Staking is a great way to earn passive income from cryptocurrency without having to do any work. However, most stakers lose money because they don’t understand how to properly set up their wallet and stake correctly. Or they choose a wrong platform to stake their coins on.
There are many different exchanges available for staking cryptocurrencies, but not all of them are created equal. FTX exchange is one of the newer exchanges on the scene, but it has already made a name for itself as a top-tier exchange. In this blog, we’ll explore some of the reasons why you should consider using FTX exchange to stake your coins.
WHAT CAN YOU STAKE ON FTX?
FTT is an ERC-20 token that acts as the native currency of the FTX exchange. It was launched on May 8, 2019, and is currently ranked 32nd according to the latest Coinmarketcap rankings. Staking FTT on FTX opens a user up to many benefits like:
- A higher percentage of referral rewards,
- Discounts and rebates on maker fees,
- IEO tickets that increase as the number of staked FTT increase,
- Relative increases in SRM and other airdrops,
- Free ERC-20 withdrawals daily, etc.
If you want to unstake staked FTT, you have to wait for 14 days; if it’s urgent, you can pay a fee to unstake immediately.
SRM is the native token of the Serum exchange, a decentralized exchange that works around a high-performance on-chain CLOB(central limit order book.) It is ranked 109th by market cap with a market cap value of about $1B
The Solana coin hardly needs any introduction. It made the headlines in the crypto world after seeing significant gains that come on the backs of its superfast transaction speeds and very cheap fees. It is currently the fourth crypto by market cap with an impressive market cap of $75M+
RAY is the utility token of Raydium exchange, a decentralized automated market maker which utilizes access to Serum’s order book as well as its own liquidity. It is ranked 116th with a current market cap of about $934M.
WHAT ARE THE APYs AND STAKING RATES ON FTX?
Staking FTT on FTX doesn’t come with direct benefits but comes with many perks, as mentioned earlier. In addition, the amount of FTT held determines the percentage increase in the SRM airdrops allocated(from a 2% increase for staking 25 FTT to a 14% increase for staking 1,000,000 FTT).
The APY (Annual percentage yield) for staking SRM on FTX is 4% and is paid out hourly. The rewards are doled out in equal proportions as locked and unlocked SRM. Thus, you can gain double benefits on FTX by staking FTT to earn SRM and then staking the SRM rewards to earn even more SRM. To unstake SRM, you would have to wait for seven days unless you are willing to pay an unstaking fee.
If you stake SOL on FTT, you get 6% APY rewards. As with SRM, unstaking takes seven days, but you can pay an unstaking fee if you want it right away.
This is the most profitable staking venture in FTT at the moment. The APY is a juicy 20%. You can pay a fee to unstake immediately, or you would have to wait for seven days for free unstakings.
IS IT SAFE?
Staking on FTX, like any other activity on the exchange, is as safe as can be. Consider why:
- The FTX exchange has not reported any major hack since it went into existence in 2019. True, that is not enough time to judge, but it still gives a vote of confidence in their security protocols.
- There is an insurance fund in place to protect users in the event of extreme market reactions.
- Apart from the insurance fund, FTX has also dedicated 5% of all non-FTX owned FTT tokens to hedge against customers’ unfair losses.
- They have partnerships with some big names like Binance, Circle, Paxos, etc
- Their website is fully SSL-encrypted with regular improvements to prevent hackers from penetrating
- They also take users’ accountability seriously by enforcing two-factor authentication to secure their accounts against unwanted use.
- FTX is currently valued at $18B after closing a $900M funding round on July 20, 2021, one of the biggest of any crypto company. With that amount of backing, you know that they know what they are doing.
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