Investing in cryptocurrency already has a lot of Australians enthralled, but what if there was more to offer than just investing?
Staking is a way to be rewarded with more cryptocurrency on top of your current investments. Much like the icing on the cake, staking gives you rewards as you hold cryptocurrencies.
It does this by putting your cryptocurrency to work on the blockchain, by bolstering the security of cryptocurrency transactions. This is called Proof of Stake and it’s a method of verifying transactions without involving a bank or payment processor.
People can choose how much of their cryptocurrency holdings they wish to stake and they can easily unstake it at any time.
In return they receive rewards and these are commonly a percentage of the amount of cryptocurrency they are staking.
Swyftx is an Australian owned and operated crypto exchange offering staking on cryptocurrencies. With Swyftx, investors can currently stake 14 different types of cryptocurrencies: ADA, SOL, ATOM, DOT, MATIC, KAVA, KSM, ALGO, XTZ, FLOW, TRX, ONE, EGLD, LUNA.
When your cryptocurrency is staked, the Rewards Per Year (RPY) is constantly calculated and updated. These rewards are funnelled into your blockchain wallet each day shortly after 11am AEST.
Staked cryptocurrency is held in a staked wallet, as opposed to a trading wallet. A trading wallet contains unstaked cryptocurrencies and this is where your funds are returned if you choose to unstake them.
One of the biggest attractions of staking is the compounding effect on rewards. For example, if your staking wallet balance is 365.25 DOT and the RPY is 10 per cent and you choose to keep staking your cryptocurrency, the next day’s staking reward will be calculated on a staked balance of 365.35 DOT (365.25 DOT + 0.1 DOT).
Another appeal of staking on Swyftx is there are no fees involved. So you can stake and unstake cryptocurrency as much as you like.
There is also no minimum holding period to stake a cryptocurrency, meaning you can buy new crypto and stake it on the same day.
Get started today and sign up to Australian cryptocurrency exchange Swyftx.