The Bitpanda investment platform now offers staking, a process through which its users can receive rewards in cryptocurrency. Explanations.
This was the most requested feature by 3million users from Bitpanda. Since this morning, the fintech allows them to pocket a return up to 27% APR (Annual Effective Annual Rate) thanks to the stakinga mechanism well known to crypto-enthusiasts.
The principle is as follows: you immobilize part of your cryptocurrencies for a given period of time, in order to participate in the security of transactions on a blockchain which uses a type validation mode. Proof of Stake (PoS). Then, at regular intervals, the protocol selects a user at random, and assigns him the right to validate the next block. The latter receives a reward in exchange.
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11 cryptocurrencies available
On Bitpanda, these rewards are paid at a rate weekly, regardless of how the blockchain distributes the rewards. Users can choose one of 11 cryptocurrencies available for staking on the platform: ADA, TRX, XTZ, SOL, DOT, MATIC, ATOM, GRT, KSM, NEAR and LUNA. More assets will be added over the course of the year, Bitpanda promises in a press release.
Several platforms already offer staking, like the Chinese giant Binance, which has just obtained its registration as a digital asset service provider with the Autorité des marchés financiers (AMF).
However, Bitpanda stands out on one point: the assets placed on the platform are not locked and remain accessible at all times. Bitpanda users can access the cryptocurrencies they have placed whenever they want (…) investors start earning from the moment they choose to stake their cryptocurrencies, until the moment they decide to to engage, explains the Austrian fintech.
For its CEO, Eric Demuth: Bitpanda Staking is the easiest way to put crypto to work and offers our community the opportunity to earn extra income on select crypto-assets, with a one-click feature that doesn’t require no technical knowledge prior.
Be careful, however, because staking is not without risk. In addition to the possibility that the platform on which you store your cryptocurrency is pirated, the currency you are staking may see its price suddenly collapse.
Bitpanda: the platform to buy, sell and stake your cryptocurrencies