Table of contents
- What is CEX.IO staking?
- The vision of staking with CEX.IO
- Coins support staking at CEX.IO
- Start with staking at CEX.IO
- Staking rewards at CEX.IO
- CEX.IO Staking: Earning Calculator
- CEX.IO Staking risk
- CEX.IO Staking: Conclusion
- Frequently Asked Questions
- Staking is considered a way to get a passive income by holding the crypto assets in your account for a particular period.
- The platform allows you to take up to 50% returns through staking.
- CEX.IO allows staking for — Free TON, Zilliqa (ZIL), Ontology (ONT), Tezos (XTZ), Polkadot (DOT), NEO, Matic, Cosmos (ATOM), Cardano (ADA), MetaHash (MHC), and Tron (TRX).
- Rewards will be calculated every hour and will be sent to your account once a month.
- Rewards calculation depends on many factors like validator node’s performance, staked amount, crypto asset, CEX.IO’s commission, network governance decisions, etc.
- While investing for staking, one needs to be aware of the risks involved in staking due to its high volatility. CEX.IO is not responsible for any loss incurred.
What is CEX.IO staking?
Cryptocurrency staking involves holding the coins to support the functionality of a blockchain network. For staking your coins, you will receive rewards in the form of coins. Hence, it is also considered a way to get a passive income by holding the specific crypto assets in your account for a specific period.
Staking is related to the Proof of Stake (PoS) consensus protocol, which produces and validates new blocks through staking rather than mining. PoS consensus requires less computing power than Proof of Work.
To stake at CEX.IO — all you need to do is to buy or deposit supported crypto assets in your account. Your staking reward will be automatically added to your CEX.IO account at the end of every month.
The vision of staking with CEX.IO
Their goal is to allow all users to get the benefits of staking, regardless of their involvement in the technical side of blockchain technology. Some basics principles of CEX.IO staking are:
- First, They’re doing everything possible to free you from any technical hassles. As long as you own the “stake-able” coins in your CEX.IO wallet, you will receive rewards directly to your CEX.IO account. No extra steps or configurations to do from your side.
- Second, Users will receive staking rewards while still having access to coins for trading. Some staking service providers usually lock staked coins for a specific period. It means you do not have immediate access to the staked coins. With CEX.IO, you do not need to wait to unlock your coins, as you can trade or withdraw them anytime.
- Third, to calculate staking rewards, their system will consider the exact time a user owns a crypto asset. So, for example, if you have placed an advanced order, staking rewards will be continued until your order gets executed.
Coins support staking at CEX.IO
Not each cryptocurrency supports staking. Instead, it must be built on the top of a blockchain that follows a specific working principle — Proof-of-Stake (PoS) consensus.
For example, Litecoin (LTC) is built on the top of a blockchain that follows a Proof-of-Work protocol. Hence, it can’t be used for staking. On the other hand, while Cosmos (ATOM) is a Proof-of-Stake coin, i.e., it allows staking.
Therefore, it is important to note that whether or not a coin is suitable for staking does not depend on the platform or staking service. In simple terms, if a cryptocurrency does not support Proof-of-Stake, it is not possible to stake it.
CEX.IO allows staking for — Free TON (TON), Zilliqa (ZIL), Ontology (ONT), Tezos (XTZ), Polkadot (DOT), Neo (NEO), Matic (MATIC), Cosmos (ATOM), Cardano (ADA), MetaHash (MHC) and Tron (TRX).
Start with staking at CEX.IO
To start with staking at CEX.IO, you just need to follow two steps —
- Create an account at CEX.IO.
- Buy supported staking cryptocurrencies on CEX.IO or deposit it to your CEX.IO account.
Staking rewards at CEX.IO
|Coin||Estimated Annual Yield||Minimum Holdings||Reward Coin|
|Free TON||12.5%||1 TON||TON|
The platform is planning to send your reward frequently to your wallet; however, as of now, they send it once a month.
The rewards are calculated based on the amount of the coins you stored in your CEX.IO account. They also consider the coins in open trade orders, which are not yet executed.
