What is Cronos (CRO) and how can you stake it? We'll delve deeper into these questions along with the benefits and risks associated with stacking a CRO in this guide.
With the growing adoption of Proof-of-Stake (PoS) blockchains, staking has become a popular way to grow portfolios without actively trading cryptocurrencies.
Unlike proof-of-work (PoW) consensus mechanisms, which use a significant amount of energy to mine cryptocurrency and validate transactions on the blockchain, proof-of-stake works by selecting validators. Based on the number of local crypto tokens. include
Similar to earning interest on a savings account, staking is an arrangement where users — or stakers — entrust a certifier to receive and hold their crypto in exchange for proportional rewards paid in the same cryptocurrency. are Apart from earning such rewards, the stacker also helps keep the network secure and decentralized.
If you’re holding some CRO in your wallet, you might want to check out the staking opportunities available for the token. Don’t know how to stake your tokens? Let us help you!
But first, let’s discuss what Cronos (CRO) is and how it is used.
What is Cronos (CRO)?
Formerly called Crypto.com Coin, Cronos is the native cryptocurrency token of Cronos Chain — an Ethereum-compatible, decentralized, open-source blockchain developed by Crypto.com, a cryptocurrency exchange.
Crypto.com is an exchange that offers various cryptocurrency products, such as a wallet, a brokerage account, debit card, payments and a DeFi wallet. It was founded in Hong Kong in 2016 by Chris Marzalek, Rafael Melo, Gary Orr and Bobby Bao.
How does CRO Staking work?
CRO uses a Delegate Proof of Stake (DPoS) consensus mechanism. Investors earn rewards by giving their tokens to validators who run nodes to validate transactions on the Crypto.org chain. Block rewards are received in CRO, which are distributed to delegates after deduction of commission.
Rewards depending on platform and method chosen for staking. There is no minimum stake required for the CRO token, and delegates can stake at any time.
However, when opening their CRO, users will be bound by the 28-day unbonding period required by the Crypto.org chain. During this period, the unbonded balance will not earn any reward.
Users should be careful in choosing validators as their bad behavior may result in loss of CRO tokens.
How to stake a CRO.
There are several options available to users for staking CRO. However, some of the most common are as follows:
Crypto.org DeFi Wallet
Crypto.com DeFi Wallet
There are two types of CRO tokens: Crypto.org native CRO (address starts with “Cro”) and ERC20 CRO (address starts with “0x”). To stake on Crypto.org, the CRO native token is required and should not be confused with the ERC-20 CRO token.
To get native CRO tokens, you can use Crypto.com DeFi wallet. Being non-custodial, the wallet requires that you store the seed phrase. You need to make sure you are using CRO (local).
To stake your tokens, open the DeFi Wallet app and tap “Start Earning”. Select CRO and add the token amount you want to stake.
Then, tap on “To Validators” to select a validator.
Review all the details and confirm it by tapping on “Verify Stack”. Once staked, the CRO stack will appear on the DeFi Earn screen.
CRO can be claimed at any time by tapping “Earn” on the navigation bar at the bottom of the DeFi Wallet app. Tap on the CRO asset to view the staking details, and then go to “Claim Rewards” under the relevant authenticator. It is recommended to authenticate and authorize the transaction with a passcode or 2FA, if enabled. Earned assets will be reflected on the available balance of the CRO wallet.
Stacking CRO on an app comes with the following benefits:
- Reserve one of the premium metal Crypto.com Visa cards;
- Get crypto wallet benefits, like shopping discounts and extra card cashback;
- Enjoy better APR on Crypto Credit and Crypto Earn programs.
Rewards are between 10% and 12%, paid weekly depending on grades.
Installing CRO in an app is quite easy. All you need to do is go to the card option at the bottom right corner of the app, select your preferred Visa card, click on “Stake CRO” and follow the instructions.
To participate in the Crypto.com exchange, you must either purchase CRO from the exchange or transfer it from another wallet. Go to “Stake and Earn” section and select “Stake CRO”. Enter the number of tokens you wish to stake, select “Review Staking” and confirm.
On the next page, you will see the amount of CRO staked and the remaining days until it can be withdrawn.
Is it safe to stake CRO?
There are some risks associated with CRO stacking. Validators should be carefully selected, and ideally, they should have 99% uptime and more than 8% voting power. If validators have too much downtime, they may be penalized, resulting in a loss of 5% of your stacked cryptocurrency.
By removing a CRO, users go through a 28-day process during which they cannot withdraw their CRO. Additionally, those using a DeFi wallet are solely responsible for remembering their seed phrase — if they lose it, they also lose access to the funds stored in the wallet.
Unlike DeFi wallets, a centralized service like the Crypto.com exchange holds private keys, not the user. This means there is a risk of losing assets if the exchange is hacked.
Software wallets on mobile phones are relatively secure, but many believe the best option is to use a hardware wallet that can stake CRO.
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