What Is Staking?

Staking allows you to receive passive income in the form of rewards while keeping crypto assets safe. As an owner of cryptocurrencies, you can stake coins and use the created stake to confirm transactions and create new blocks on the network. It will also be possible to delegate crypto assets to another network member and share the received reward with them. Staking crypto is also possible directly through Emirex, thus guaranteeing its security with a hardware wallet.

Staking types

The main types of staking are divided according to the algorithm of work, but in each case, the amount of income will be different. It depends on how much money the user is willing to block in their account. The higher this indicator, the greater the number of earnings. There are the following types of staking: fixed, perpetual, and DeFi staking.

1. Fixed staking. This scheme implies an indication of a specific period for placing assets on the account. The owner of the tokens must calculate the most comfortable placement period, during which the assets will be blocked and bring a fixed profit at a pre-approved rate. Usually, fairly long periods are approved — a quarter, half a year, a year — because fixed staking implies a pre-known fee, and such contracts have a higher interest rate, which allows you to make good money.
2. Perpetual staking. This type of staking is the complete opposite of the fixed option. Here, it is not necessary to block coins for a fixed period, which means that you can withdraw coins from the block at any time. Interest is lower here, but they are accrued until the participant deems it necessary to withdraw the tokens from the network or conclude sales on them. The benefit of perpetual staking is that the first income can be seen within a day after sending tokens to the block.
3. DeFi staking. DeFi projects work through smart contracts that guarantee the autonomous execution of concluded transactions, but for this, it is important to have security in the form of tokens. Therefore, both individual users and entire companies can take coins at interest, which is a kind of staking.