Crypto staking allows holders of specific cryptocurrencies to earn rewards in return for validating transactions on a blockchain network. Staking allows token holders to earn more coins without ever having to sell their tokens. The staking process uses incentives and penalties governed by computer-based rules to encourage honest participation in the network.
Stakers who act within the rules of the protocol receive rewards for their contributions, while those who act dishonestly can face penalties, such as losing their staked cryptocurrency through a process called slashing.
Learn more about staking in our article What is crypto staking?
Crypto staking is important because it rewards crypto token holders for their help in keeping the blockchain network secure and decentralized.
Only cryptocurrencies that use proof-of-stake (PoS) based consensus mechanisms can be staked. Bitcoin and other proof-of-work (PoW) coins cannot be staked. However, with Kraken opt-in rewards you are able to earn on a range of crypto assets, including some that cannot be directly staked.
Yes, staking carries risks, including market volatility, lock-up periods, potential slashing penalties and platform security issues. While staking on Kraken can help to lessen or even eliminate some of these risks, it’s always worth coding your own research before participating in crypto staking.
Kraken offers flexible staking across a wide range of cryptocurrencies, meaning you can unstake your assets at any time. Bonded staking, however, does involve a lock-in period. Check out our staking guide to see what options are available for Bittensor.
Kraken is renowned for being one of the industry’s most trusted and secure crypto exchanges. With that said, we strongly advise our clients to follow best security practices and ensure they perform their own rigorous due diligence before staking Bittensor with any platform.
We regularly make new staking cryptocurrencies available on Kraken. To view the latest list, please check out our staking assets page here.
Yes, we strive to add new staking cryptocurrencies as often as we can. Register with us to receive email notifications, or follow us on social media to keep up-to-date on all our latest updates.
