Staking on Bitpanda: put your crypto to work

Whether you’re a crypto newbie or a seasoned investor, you’ve probably heard the term ‘staking’ being thrown around and described as a fundamental feature in the future of cryptocurrency - so what’s staking all about?

What is staking?

In order to confirm that a Proof of Stake (PoS) blockchain is secure and decentralised, certain participants on that network commit or “stake” their crypto-assets to validate or to support the validation of transactions and ensure the system is working optimally. 

Staking provides an opportunity for these participants or “validators and delegators” to earn rewards by locking their coins into cryptocurrency wallets to verify network transactions on a PoS blockchain. This means holders of a select range of coins will be able to stake them directly on Bitpanda and potentially earn extra income. 

What are the main benefits of staking? 

You can earn more crypto

Staking can be a highly-profitable* way to earn interest on your crypto portfolio and provide a high yield extra income source. With Bitpanda, the process is simple, giving you the opportunity to let your portfolio work for you. 

It bolsters network security

Although the security of the PoS blockchain might not be at the top of your list, it’s vital for preserving a network’s effectiveness and the protection of its users, which also includes you. 

It’s greener than Proof of Work (PoW) crypto mining

Proof of Stake (PoS) blockchains are considered to be a better option for the environment, as staking rewards participants for verifying transactions based on their stake in the network - as opposed to PoW networks that reward the fastest miners who solve computationally-complex calculations, which ultimately use more energy.

When will staking be available on Bitpanda? 

We know that staking is important to you as an active member of our community, so we’re launching it in a couple of weeks. Keep an eye out for the staking announcement and the latest Bitpanda news via our social media channels and the Bitpanda Blog. Also, don’t forget to subscribe to the official Bitpanda YouTube channel for our weekly recaps and even more video content. 

Want to learn more about staking? 

Visit the Bitpanda Academy to find out more about staking soon as well as other crypto topics. 

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Disclaimer - The information shared in this article does not constitute investment advice. Investing carries risks. Make sure to conduct your own research before concluding a transaction.

*Staking allows you to participate in transaction validation on Proof-of-Stake blockchains for which you will be rewarded. Make sure you understand the risks involved before staking any coins. Bitpanda does not guarantee any reward. The 27% maximum reward limit is only possible during the Early Bird 2x Rewards, more info in the T&Cs. 

**Stocks and ETFs are underlying assets of the contracts offered as Bitpanda Stocks, brought to you by Bitpanda Financial Services. More information at bitpanda.com.