If we talk about earning money with cryptocurrency holdings, staking is one of the most popular options. But what exactly is staking? In simple terms, staking is when you hold onto your crypto coins to support the network and earn rewards.
What is Crypto Staking?
Crypto staking holds cryptocurrency in a wallet to support the network and earn rewards. When you stake crypto, you effectively lock up your coins to help maintain the network by validating transactions and preventing double-spending. The amount of interest earned from staking varies depending on the cryptocurrency, but it typically ranges from 1-5% per year. The level of risk also varies depending on the cryptocurrency. Crypto staking is a great way to earn passive income from your cryptocurrency holdings without trading or doing anything active. It’s also an excellent way to support the growth and development of a cryptocurrency you trust.
Crypto Staking in XANA Web
With XETA staking, users can stake their $XETA tokens to unlock benefits across the entire XANA ecosystem. XETA staking unlocks benefits in the entire XANA ecosystem: LAND, games, DeFi, NFTs, and brand apps built on XANA.
Staking your $XETA tokens is easy: Go to our website and log in. The first staking phase offers you a chance to earn rewards based on how many of your $XETA tokens you stake.
$XETA Tokens Staking Periods
The Staking will consist of a “Campaign period of 14 days,” a “JOIN Raffle period of 2 days,” and a “CoolDown period of 14 days” for a total cycle of every 30 days.
- Campaign Period: You can only stake $XETA tokens during the campaign period. After the end of the campaign period, you will not be able to enter the staking cycle. As proof of staking, tickets will be pooled in “Tickets Earned” every 24 hours.
- Join Raffle Period: After the campaign, it is essential to join the Raffle by selecting the “Join Raffle” button. Remember that you must join the Raffle within 48 hours in exchange for the tickets obtained in the staking period and get rewards.
- Cool Down Period: It is a 14-day cooldown period, during which the Raffles will be counted, and lottery results will be announced. You can claim your rewards and tax benefits after the announcement of the lottery results. In the cooldown period, a draw will be held only for those who “JOIN Raffle” in exchange for (and consume) their tickets. The drawing method is done by calculating the percentage of the total number of tickets applied to the number of tickets he/she has applied, and the winner is randomly picked.
Here is how staking in XANA works:
- Staking consists of a total of 30-day cycles: 14 days for the Campaign Period, 2 days for the Join Raffle Period, and 14 days for the Cooldown Period. Staking during the campaign period earns tickets ( Staking is not allowed during the JOIN RAFFLE and Cool Down Periods).
- Users can earn “tickets” by staking (depositing) $XETA tokens during the campaign period. They can redeem these tickets for various Treasure Boxes used throughout the XANA ecosystem, including the Metaverse App, Land, and NFTDuel built on XANA.
- The Treasure Boxes range from rare Land drops to the ability to acquire common items that can be used in XANA games and whitelisting rights.
- $XETA token can be staked from a minimum of 100 XETA and can be able to stake in multiples of “100” Also, the Ticket awarded for each 100 XETA is “1 Ticket / DAY”.
- Tickets can be earned only during the campaign period (i.e., Tickets cannot be earned during the Join Raffle and Cooldown periods).
100 XETA = 1 Ticket / DAY 500 XETA = 5 Ticket / DAY 3,300 XETA = 33 Ticket / DAY
- The “JOIN RAFFLE” button will be displayed for 48 hours (48 hours = 15 & 16 days). The campaign period is 14 days. You will need to join the raffle after 14 days of cycle within two days.
- The drawing method is done by calculating the percentage of the total number of tickets applied to the number of tickets they have applied, and it is a random process to decide the winner. (The more tickets you use, the higher the chance of being selected.)
- You are free to unstake at any time during the 30-day cycle. If you unstake within 14 days of the start of your stake, then you will be charged an 18% Tax. ( You will lose the “TICKET EARNED” you earned from staking rewards) Cool time will start after joining raffle time. If you unstake after 15 days or more from the start of the stake, the total amount of the stake can be unstaked (You will lose the “TICKET EARNED” you earned from staking rewards).
