Staking is a mechanism in the cryptocurrency space where users lock their cryptocurrencies into a blockchain network or smart contract protocol; this serves as proof of their support and participation in the network, and in return they receive some form of reward. Many blockchain networks based on the Proof-of-Stake (PoS) model or its derivatives have adopted the staking mechanism. Through staking, cryptocurrency investors can participate in the network verification process, help maintain the security and operation of the network, and earn rewards as a return on their “equity” investment, often distributed in the form of the cryptocurrency itself.
In simpler terms, staking is when users support the operation of a network by placing their cryptocurrencies as collateral and receiving additional tokens as rewards, similar to the interest earned on deposits in traditional industries. Unlike mining, which requires significant hardware and energy consumption, staking has a relatively low entry limit and is more environmentally friendly and economical.
As the crypto market develops and matures, staking not only offers individual users the opportunity to earn a stable income, but also attracts institutional participants, including exchanges. Driven by market trends, capital has repeatedly entered the PoS path, and the advantages of exchanges as traffic gateways are becoming increasingly prominent. In general, the main advantages of exchanges entering the staking space include the following:
- Diversified revenue sources: By offering staking services, exchanges can earn transaction fees or revenue shares and contribute to profit channels.
- Improved user engagement: Users can manage their assets in one place through exchanges and increase their asset income through staking. Providing such services can also increase user satisfaction and loyalty.
- Promoting ecosystem building: Some exchanges have issued their own platform tokens, and offering staking services can also encourage users to hold these tokens long-term, increasing liquidity and stability in the ecosystem.
- Competitive advantage: As competition in the market becomes increasingly fierce, staking has become an important product for exchanges to attract new users and retain existing users.
Recently, global cryptocurrency trading platform CoinEx announced that it has launched staking services that support users with one-click deposit of ETH as collateral. For CoinEx, which has been in the industry for over six years, the launch of staking services not only increases product and brand recognition and loyalty among global users, but is also a manifestation of CoinEx’s efforts to develop its product ecosystem. The layout of staking services shows that CoinEx is not just a pure cryptoasset trading platform, but has also become a more comprehensive one-stop cryptoasset management platform.
At the same time, as the crypto market continues to evolve, CoinEx’s launch of staking services could provide users with a new path to increase value. When platform users lock their assets into the CoinEx Staking service, they can profit not only from the increase in the original asset price, but also from regular income similar to dividends. This means users can have a stable source of profits even during market fluctuations, making their asset allocation more diversified and robust.
CoinEx also stated that it will offer more diverse staking options to platform users in the future and support a wider variety of cryptocurrencies to meet the needs of different users. By introducing the staking feature, CoinEx not only opens a new channel for investment, but also increases its brand impact. It is believed that in the future, CoinEx will continue to lead the cryptocurrency transactions and investment service industry with its constantly innovative products and services.