration of time in order to provide support for a network that is experiencing a deficit. By doing so, you can earn rewards in the form of new coins. This is different from mining, which requires expensive hardware and consumes large amounts of energy. Staking is a more environmentally-friendly way to earn rewards, and it doesn’t require any special equipment. All you need is a digital wallet that supports staking.
If you’re not familiar with how staking works, it’s basically similar to savings. Think of it as being able to earn interest by holding money in your bank account. The more money you have in your account, then more interest you earn—in digital form. It also involves locking up a certain amount of coins within a network for an allotted period of time, which requires a bit of security on your part. If someone manages to hack into your wallet or steals it while unlocked, they’ll have access to any funds stored there while they’re vulnerable. Because rewards depend on length of time locked up and amount held, if that balance gets hacked or stolen then so do your rewards. This is why safety is paramount when taking part in staking processes.
The Advantages of Staking
Staking your KuCoin tokens comes with a range of advantages that can help you boost your earnings. For one, staking helps to secure the network by validating transactions and blocks. In return, you earn rewards for helping to keep the network running smoothly. Additionally, staking your tokens can help you earn interest on your holdings, providing a passive income stream. And finally, staking can help increase the value of your tokens over time as more people stake their tokens and demand for the currency increases.
As such, it’s no surprise that an increasing number of users are moving their coins onto KuCoin in order to take advantage of these benefits. However, if you’re not familiar with staking yourself, it can be difficult to figure out exactly how staking works on KuCoin. Luckily, with our quick guide below, you can learn everything you need to know about how staking works on KuCoin. It’s important that your posts are easy to read and free from typos or spelling mistakes as well as format errors. If your content is hard for people to understand then it may lead them away from your brand if they don’t feel like taking the time figuring out what you’re trying to say.
What are KuCoin Shares (KCS)
KuCoin Shares are the native tokens of the KuCoin cryptocurrency exchange. KCS are used to power the KuCoin ecosystem and are used to pay for fees on the KuCoin exchange. Holders of KCS can receive rewards for participating in the KuCoin exchange, including trading fees, withdrawal fees, and referral bonuses. KCS can also be used to vote on platform decisions, such as which new assets to list on the KuCoin exchange.
While KCS are listed on exchanges for trade like any other cryptocurrency, holding KCS does not entitle holders to any rights related to profit sharing. Instead, KuCoin shares revenue with token holders in exchange for their investment. 80% of fees generated by KuCoin will be sent back to users holding KCS on a daily basis. For example, if you hold 1000 KCS, you will receive 0.8% of all trading fees from that day in proportionate amounts of Ethereum (ETH). The remaining 20% of revenue is burned – that is converted into an unusable state forever. This burning process will reduce total supply of KCS tokens over time as well as continuously increase demand for those tokens still in circulation.
How to purchase KCS
If you want to purchase KCS, you have a few options. The first option is to buy it directly with fiat currency on KuCoin. To do this, you’ll need to create an account on KuCoin and deposit your fiat currency into your account. Once your funds are deposited, you can click on the Buy/Sell tab and select KCS from the list of currencies. From there, you can enter the amount of KCS you want to purchase and submit your order. The second option is to buy KCS with cryptocurrency. To do this, you’ll need to create an account on KuCoin and deposit cryptocurrency into your account.
Once your funds are in your KuCoin account, you can use it to purchase KCS. As mentioned above, if you want to buy KCS with fiat currency, then you need to head over to KuCoin’s Buy/Sell page and select KCS from a list of currencies. Once there, enter how much KCS you want to purchase, then click on Buy. You’ll be taken through a simple confirmation process where you confirm your order is correct, then pay for it by submitting your digital wallet address where KuCoin can send your purchased KCS.
How does staking work?
When you stake your coins on KuCoin, you’re essentially locking them up for a set period of time in order to earn rewards. The longer you stake your coins, the higher the rewards will be. In addition to staking, you can also earn interest on your savings by depositing them into a savings account on KuCoin. The interest rates are currently very attractive, and you can withdraw your funds at any time without penalty.
Whether you’re staking your coins or depositing them into a savings account, staking is a great way to generate passive income. It’s simple enough for anyone to do it, but you’ll need some KuCoin Shares first. If you don’t already have some, you can get them on Binance by trading cryptocurrencies like Bitcoin and Ethereum. The more KCS coins you own, the more rewards you’ll earn when they stake. However, if there aren’t enough KCS coins in circulation at any given time, your earnings will go down as well.