- Every 30-day cycle, the above is reset once. For example, if 40 days have passed since the start of staking, the first cycle of 30 days has ended, and you have already entered the second cycle. Please note that if you unstake at that time, it will be the 10th day (within 14 days) of the second cycle, and you will incur a Tax of 18%.
Important points regarding TAX BONUS:
- When XETA is stored in the TAX POOL ( If the staking participant unstakes within 14 days, 18% of the TAX will be pooled in the TAX POOL).
- When the draw results are announced, the TAX BONUS will be reflected in the staking site’s CLAIMABLE FROM TAX POOL section on a proportional basis for the staking participants.
- Please also note that if you unstake after receiving the XETA in TAX BONUS, the XETA in CLAIMABLE FROM TAX POOL will get “disappear.” We recommend you claim first and then unstake.
- It would help if you claimed your TAX BONUS” in-between” the time it is reflected in your CLAIMABLE FROM TAX POOL BONUS and the start of the next campaign cycle, or it will be lost. We recommend you claim the TAX BONUS XETA you have received before the beginning of the next cycle.
The staking process is relatively simple: In XANA Web user should hold $XETA tokens in his wallet, and that wallet should be connected to the Staking site, and during the campaign period, the $XETA tokens can be staked that supports staking, and then wait for the rewards to be generated.
For XANA, users can start the XETA staking here (https://staking.xana.net/).
Currently, staking cycle 5 is live, which includes many rewards via Treasure boxes. Treasure Box contains rewards like “XANA Genesis NFTs, XANA Genesis Plugins, and many more.”
What are the Benefits of Staking?
Regarding earning a return on investment, staking has clear advantages over other methods, such as mining or holding cryptocurrency.
- First, with staking, you can earn a return even if the underlying asset’s price is falling. This is because you are paid to keep the network running smoothly, regardless of the market conditions.
- Second, staking often requires less upfront investment than mining, as you don’t need expensive hardware or electricity costs.
- Finally, staking can be a more passive income stream than other methods, as once you have set up your wallet and stake your coins, there is usually little else to do apart from waiting for the rewards to come in.
How do you Start Staking?
If you’re new to crypto, you may wonder how staking works. To start staking, you will first need to acquire some cryptocurrency. You can buy crypto on an exchange or receive it as payment for goods or services. Once you have some cryptocurrency, you will need a network that supports staking. Then, wait and watch as your rewards start rolling in. Some wallets may require you to set up a staking pool or configure other settings before beginning, so be sure to follow any instructions provided by your wallet.
Is Staking Profitable?
If you’re considering getting into crypto staking, you’re probably wondering if it’s profitable. The short answer is: yes, staking can be beneficial. But like any investment, there are risks involved.
Before we get into the nitty-gritty of whether or not staking is profitable, understanding the process is essential. Staking is holding onto your cryptocurrency to support the network and earn rewards. In return for your contribution, you receive rewards in the form of new coins or tokens. By doing this, you help to keep the network secure and running smoothly.
The number of rewards you earn will depend on a few factors, such as the coin or token you’re staking, the amount of currency you have deposited, and the length of time you stake for. Generally speaking, the more currency you stake and the longer you do it for, the more rewards you’ll earn.
Risks Associated with Staking
Of course, as with any investment, some risk is involved. The value of your coins could go up or down, and if the network fails, you could lose everything you’ve put in. However, if everything goes according to plan, staking is a great way to earn passive income.
Before starting, you should know a few risks associated with staking your cryptocurrency.
- The first is the risk of losing your stake if the cryptocurrency price falls. If the price stays high, you may not be able to cover the cost of your stake and could lose everything you put in.
- Another risk is that of double-spending. This can happen if someone controls over half of the network’s total hashing power. This can prevent new transactions from being confirmed and reverse any transactions. This could lead to you losing your stake.
- Finally, there’s always the risk that the project you’re staking fails or doesn’t live up to expectations. If this happens, you could lose everything you put into it.
So, those are a few of the risks associated with staking your cryptocurrency. Be sure to research and understand them before you start staking anything.