Cryptocurrency staking has become an increasingly popular way for investors to earn passive income while supporting the blockchain networks they believe in. Among the many platforms that offer staking services, Kraken stands out with its unique options and user-friendly interface. In this article, we will explore what Kraken crypto staking is, the staking options available on Kraken, and how you can integrate these with automated trading on Cryptohopper.

Crypto staking is a process where cryptocurrency holders participate in the blockchain network by locking up their coins in a wallet to support the network's operations. In return, they earn rewards in the form of additional coins. This is often compared to earning interest on a savings account.

Staking helps secure the network and validate transactions, making it an essential part of many Proof-of-Stake (PoS) blockchain systems. Unlike mining, which requires significant computational power, staking is energy-efficient and accessible to more users. Popular cryptocurrencies that support staking include Ethereum 2.0, Cardano (ADA), and Polkadot (DOT).

Kraken also offers staking services, simplifying the process further. Staking not only supports the network but also provides a passive income opportunity for crypto enthusiasts.

Kraken offers two distinct staking options: bonded staking and flexible staking.

Bonded staking requires users to lock their assets for a specific period, which typically results in higher rewards but less liquidity. This option is usually ideal for long-term investors who are confident in their chosen cryptocurrency and don't automate their crypto trading.

On the other hand, flexible staking allows users to stake and unstake their assets at any time, providing greater flexibility and liquidity. While the rewards may be slightly lower compared to bonded staking, flexible staking is perfect for those who prefer quick access to their funds or those who want to automate their crypto trading.

Are you wondering why you don't see your cryptocurrency position on your Cryptohopper Dashboard? As mentioned, Kraken offers two ways of staking, and we only recommend the flexible staking option because these positions are recognized by the crypto trading bots you use on Cryptohopper.

If you see cryptocurrencies under "Current assets" with the extension .F, such as Ethereum (ETH.F) or Cosmos (ATOM.F), it means you are using bonded staking on Kraken. These positions are not recognized by our crypto trading bots.

Ensure you always use the flexible staking options on Kraken. These have no lock-up periods and still provide rewards. Which cryptocurrencies are supported? Check this link for more information about the rewards (APRs), supported cryptocurrencies, and more.

By following these steps, you can easily start staking on Kraken and enjoy the benefits of both staking rewards and automated trading with Cryptohopper.

Crypto staking on Kraken offers a valuable opportunity for both securing the network and earning passive income. Whether you choose bonded or flexible staking, you can tailor your approach to fit your investment strategy. For Cryptohopper users, we don't recommend staking as these currencies can't be traded on Cryptohopper.