The Indian exchange has announced the introduction of a Crypto Staking feature that offers users the opportunity to make passive income
CoinDCX announced the launch of its new staking feature in an official post as it aims to help users earn passive income by holding assets on the exchange. The feature will open new doors for investors as liquid staking doesn’t require technical knowledge nor active interaction to generate earnings for users.
Staking looks like the new holding
Most users keep cryptocurrencies in their wallets when they are not actively trading with them, just holding onto them waiting for the moment to create an order or use them in a trade.
Staking creates new opportunities for such users to benefit from the coins they are holding without losing any of the benefits of holding them as the funds won’t be locked and are still available to the user.
Proof-of-stake blockchains work in such a way that users with more funds in their wallets get a better chance at gaining higher rewards, as they are distributed between the node’s participants on a pro-rata basis.
The process is simple and does not require users to understand the underlying mechanisms to take advantage of their benefits. The simpler a system, the more likely it is to attract new users, which bodes well for the new staking system.
Coindcx aims to offer a fresh staking experience
The exchange will follow a liquid stacking mechanism to achieve the goal of allowing the staking without locking, enabling users to stack as they trade. The staking feature will be available to use with ONE, QTUM and TRX at this time, with the addition of more cryptocurrencies being part of the exchange’s plans.
Staking with CoinDCX will be available to all users who hold a minimum balance of eligible cryptocurrencies; the amounts vary depending on the coin they are holding.
By depositing the tokens in their CoinDCX wallets, users will be participating and earning rewards from staking without the need to take further action, or to activate the feature as no drawbacks are resulting from the process
Earnings will be paid to users every month, based on calculations made from snapshots taken by the platform every 24 hours.
As CoinDCX does not host its own PoS blockchain nodes to offer these services, the exchange is collaborating with other organisations to provide a hybrid approach of aggregating staking rewards with partner exchanges such as Binance, while natively staking them with blockchain.