Staking is an excellent way to make some extra coins on top of the cryptocurrencies you hold. You can even make some serious money with this feature if you have a large quantity of a particular cryptocurrency. To know what staking is and whether Swyftx offers staking, read this guide till the end.
What is Staking in Crypto?
Staking or Proof of Stake has a similar concept as Proof of Work; it maintains consensus and keeps the ledger secure. However, the major difference between both is PoS requires way less work than PoW, which is computational power-hungry.
With PoS, you don’t need a specialized mining rig to calculate hash values and create new blocks to earn rewards. The miner can just stake (lock) the currency they want to mine and once the mining process is complete, they will get their locked currency back with some reward in the form of the same currency.
The caveat with staking is that you cannot use the amount of cryptocurrency you are staking because it gets locked and will not be released until each block transaction problem is decrypted. Furthermore, miners get rewards in proportion to the amount of currency they put at stake.
Does Swyftx Offer Staking?
No. Swyftx doesn’t offer staking as of now, but their team members have stated several times on Reddit that the staking feature is underway.
They are actively working on adding Staking to their platform but still need some time to get through the challenges involved in completing this complex process.
Only time will tell how good their staking function is going to be and how many cryptocurrencies will their users be able to mine via PoS.
If you can’t wait for Swyftx to roll out the staking feature and want to try it out now, then several Swyftx alternatives like Coinbase and Binance offer staking.
Keep in mind, for some cryptocurrencies; you will have to hold a minimum amount of that currency before you can start staking.