CEX.IO Staking: Reward Calculation Factors
- The network emission, i.e., how many coins are emitted to compensate stakers, can be fixed or variable according to the network’s protocol.
- The total number of stakers. i.e., Rewards received by the validator node distributed among all the stakers based on their staked amount.
- The staking power of node. The more coins the validator node will stake, the more rewards it will receive and distribute among all stakers.
- Period of time validator node is active. i.e., The more transactions verified by the validator, the more rewards it will receive and distribute among all the stakers.
- The network governance decisions may change the staking rewards rules.
- A validator node’s commission. i.e., CEX.IO’s commission.
All of these factors affect the amount of the staking rewards.
The staking rewards differ from coin to coin. For example, MHC has a 20% estimated annual yield, and Polkadot has around 10%. Always remember, a coin having a more significant percentage reward does not always mean a better coin. Because each coin’s price changes while you stake.
CEX.IO Staking: Earning Calculator
CEX.IO earning calculator is created to calculate the estimated earnings you can get by holding your coins on your CEX.IO account.
How to use the CEX.IO staking earning calculator?
To calculate staking reward:
- Choose a coin that you are going to stake.
- Select the number of coins you have.
CEX.IO will calculate the estimated earnings you can get by staking selected coins. The calculated earning is an estimated amount, and it does not mean you will get the exact rewards.
The “Daily-earnings” shows the estimated gain you can get daily by staking the specific coin. But keep in mind, you will get rewards once a month, not daily.
The “Monthly earnings” shows the estimated gain you can get monthly by staking the specific coin.
The “Yearly earnings” shows the estimated gain you can get yearly by staking the specific coin.
CEX.IO Staking risk
While staking your assets, you need to be aware of the risks involved in staking due to its high volatility. Do not trade or stake money that you can’t afford to lose.
CEX.IO is not responsible for any loss incurred. CEX.IO distributes the staking reward to all the stakers only after receiving the funds from the dedicated PoS blockchain providers.
Risk factors of staking at CEX.IO
- The volatility of the crypto market. We can’t control the behavior of the market. The price can go up and down in a second. For example, you have staked 1000 ATOM and will be rewarded 14%. But what if the price of ATOM drops by 50%? You will be at a loss. Hence, staking doesn’t guarantee profits.
- No rewards from validators. You enter into the staking process at your own risk. It doesn’t guarantee payments from the respective blockchains.
- 51% attack. A 51% attack refers to an attack where a group of miners owns more than 50% of the network to carry out fraud events. CEX.IO monitors such events in real-time and immediately informs clients about such events. But you must be aware of such risks.
Risks involved with CEX.IO’s Platform
CEX.IO is trying its best to follow the highest security standards and practices and takes maximum precaution measures to ensure your funds and data security. However, it is your responsibility to keep your account details safe and not share them with anyone to avoid unauthorized access and possible funds. However, here are some possibilities that you must be aware of:
- CEX.IO will not be able to pay staking rewards in time.
- You will not be able to add more assets for the staking process.
- You will not be able to log into your account.
CEX.IO Staking: Conclusion
Staking is considered a way to get a passive income by simply holding the specific coins in your account for a particular period and increasing your earnings.
CEX.IO staking allows users to get rewards for holding eligible cryptocurrencies (like Tezos (XTZ), Polkadot (DOT), Matic (MATIC), Cosmos (ATOM), Cardano (ADA), Tron (TRX), etc.) into the CEX.IO account.
Rewards calculation depends on many factors like the amount of cryptocurrency held by you in the CEX.IO, the cryptocurrency you staked, network governance decisions, etc.
Frequently Asked Questions
No, the reward rate is based on multiple factors like validator node’s performance, staked amount, cryptocurrency, CEX.IO’s commission, network governance decisions, etc. Therefore, it changes over time.
CEX.IO doesn’t guarantee that you will receive any specific rewards over time.
Annual Percentage Yield (APY) is a rate of return earned on the staked amount in one year as compounded interest.
Yes, CEX.IO allows you to trade cryptocurrency while earning rewards for staking. It also includes the count of coins that are in open orders for staking rewards.
Any change in the validator node’s performance or any change in rewards factors can impact the actual payout.