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Staking crypto on KuCoin

How to Stake Your Crypto on KuCoin

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It’s no secret that staking your crypto can supercharge your crypto gains over time. If you’re planning on HODLing your coins like every decent crypto investor should, I’d recommend you put those coins to work. I’m a huge KuCoin fan because of their robust crypto offering and low fees.

$10k of ATOM with $1k/year addition exceeds $30k after 10 years of staking on KuCoin at a conservative 4.5% rate


Is KuCoin safe?


KuCoin seems be to lesser known than Coinbase or Binance, but over 1 in 4 cryptocurrency investors worldwide invest with KuCoin. KuCoin incorporated itself in Seychelles but conducts operations in Singapore. KuCoin is as safe as if not more safe than Coinbase or Binance. If you choose to use KuCoin, it’s imperative that you set up two-factor authentication (2FA) and choose a complex password.


Cryptos that can be staked on KuCoin


To stake and earn rewards on KuCoin, you’ll need to hold one of the 20 or so cryptos that KuCoin stakes. You cannot stake Bitcoin or Ethereum, because both are proof-of-work coins. The big ones are Cosmos (ATOM), Terra (LUNA), EOS (EOS), Tezos (XZT), and Kusama (KSM). Keep in mind that KuCoin is constantly expanding their coin staking offering. Check out the below list to see which coins you can stake:

A sample of the many cryptos available for staking on KuCoin


How does KuCoin flexible (soft) staking work?


For a deep-dive on what staking is, check out my article about it. Kucoin offers two types of staking: flexible (soft) staking and regular staking. Here are the differences between the two:


Flexible (Soft) Staking: If you hold any of the above cryptos on KuCoin, staking is very simple. Soft staking means that your coins will not be locked up. This is a huge advantage. If you need to cash out or trade your coins, you can do so at anytime. Annual Percentage Yields (APYs) are smaller with flexible staking than they are with regular staking. APYs with flexible staking on KuCoin are around 2% to 8% with some exceptions.


Regular Staking: Each of these coins does have a lock-up period, ranging anywhere from 1 day to 28 days. If you need to sell your coins but the lock-up period hasn’t passed, you’re out of luck. Still, these lock-up periods are short compared to other staking platforms. APYs with regular staking average around 9% to 11% with some exceptions.

Which coin you stake matters


I’m a huge fan of larger cap cryptos, after losing a ton of my small cap portfolio in the May 2021 crash. Keep in mind that just because a coin has a high staking reward percentage doesn’t mean it’s a good deal. If you’re earning 60% on a shit coin that’s going to crash then you’re still going into the red. Staking rewards are paid out in the currency staked. So if I own 100 ATOM staked at 11% APY, at year’s end I’ll have 111 ATOM. This means that if the coin loses value, you’ll still lose money.


What are the best cryptocurrencies to stake on KuCoin?


While it’s good to pay attention the the APY %, you should buy and stake the coins whose projects you believe will be the most successful. I want to back the coins that are going to gain the most adoption and appreciate in price regardless of staking rewards. Staking rewards are just icing on the cake and a reward for HODLing and being a patient investor. Out of the bunch offered by KuCoin, I like Kusama, Cardano, Terra, Polkadot, Tezos, and Cosmos.


Pool-X

Note that KuCoin uses Pool-X for its staking platform, so don’t freak out when you see that your coins will be staked on a website URL that’s not KuCoin.com. You will see on your assets homepage on KuCoin the option to transfer your funds to Pool-X. I’ll explain in the step-by-step below.


Steps for staking on KuCoin


1. Make sure you have your KuCoin account set up and funded. KuCoin is one of the few exchanges that doesn’t require Know-Your-Customer (KYC), so the setup process is fast.


2. Look at the Pool-X.io site to see which cryptos are stakeable and at what APYs. Choose which coin you’d like to stake and if you haven’t already, buy the coin on KuCoin or send it to that coin’s wallet address on your account.


3. Log in to your KuCoin account and go to your assets overview page. In the bottom middle of the page below the Trading Account box you’ll see Pool-X Account box. Click on Transfer.



4. After clicking Transfer you’ll see a pop-up asking you from where you’d like to transfer your coins, and which coins you’d like to transfer. Under Direction select the account you’d like to transfer coins from. Under Coin select the crypto you’d like to transfer. Under Amount enter the amount you’re planning to stake. Click the available amount in the top right of the box to send the max. Hit Confirm.


5. Once the transfer is complete, click the Pool-X Account box. You’ll be taken to the Pool-X Account Balance page. In the top right corner click Earn.



6. On the Earn page, you’ll need to choose between flexible staking or staking. In this tutorial I’ll be staking Polkadot for a 28-day lock-up period. To the right side of the cryptos listed under either, click the more button. On the earn crypto staking page, either scroll down to the coin you want to stake or enter the coin’s name in the top right search bar. To the right of the coin you’d like to stake, hit Subscribe.


7. The staking pop-up will appear. In blank box, enter the amount of your coin you’d like to stake. There’s also the option to hit all on the right. Check the terms and agreement box and hit subscribe. Your coins are now staked. Keep in mind you can look at the Lockup page on Pool-X anytime to check the rewards you’ve earned and how many days left you have in your lock-up period.


Crypto gains require patience
Now all you’ve got to do is try and not check crypto prices every five minutes (I’m super guilty of this). Over time, the price appreciation of the coins you hold combined with the staking rewards you’ll earn could amount to something you didn’t think was possible! Remember not to panic when things are getting bumpy. If you can stay the course when things are rough, you’ll be a true crypto veteran!

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