The FTX collapse shook up the crypto market, and billions of dollars are currently locked up in the now-defunct crypto exchange. On top of that, FTX was such a big player that the contagion spread to other crypto players, including several trading powerhouses, popular DeFi protocols, and decentralized exchanges. Trust in the crypto ecosystem is at its lowest level. Investors are withdrawing funds from major centralized exchanges while the sales of cold wallets are up.
Despite an overall gloomy mood in crypto space, one form of crypto investment remains at the height of popularity, and this is staking. Staking is similar to bank deposits. You agree to lock up your funds for a period of time and, in return, earn interest on them.
Of course, staking providers are not immune to financial troubles. Many investors are still recovering from the crash of the Terra ecosystem. In May 2022, Terra’s algorithmic stablecoin, UST, lost its peg to the US dollar, and approximately $60 billion got wiped out of the digital currency space.
Such events have made the crypto community weary of locking up their assets in staking, and the crypto market responded with new innovative approaches to it.
What is the main concern with staking crypto right now?
The requirement to lock up assets in order to earn interest is a big issue for many investors when they consider staking. While terms vary depending on the platform and the type of crypto asset, it is almost always necessary to lock up crypto funds for a certain period of time.
Unfortunately, locking up your funds means losing access to them for the staking period, and if an unpredictable event like the FTX crash affects the platform you’re using, you may not be able to withdraw your funds and lose them. What’s more, to maximize the earning potential, investors often lock up hefty amounts of capital. While a trustworthy platform with a high standard of security can be a good option for high-value lockups, the risk is ever-present.
As such, the idea of staking with no lock-up period is very appealing to investors, since it gives them flexibility to withdraw or sell their staked assets at any time. Only a handful of crypto players offer such an option and the HitBTC exchange is pioneering this approach.
Staking with no lock up is a step in the right direction
HitBTC is a leading cryptocurrency exchange, and one of the few that offer staking with no lock up period. This feature is available in the mobile wallet app and web terminal.
Staking on HitBTC is simple and easy. To enrol, users just need to click the “Enable staking” button in the staking section of the wallet app or web terminal. Once enabled, they start earning interest on crypto assets, which are part of the program. Check out the list of staked coins and tokens to see what’s available right now and follow announcements on HitBTC’s social media channelsfor the latest additions.
One of the most alluring features of HitBTC staking is that users do not even need to transfer funds to a specific sub account on the exchange! Instead, HitBTC customers earn daily interest on the total balance of their spot and wallet holdings of the staked assets. This means they can withdraw or sell them at any point in time. What’s more, as this is a service available through the HitBTC mobile wallet app, investors can perform these actions on the go.
The current roster of assets available for staking at HitBTC includes twelve coins and tokens, but the HitBTC team is constantly looking for ways to add new assets to the list.
As the demand for passive income opportunities rises across the crypto space, solutions like staking with no lock up period become the new norm. Unfortunate events like the FTX crash leave a negative mark on the market, but they also open up a window for growth and development. And while investors are still struggling to recuperate following the turbulent starting weeks of November 2022, platforms like HitBTC are introducing innovative solutions to boost security and flexibility across the space.
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