Staking FAQ

Frequently Asked Staking Questions

• What is Staking?
• How are my rewards calculated?
  
• Can I automatically re-stake my rewards? 
• What is the fee for staking on CoinSpot?
• Is there a lock up period for coins that I stake on CoinSpot?
• How long does it take to unstake my staked holdings?
• Is there a minimum/maximum I can stake?
• What does it mean if a coin has hit its Staking Cap?
• What is APY?
• Why does the APY of a cryptocurrency fluctuate?
• What are the risks involved?
• Will I be taxed on my staking rewards?
• How are staking rewards credited to my account?
• What are the Staking Terms of Use?
• Will there be other coins added to stake?

 

What is Staking?

Staking is the process where users are given the ability to earn a percentage reward on their cryptocurrency by locking it over a period of time. This is typically done via a Staking Pool where coins are then rewarded to users in proportion to their staked holdings.

Important Update!

Please note that Staking will be transitioned to Earn in the near future. You will not be able to create any new Staking positions.

For more information surrounding the Earn Program, please refer to the following article - https://coinspot.zendesk.com/hc/en-us/articles/4723564393359-CoinSpot-Earn-FAQ

How are my rewards calculated?

Rewards are based on the competitive staking rate CoinSpot offers for each coin. To view the current staking rewards rates of a specific coin, please visit the Staking section of the coins that are available for staking:

• (ADA) Cardano
• (ALGO) Algorand
• (ATOM) Cosmos
• (AVAX) Avalanche
• (AXS) Axie Infinity
• (BNB) BNB
• (CRO) Cronos
• (DOT) Polkadot
• (EGLD) Elrond Gold
• (FLOW) Flow
• (FTM) Fantom
• (KAVA) Kava
• (KSM) Kusama
• (LUNC) Terra Luna Classic
• (MATIC) Polygon
• (ONE) Harmony
• (SOL) Solana
• (TRX) TRON
• (VRA) Verasity
• (WAN) Wanchain
• (XTZ) Tezos
• (ZIL) Zilliqa

Can I automatically re-stake my rewards? 

Yes you can! Once in the staking page of the coin you are wanting to stake, tick the box underneath your amount entered to stake. Simply un-tick this box if you wish to stop automatically recirculating your staking rewards.

 

What is the fee for staking on CoinSpot?

There are no fees associated with staking on CoinSpot.

Is there a lock up period for coins that I stake on CoinSpot?

There is no lock up period for staking your holdings on CoinSpot. You are rewarded based on how long coins are staked for and coins can be unstaked at any time.

How long does it take to unstake my staked holdings?

CoinSpot members have the flexibility to unstake their holdings at any time. However, you will receive staking rewards based on the period of time you have staked your coins. The longer you stake your coins, the more rewards you will receive.

Is there a minimum or maximum I can stake?

There is no minimum amount required to stake.

Regarding a maximum limit to stake, there is no individual limit on the quantity of a cryptocurrency you can stake. You are able to stake up to 100% of your cryptocurrency balance unless the Staking Cap for that specific coin has been reached.

What does it mean if a coin has hit its Staking Cap?

If a specific coin’s staking status shows that the staking pool is capped, this means that our staking pool is currently at maximum capacity. Until the cap is increased, or other users unstake their cryptocurrency, you will be unable to stake that specific coin.

In the case of a capped staking pool, we will be actively implementing additional infrastructure to open up additional pools.

What is APY?

Annual percentage yield (APY) represents the percentage of growth expected over a 12 month period. 

Why does the APY fluctuate?

As staking revolves around staking pools, fluctuation of the rate may occur based on the pools state that is continually changing. You may receive more or less than the approximate APY displayed.

What are the risks involved?

As with all investments there is risk involved. Mainly, if the price of your coin drops while you have staked it, there is no guarantee the rewards from your staking period will make up for the loss of value of your staked coin.

Will I be taxed on my staking rewards?

In line with what has been advised by the ATO, under Australian Tax laws, rewards earned through CoinSpot's staking service are subject to Capital gains tax.

Your staking and rewards history can be accessed via the Order History section of your account. Just head to the My Account menu, select Order History and you will have the option to download a CSV file as well as your EOFY statement.

Please note that all commentary on tax implications by CoinSpot it is generic in nature. We strongly recommend consulting with your Accountant or Tax Specialist to ensure that you are compliant with your own personal circumstances.

For further information surrounding tax on cryptocurrency, please have a read of our Tax Overview article.

How are staking rewards credited to my account?

Staking rewards are credited at midnight and will appear in your account by 10am. You will be rewarded in proportion to the amount of coins you are staking and the amount of time you have staked them for.

What are the Staking Terms of Use?

To view the terms of use, please see here.

Will there be other coins added to stake?

CoinSpot is actively looking to add more coins to be staked. Please feel free to let us know on social media which coins you would like to see added.

Need more help? 

Please submit your request via Zendesk - https://coinspot.zendesk.com/hc/en-us/requests/new  

or start a conversation with us via Live Chat and our team will provide full instructions and advice.