You can earn rewards when you stake cryptocurrencies and fiat for a period of time as an incentive to acquire and hold onto staking assets. Some staking coins may require a bonding period. To earn staking rewards, simply select the asset you wish to stake and once it has finished bonding, it will be ready to start staking and earning rewards twice a week from the Proof of Stake process.

Popular coins like Bitcoin are proof of work, meaning they’re generated by using machines competing to solve complex equations to “mine” coins and digital assets. Proof of Stake works differently by choosing from a pool of people holding the Proof of Stake coin. A Proof of Stake “validator node” can be added to the pool by staking coins for a certain period of time, giving Proof of Stake validators a source of income without needing powerful mining hardware.

These are the types of coins and fiat currencies that you can earn rewards on through Kraken’s staking service. For example, staking coins such as Tezos (XTZ) and Cosmos (ATOM) can be purchased on Kraken and staked to earn rewards.

On-Chain staking allows you to stake your assets with blockchain Proof of Stake protocols such as Tezos, while Off-Chain staking allows you to stake your assets with Kraken internal programs. Off-chain staking is available for eligible countries only.

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