This complete guide to staking with Bitcoin Suisse gives an overview of the different opportunities and considerations for earning staking rewards as well as a step-by-step intro to using the Bitcoin Suisse staking dashboard interface in Bitcoin Suisse Online.
Intro: Varied opportunities with proof-of-stake blockchains
Proof-of-Stake (PoS) is a mechanism where blockchain validators, which confirm transactions, are chosen based on the amount of tokens they have staked or committed to the protocol. While there are various types of proof-of-stake protocols, they generally share one thing in common: they offer a reward for securing and maintaining the network to the party which dedicates his or her tokens for that purpose.
This offers an opportunity.
(For an overview of staking and what it is – read our “What is Staking” Fundamentals article.)
At the same time there are various factors to be taken into consideration when choosing to stake a token, how much to stake and for how long.
Since the rules of each blockchain may vary greatly, as do the rates and lockup “bonding” periods (currently ranging from 0 to 28 days), it is important to understand what staking each token involves.
This guide provides an overview of these different considerations for the staking tokens which Bitcoin Suisse supports. It also provides an overview for how to use the Bitcoin Suisse staking dashboard in online accounts – a key tool for clients to control their staked assets and get the most out of them.
Different tokens – different terms – different rewards
When choosing a token to stake, there are two main factors to keep in mind, besides the rate of rewards which can be earned.
The first is the lockup period for tokens. This affects the availability of these tokens for trading or transfer. The second factor is the reward schedule – in other words, when and for how long rewards are paid to staking token holders.
At Bitcoin Suisse, we help clients clearly see how each stakeable token measures against these factors. We use the terminology (outlined in detail below) entry lock period and exit lock period to refer to the time before and after staking when tokens are not available for trade or transfer.
We also reference entry rewards wait period as the wait time after committing funds until the first rewards are received. Likewise, the exit rewards period is the phase when rewards are still received after a person has chosen to stop staking (even after tokens are unlocked and tradeable/transferrable.
Check the full list of reward, exit periods etc for stakeable tokens at Bitcoin Suisse below.
Here are two scenarios to illustrate the significance of these factors.
Scenario #1 – Staking XTZ (Tezos)
Rapid access and long rewards period
When staking on Tezos there is no entry lock period, meaning that as soon as tokens are deposited to stake, they are locked in a staking contract and not available for trading.
At the same time, there is no exit lock period for XTZ tokens. As soon tokens are unstaked, they can be traded or transferred. In your Bitcoin Suisse Online this is easy to carry out with a click of button directly in your account and, in the case of Tezos, occurs right away.
XTZ tokens do not begin accumulating rewards immediately, however. From the moment tokens are staked, there is an entry rewards wait period of 7-8 cycles as defined by the Tezos blockchain (approximately 23 days). Similarly, there is an exit reward wait period of the same length.
With a short (non-existent) entry and exit lock period and a significantly longer time to payout, staking XTZ is a matter of both patience with the advantage of instant staking contract access.
Scenario #2 – Staking DOT (Polkadot)
Rapid entry, immediate payout – delayed exit
Another popular stakeable token, DOT has a slightly different structure. While it has a short entry rewards wait period (24 hours) and hence entry lock period, DOT tokens are locked for a period of 28 days after being unstaked.
This setup does not favor those whose interest is both in earning staking rewards and taking advantage of sudden market volatility.
Staking in Bitcoin Suisse Online
As outlined above, stakeable tokens carry with them a variety of considerations. At Bitcoin Suisse it is important to us that we allow our clients the maximum control over their staking tokens so that they can take advantage of the full spectrum of opportunities that are possible.
For this reason, the staking dashboard which clients use in their Bitcoin Suisse Online accounts clearly shows how tokens are being used, earning rewards and when they are locked.
Staking with Bitcoin Suisse is a simple process.
- Acquire the tokens you want to stake. All the tokens which can be staked with Bitcoin Suisse
are available via our trading service
- If you already own the tokens you wish to stake, place an automatic order to transfer tokens
from your trading account to an automatically-created staking account.
- Before finalizing your staking order, you will see a clear view of the projected annual rewards.
- Click “confirm” to place your staking order.
- Staking is set up automatically – no extra work required.
Once you have begun staking, the Bitcoin Suisse Online staking dashboard gives you a clear view of your orders.
Track your rewards as they accrue
The Online dashboard also offers you an overview of each reward payout as it comes in, 24/7. See where your funds are earning – just as you would in any digital finance application.
The top dashboard view shows when your staked currencies are earning rewards and when not (depending on protocol level delays etc).
No time limits
You can start and stop staking whenever you wish. Simply:
- Place an order to unstake
- View the order in the dashboard
No more steps are required from your side.
Reminder: as mentioned earlier, the lockup period after unstaking is set by the individual blockchain protocols. These are all stated on our website but are subject to change according to the blockchain protocol’s governance.
Why stake with Bitcoin Suisse?
There are several advantages of staking with Bitcoin Suisse:
Trusted service provider
- We are a regulated Swiss company with an audited cold storage solution and a bank guarantee
by a state-backed Swiss Cantonal Bank. This removes the risk associated with the anonymous delegation
services available elsewhere.
- Our technical setup is managed by professional staff and based on best practices in the industry.
Transparency and Simplicity
- You have full control over the staked currencies in your portfolio.
- You can stake different currencies all in one place.
- Fees for Bitcoin Suisse’s staking service are a flat 15% for all tokens and there is no
minimum amount required to stake.
Flexibility and control
- While rewards are received in the tokens of the associated blockchain, our trading platform
allows you to convert your rewards to fiat or other cryptocurrencies in the same interface.
- The crypto assets that you stake cannot be traded at the same time, but it is possible
to use some of them as collateral for our loan product.
- You may unstake your tokens at any time. Please note, some tokens have a lockup period
based on the protocol specification.
Depending on the token being staked, your funds may go through different stages from the time you initiate staking.
Entry lock period
With some staking currencies your funds are locked for a certain period of time as soon as they are added to your staking account. This is known as the entry lock period. The lockup time varies depending on the currency and funds cannot be withdrawn during this time.
Exit lock period
Some currencies have an exit lock period that begins from the moment you request the withdrawal of funds from your staking account. For staking currencies that have this in place, no withdrawal is possible until the end of the period. If present, the lockup time varies depending on the currency.
The unstakeable balance refers to funds in your staking account that are not in an entry or exit lock period and can therefore be unstaked at any given time.
Entry rewards wait period
Some staking currencies have an entry rewards wait period. This is a period of time after depositing your funds and before starting to earn staking rewards. The time varies depending on the network.
Exit rewards period
Some currencies continue to pay rewards between the time you request the withdrawal of funds from your staking account and the time they are actually withdrawn. This is the exit rewards period.
Ongoing rewards period
The ongoing rewards period refers to the time when your staking funds are not locked or in a wait period. During this time they are earning rewards.
Bitcoin Suisse provides an all-in-one staking solution. Let us do the work, while you earn the rewards.
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