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When you stake crypto, you support the blockchain of the cryptocurrency you hold. Not only will you be part of writing a new block and sustaining the viability of the blockchain, but you will also get rewarded for it. Here's how the process works:
We provide Canadians with convenient, dependable, and secure access to staking and buying and selling cryptocurrencies. Established in 2016, we've gained a reputation as Canada’s most trusted and secure cryptocurrency exchange platform.
Bitbuy is the first TSX-listed company and one of the only OSC registered crypto trading platforms in Canada to be given regulatory approval to offer staking.
When you stake with Bitbuy, your assets are not loaned out to earn rewards. Your assets are always held at a 1:1 ratio, you can see our latest Proof-of-Reserves audit here.
With Bitbuy staking, you don’t have to worry about extended lockup. We make it easy for you to unstake and withdraw anytime subject to each network’s unbonding period.
Buying cryptocurrency directly from individuals is slow and risky. We make the process faster and far more efficient.
You can use your bank account directly to fund your Bitbuy account, which you then use to buy and sell cryptocurrencies in Canada.
Participate in creating new blocks in the blockchain while you earn rewards. Unlike mining, crypto staking does not require expensive equipment or loads of resources. All it takes is holding the crypto you already invest in.
Staking is a way to earn rewards on your crypto by participating in the block creation and validation process for a Proof-of-Stake network.
Simply put, you are locking up the crypto you already hold, putting it into a staking pool, and the pool will use those coins to help validate transactions. Staking helps crypto networks confirm all of the transaction data in a blockchain.
By holding your crypto assets, you are participating in a network's consensus-taking process. Like a miner in a proof-of-work network, stakers are helping to approve and verify transactions on the blockchain. For doing that work, you get rewarded. A helpful analogy is to think of the rewards as you think of interest in your bank account or dividends on your investments.
Staking is another way to invest in crypto. It's an alternative to mining or purchasing crypto.
You earn rewards from staking crypto for validating transactions and producing blocks on the blockchain. Earned rewards generally come from a combination of transaction fees and new token emissions.
For putting your holdings into a pool, you get paid rewards. The rewards are paid out frequently, and you will clearly see your staked assets in your account and the rewards you earn at all times—just like all of your holdings with Bitbuy.
A key to staking crypto is understanding the differences between proof-of-work and proof-of-stake. Their goal is the same: to protect the network's decentralization, but they get to that goal differently.
If you have heard of mining crypto, you are familiar with proof-of-work validation.Validating transactions occurs as people compete to solve a highly complex equation. The process takes a lot of computing power. The person that produces the solution gets to write the new block of transactions in the blockchain and is rewarded with coins. The more computer power a miner has, the greater the odds of winning. It is a resource-intensive process that is expensive, slow, and uses massive amounts of energy. Despite these limitations, it has functioned asa trusted consensus mechanism that is reliable and secure.
An alternative to proof-of-work is proof-of-stake. People stake their crypto coins in a proof-of-stake validation network instead of using computing power. You provide your coins to a network computer (or a node), and they participate in a contest to forge the next block. Through a variety of factors, the network selects a winner. Whoever wins gets to forge the next block into the ledger and is rewarded with coins.
Proof-of-stake is not a competition between supercomputers. Staking creates a contest between ordinary stakeholders. If you win, you can forge the blockchain's next block and are rewarded with coins. Additionally, you get the satisfaction of participating in your coin's blockchain and helping combat its volatility.Proof-of-stake is a more cost-effective and balanced way to validate transactions, and it creates an incentive to keep coins, making them less volatile.
This depends on the coin that you are staking. Currently, Solana, Polygon, and Polkadot rewards are automatically compounded as your rewards are restaked. Ethereum rewards are not auto-compounded since your rewards are added back to your wallet. See more information here.
Simply put -a HODLER of crypto is typically the best candidate to stake crypto. If you are already planning on holding a crypto coin for a long time, why not earn some rewards for putting your crypto to work? HODLERS love staking because it tends to be significantly less risky than other ways people make rewards in crypto, such as higher-risk borrowing and lending. Some consider staking to be on the lower end of the risk curve for earning rewards for HODLERS. If you are holding already, why not make some rewards while you wait?
Staking involves validators who lock up their coins, so they can be randomly selected by the protocol at specific intervals to create a block. The process can be boiled down to these three steps:
Solana (SOL) and Ethereum (ETH) are currently available to stake on Bitbuy. This will be followed by Polkadot (DOT), Cardano (ADA), Polygon (MATIC), and Cosmos (ATOM) in the coming months.
There are 100+ staking products available, but we are selective about what we make available to our users, given our regulatory status. We will announce full details of new coins to stake in the future.
Your staking rewards are automatically added to your Bitbuy account. The payout time will vary depending on the coin.
For example, if you are staking 100 SOL, and the estimated annual reward yield is 5%, over the course of a year, you would expect to have 105 SOL (the 100 you initially staked, and the 5 you earned in staking rewards).
Your crypto rewards are generated by your participation in a staking node. Your rewards will NOT be generated from lending out your crypto assets.
Your staking rewards are automatically accrued and paid out as long as your crypto remains staked, based on the blockchain network's variable staking rewards rate.
The staking rewards rate changes depending on many factors related to the coin, but generally so as long as the administrator of the node (our Institutional partners) do a great job, the crypto rewards from staking will be paid to you.
Your staked crypto assets will be stored in institutional-grade cold storage provided by BitGo, a market leader in compliant digital asset custody solutions.
For Ethereum staking, it will be locked in a deposit smart contract which remains in the control of BitGo on behalf of Bitbuy.
It is as easy as using the rest of the Bitbuy platform. If you hold a coin, with just a few clicks your coins will be staked. It will be just as easy to stop staking when you want your funds unlocked and made available for trading in your account again.
You can start adding funds to your Bitbuy account today. After you have created an account, you will then need to take a couple of more steps:
1. Deposit funds with the fiat currency of your choosing and deposit cash to invest, even as little as $50.
2. Choose your cryptocurrency order (market or limit order).
There are three main advantages of staking crypto. First, it is a less energy-intensive process. Because staking does not require proof-of-work, there is no need for supercomputers and the energy consumption they require.
Secondly, it is easier to earn rewards from crypto staking. You are not competing against supercomputers to solve complex problems. Instead, you can leverage your crypto in exchange for earning rewards. Simple.
Finally, there is no special equipment required. All you need is some crypto and a Bitbuy account. Getting started is as easy as 1,2,3.
To learn more about joining Bitbuy Private Wealth or connect with our OTC crypto desk, contact us below or call us at 1-888-770-COIN.