Bitvavo expands its staking service, now you can share this cryptocurrency

Bitvavo expands its staking service, now you can share this cryptocurrency

The largest crypto exchange in the Netherlands, Bitvavo, has it new blog Let it be known that he will be making some changes to the strike service from April 18th. Terra (LUNA), NEAR Protocol (NEAR), Komodo (KMD), LTO Network (LTO), The Graph (GRT), and Kusama (KSM) will become part of the staking service starting next Tuesday. The interest rates on these newly added cryptocurrencies range from a whopping 2% to a whopping 7%

Strike pitfavo

In addition to adding all of these cryptocurrencies to the staking offering, Bitvavo has also chosen not to offer staking for the following cryptocurrencies: Dai (DAI), Chainlink (LINK), Litecoin (LTC), and Tether (USDT). In addition to the strike rewards Updated to align with current protocol and market rewards.

The hit on the chain vs the hit off the chain

It is important to be able to distinguish between the two types of strike on the chain strike f out of chain He hits. Cross-chain staking is exclusively with the cryptocurrencies used by the network Proof of stake As a consensus mechanism, like Ethereum (ETH) or Cardano (ADA), for example. By putting your crypto on-chain, you contribute to the security and operation of the relevant blockchain.

Staking on-chain can be done in several ways, one of which is using a centralized crypto exchange, such as Bitvavo. In addition, you can also create one yourself checker You become inside the network or join the so-called Pole strike Addition, but the first option is often the most user-friendly option for beginners.

On the other hand, off-chain staking works much differently in theory than its counterpart. However, the outcome is the same: you receive a reward for holding cryptocurrencies. Off-chain storage can be done using Proof-of-Stake and Proof-of-Work cryptocurrencies and has nothing to do with that sense. With this type of staking, the user agrees to lend supported cryptocurrencies to other third parties with the aim of earning money from them.

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In the case of Bitvavo, Bitvavo Custody BV lends assets to third parties lending partners.

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