Staking crypto accounts and savings accounts
Locked staking a cryptocurrency
Staking is a way of earning rewards for holding certain cryptocurrencies for a predetermined period. But even if you’re just looking to earn some staking rewards, it’s useful to understand at least a little bit about how and why it works the way it does.
How does staking work?
The reason your crypto earns rewards while staked is that the blockchain puts it to work. Cryptocurrencies that allow staking use a “consensus mechanism” called Proof of Stake, which is the way they ensure that all transactions are verified and secured without a bank or payment processor in the middle. Your crypto, if you choose to stake it, becomes part of that process. it works just as your funds work in a bank savings account. You are paid interest for the bank’s being able to use your funds to give out as loans, mortgages or just invest.
What is the advantage of staking?
Many long-term crypto holders look at staking as a way of making their assets work for them by generating rewards, rather than collecting dust in their crypto wallets. Not only does my token collect interest, but it also compounded interest throughout the locked period.
How do I start staking?
It’s simple; deposit into your staking account with Bitcoin (staking accounts can only be deposited with Bitcoin). Choose a cryptocurrency you want to stake. Choose the period(for how long it will be locked) you want to lock your stake. Choose the amount you want to stake and you are done. Now just sit back, relax and watch your tokens work for you, earning rewards.
Savings Account
As in a bank, you can open a savings account with us which will earn you compounded interest regularly.
The term and the size of the deposit to your savings account will determine the interest-bearing Account you will be allocated.
Reinvest your savings. Before the end of the term, we’ll write to you to ask you if you want to withdraw your money, start a new Fixed Rate Saver, or discuss your options.
Interest is paid directly into your account. We’ll pay your interest into the savings account you used for your initial deposit.
You’ll get exactly what you know. Your interest rate remains fixed throughout the term, so you’ll know in advance exactly how much interest you’ll earn.
Unlike your bank, we let you share in the profits we can make from the use of your funds in investments we make. Hence, the possibility to give much larger interest rates than your bank savings account generates for you.
Check with your account manager about the advantages of having a savings account with us!!
Can I split my deposit for staking between a few crypto-currencies?
Yes, you can split your deposit between as many tokens as you would like.
Can I split my Bitcoin deposit between my trading account, my savings and my staking account?
Yes, you can split your deposit between your trading, savings and staking accounts.
Is there an advantage to locking my stake for a longer period?
Of course, the longer the tokens are locked, the higher the rewards they receive.
Does the amount I deposit affect the reward received?
Yes, it does. The larger the deposit the higher the interest rate.
Can I redeem my staked tokens earlier than the locked period?
Yes, you can, but it will cause a loss of interest received. The amount of loss depends on the period of early withdrawal.
What happens with my tokens when the market drops?
Your locked tokens continue to earn interest even though the market is dropping.