How to Stake Your Cryptocurrency: A Beginner's Guide

Welcome to LBank! Are you looking for a simple way to grow your cryptocurrency holdings? Then you might be interested in staking. In this beginner-friendly guide, we'll explain what staking is and how you can get started on LBank.

What is Staking?

In the world of cryptocurrency, many networks rely on a system called Proof of Stake (PoS) to verify and secure transactions. Instead of using energy-intensive mining like Bitcoin, PoS networks choose participants to validate transactions based on the amount of cryptocurrency they "stake" or lock up.

Flowchart of how Staking Work in Crypto?

Think of it like this: by holding and staking your crypto, you're essentially supporting the network's operations. In return for this contribution, you can earn rewards, similar to earning interest on a deposit.

There are generally two key roles in the staking process:

1. Validators: These are participants who run software to verify transactions and create new blocks on the blockchain. They often require a significant amount of staked crypto.

2. Delegators: These are users who delegate their crypto to validators. By doing so, they participate in securing the network and earn a portion of the validator's rewards, without needing to run complex software themselves.

Why Stake Your Crypto?

Staking offers several potential benefits for cryptocurrency holders:

1. Earn Rewards: One of the most attractive reasons to stake is the opportunity to earn passive income on your cryptocurrency holdings. The rewards are typically distributed as more of the same cryptocurrency you are staking.

2. •Support Network Security: By staking your crypto, you contribute to the security and efficiency of the blockchain network. A larger amount of staked crypto makes the network more resilient to attacks.

3. Simple to Get Started: Compared to other methods of earning crypto, like mining, staking can be relatively straightforward, especially when using a platform like LBank.

How to Get Started with Flexible Staking on LBank

LBank offers flexible staking, which means your staked assets are not frozen and can be traded or withdrawn at any time. 

Here’s how you can participate using the LBank App:

1. Log in to your LBank App and tap on [Earn] on the homepage.

2. On the [Flexible] page, you will see a list of available assets for staking. You can view the Annual Percentage Yield (APY) and other relevant data.

3. Select the cryptocurrency you wish to stake and tap on [Join Now] on the right.

4. Carefully read the participation rules. After confirming, tick the box to agree to the Flexible Staking Service Agreement and click [Join Now].

For staking via the LBank website:

1. Log in to the LBank official website and click on [Earn] then [Flexible].

2. Find the cryptocurrency you want to stake. You can use the [All] tab to view all available assets and their APY.

3. Click on [Join Now] for your chosen cryptocurrency.

4. Read the participation rules, agree to the Flexible Staking Service Agreement by checking the box, and click [Join Now].

Please note that for LBank flexible staking, the daily income is calculated based on the amount from snapshots taken daily at random, multiplied by the (annualised yield / 365). Revenue is settled with the designated assets of the project.

Important Considerations

1. While flexible staking on LBank offers ease of access, it's important to keep a few things in mind:

2. Annualised Yield: The expected annualised revenue may be adjusted based on the actual revenue.

3. Daily Income: Daily income clearing time is between 00:00 and 00:30 (UTC), during which the position cannot be closed out.

4. Minimum Balance: If your asset balance falls below the minimum required amount, you may not receive income for that day. For LBank Earning (which includes flexible earning for USDT), the minimum participation with USDT is 200 USDT.

5. Risk: Remember that investing in digital assets carries risk, and the value of your investment can go down as well as up.

Conclusion

Staking is a great way for beginners to start earning rewards on their cryptocurrency holdings and contribute to the security of blockchain networks. With LBank's user-friendly flexible staking options, getting started is simple. Explore the available cryptocurrencies on the LBank platform and begin your staking journey today!