CoinDCX Pro is a leading crypto exchange known for providing deep liquidity and exciting trading products to the crypto traders. Extending their offering for traders yet again CoinDCX Pro is adding liquid staking which will enable a passive income on specific tokens for all traders with no technical knowledge. The product will be available to all the registered users of CoinDCX Pro Holding and trading their crypto’s on the exchange platform.
CoinDCX Pro has launched Stake on August 7, 2020, to help our users earn passive income by holding assets on CoinDCX Pro along with the activities they currently do on the exchange.
How many of you HODL cryptocurrencies on crypto wallets and do not have time to trade them? Have money to buy cryptos but don’t know how to earn more from them? No worries! Keeping these problems in mind, CoinDCX Pro has developed one simple product – Stake. We will be following a liquid staking mechanism where users do not have to lock their funds to earn staking rewards on CoinDCX Pro and funds remain free to trade. This is the easiest way to stake and earn competitive/best yields globally. Since funds are not locked, users on our platform can Stake as they trade.
With more cryptocurrencies to be added soon, Stake is available in 3 altcoins which are ONE, QTUM, and TRX. Before we explain the benefits of Stake to you, it is essential you understand what staking is.
What is Staking?
On a Proof of Stake blockchain, staking is the process the wallet uses to validate transactions and award the node that adds a new block of transactions to the blockchain. In Proof of Stake protocol, the distribution of chances of validating and adding the block is directly proportional to the funds a node hold in their wallets. The more the funds in the node’s wallet, the more the chance they will get to add the block, the more they will receive the rewards. For example, if A has 20% of the stake, B has 31%, C has 18%, D has 9%, and E has 22%, and there are 100 blocks to create, A will be contributing 20% in the consensus in creating each block., B – 31%, C – 18%, D – 9%, and E –22%. Same as mining pools, nodes form staking pools to increase their chances of earning the rewards and distribute on a pro-rata basis among the pooled network based on the contribution a user has made in the pool.
From a user’s perspective who is just participating in a staking pool, staking is the process of holding cryptocurrencies in a wallet for a fixed period of time and earning rewards on them. Users increase their holdings by staking coins and earn passive income through staking rewards from Proof of Stake tokens. The above-mentioned 3 cryptos are the Proof of Stake tokens that can provide passive income to users of the Stake.
Stake by CoinDCX
Stake by CoinDCX Pro can be used by all the registered users who hold a minimum balance of the above-mentioned cryptos. The minimum balance varies for each crypto and these are mentioned in the Guide, FAQs and the Stake page. For staking, all you need to do is deposit the tokens in your CoinDCX Pro wallets that you want to stake and Hodl. Simply buy those cryptocurrencies you want to stake from the CoinDCX Pro platform or transfer them from another wallet to your CoinDCX Pro wallet! These cryptos are not locked for staking and can be traded on CoinDCX Pro or sent to other wallets as and when users wish to do so. While income earned for staking is sent on a monthly basis, we calculate your funds in the staking wallet by taking snapshots of it every 24 hours. Staking with Stake is that simple and easy!
CoinDCX Pro is not hosting its own PoS blockchain nodes to offer staking services. CoinDCX Pro has always believed in collaborating with the leading organizations around the world to provide world-class services to our users. Here, CoinDCX Pro is providing Staking rewards by taking a hybrid approach of aggregating Staking rewards with partner exchanges (Binance, etc.) and natively Staking them with blockchains.
How can Stake by CoinDCX Pro be useful to you?
Have you ever thought about the hassle one would have to get into in order to set up nodes to participate in the Proof of Stake (PoS) protocol? Setting up nodes to participate in the PoS protocol involves locking of funds in a smart contract which is much higher than what we ask you to maintain in order to get a passive income. The funds locked in the smart contract cannot be withdrawn at your convenience either.
Staking with ‘Stake’ has got added benefits which most users won’t find elsewhere. You do not have to maintain a very high minimum balance in order to get an income on the tokens staked, your funds are completely liquid and can be withdrawn as and when you wish to stop staking. And guess what? We do not charge any transaction fee from any user.
CoinDCX Pro wants to build a community that welcomes people from all walks of life. Be it those who do not have time to trade but have cryptos lying in their wallets or those who want to trade but do not have the knowledge about these coins or those who just want to be a part of this amazing community! We want people to #TryCrypto and earn while learning about the Blockchain Community.
How can someone learn about Blockchain Technology while Staking?
We at CoinDCX Pro will be releasing reports and market analyses on the altcoins mentioned above and the other coins that are listed on our platform. We wish to provide you with free learning material so that you can save up on your time wasted while searching for quality content. You can also go to DCX Learn, our premium blockchain and cryptocurrency academy where you can find well-explained guides and information about the basic concepts of this industry.