KuCoin has a separate staking platform called KuCoin Earn. There are 3 different ways of staking on Kucoin: staking pools, soft staking, and cold staking.
What are Staking Pools?
A staking pool allows multiple stakeholders to combine their crypto assets as a way to increase their chances of being rewarded. There is a very low minimum amount of investment required to be a part of the staking pool.
The maintenance of a staking pool is managed by a pool operator. It requires significant skills and experience. Prominent pools charge their users commission. This results in smaller rewards for participants.
What is KuCoin’s Cold staking Program?
Cold staking uses pretty much the same method as normal staking. The only difference is that the process of staking is carried out offline. That means you will be staking your coins in an offline wallet. It works similarly to a hardware wallet.
It is especially useful because of its higher level of security. It basically cannot be hacked because it has no connection to the internet.
However, Cold staking might be less convenient to use as some cryptocurrencies require a high minimum staking funds. With Cold staking, you will not have the option of joining a staking pool. This might be a disadvantage for crypto newbies because they would have to invest much more (min. for ETH2 is 32 ETH).
Cold staking also requires you to lock your assets for the displayed period of time. Your rewards can only be earned after that lockup period.
What is KuCoin’s Soft-Staking Program
There are many advantages to the Soft Staking program that Kucoin offers. You
keep control over your crypto assets, don't need to work for it, there is no need for a wallet and there is also no lockup period. Crypto rewards are paid out on a daily basis and it has a very low minimum amount of investment. while keeping control over them. Investors can also withdraw their assets whenever they want.
Kucoin keeps your crypto safe, which means you don't risk your wallet being hacked. Since Soft Staking uses a pool, you get to earn rewards all the time, instead of waiting for a certain period of time to earn your reward. Furthermore, it is really unbelievably easy. However, let's look at it from another point of view, look at it from the company side?
Kucoin basically has full control of your crypto assets. This means that Kucoin has all the power over the projects. This sounds kind of scary to me. Moreover, you don't possess control over your coins, you just control the digital number Kucoin elects to show you. When talking about safety, there is a very plausible chance that hackers attempt to hack Kucoin, because of all the funds they have. To sum up, it is advantageous to the individual, but in a broader scope of the crypto world, it has some issues.
Overall, Kucoin staking undoubtedly brings many advantages. As it has been advertised, this is passive income at its best and deserves its spot at the top of the crypto staking world. On the other hand, there are quite a few risks involved like giving up control of your funds to Kucoin.
When taking into consideration that it is Kucoin that we are dealing with, this is less worrying as they are a well renowned company, but still, if a hacker manages to breach the Kucoins security, they could ruin your projects in a matter of seconds. But in conclusion, if you are looking for a Soft Staking system such as Kucoins look no further, it offers one of the best staking services.