What is staking, where you can increase your crypto assets just by depositing them? Check out CoinTrade's annual rate and number of stocks!

In recent years, as the variety of crypto assets (virtual currencies) has increased, the methods of managing them have also diversified. Among them, staking has attracted attention as an asset management method that allows even beginners to easily increase their crypto assets, and the number of domestic crypto asset exchanges offering staking services has been increasing year by year.

So, in this article, we will explain what staking is and how much return you can expect from it. We will also explain the features of CoinTrade, a crypto asset exchange that offers the service, and the return on its service.

Staking is a mechanism that allows users to deposit crypto assets into the blockchain network and receive rewards in return for contributing to the network.

Bitcoin (BTC) allows users to earn rewards by mining, but this is easier and more accessible to everyone.

In recent years, there has been an increase in services both in Japan and overseas where cryptocurrency exchanges collect crypto assets from users, stake on behalf of individuals as "validators," which are the equivalent of miners in mining, and distribute the rewards they earn to users.

Crypto assets that use a mechanism called "PoS" are the target

Staking is not possible with just any cryptocurrency. The crypto assets that are the target are those that are issued using a mechanism (consensus algorithm) called "PoS (Proof of Stake)," such as Ethereum (ETH).

Bitcoin is issued using a mechanism called "PoW (Proof of Work)," and the blockchain network continues to operate by having approval workers called miners confirm transactions. The disadvantage is that only miners who approve transactions can receive rewards, so only businesses with a certain amount of financial resources and equipment can make a profit.

On the other hand, in PoS, users who deposit the target cryptocurrency in the blockchain network can randomly obtain the right to approve transactions as validators. Therefore, compared to PoW, it is a relatively equal system because there is a chance to earn rewards based on the holding period and amount, without having to have a lot of capital.

In addition, PoS consumes less electricity than PoW and is attracting attention as a sustainable mechanism, and in recent years, more and more projects are adopting it as a consensus algorithm.

How are rewards generated?

Some people may wonder, "Why do we get rewards by staking?"

Both mining and staking are carried out to keep the blockchain network running smoothly.

The structure itself does not change, but in PoW, there is a concern about the risk of a "51% attack" in which malicious miners make up half of the total and commit fraud. In other words, it is theoretically possible for powerful miners to gather together and change the direction of the network.

In contrast, staking randomly selects transaction approvers and operates. No matter how many malicious people gather, they cannot commit crimes unless they are selected as approvers, so it can be said to be a more robust system than PoW.

And what supports this PoS are the individual validators who hold the target cryptocurrency, deposit it into the blockchain network, and perform the approval work. Therefore, projects that adopt PoS aim to operate a stable network by having many users hold cryptocurrency and participate in the blockchain network.

Conversely, simply holding cryptocurrency contributes to maintaining the network. Therefore, it is fair to say that you are also given the right to obtain cryptocurrency in return.

Difference from lending

As a service provided by cryptocurrency exchanges, users often confuse it with "lending".

Staking is a mechanism for depositing cryptocurrency in a blockchain network and receiving rewards in return, but lending is completely different.

Lending is a service in which you deposit your cryptocurrency with a cryptocurrency exchange or business, and have them manage it for you, increasing your assets. A major difference is that staking is limited to cryptocurrency issued by the PoS mechanism, while lending can basically handle any brand, such as Bitcoin and other PoW brands.

In addition, there are several clear differences between the two. In particular, attention should be paid to the "deposit period" and "whether or not the contract can be terminated midway, as they are very different.

Regarding the deposit period, staking is basically unlimited, but lending often has a set period for depositing and managing. As for midway termination, staking can be stopped at any time, but lending takes a very long time from stopping to withdrawing.

In addition, taking into account the risk of not getting your deposited assets back, staking may offer more benefits to those who want to increase their crypto assets in the long term.

現在、複数の国内暗号資産取引所がステーキングサービスを提供しているが、なかでもコイントレード（CoinTrade）は徹底した資産管理と高い利回りを実現していることで高い支持を得ている。

ここからは、他社と比べてコイントレードのステーキングサービスが多くのユーザーから選ばれる理由を解説していく。

A wide range of brands available

CoinTrade Stake, a staking service provided by CoinTrade, supports 10 types of crypto assets as of November 29th. This is the largest number of crypto assets handled in Japan at present (according to the website of a domestic crypto asset exchange company as of November 29th, 2023).

The following 10 types of crypto assets are handled:

• Ethereum (ETH)
• Hedera Hashgraph (HBAR)
• Near Protocol (NEAR)
• Polygon (MATIC)
• Palette Token (PLT)
• Polkadot (DOT)
• Tezos (XTZ)
• IOST (IOST)
• ADA (ADA)
• Avalanche (AVAX)

It is worth noting that, among the staking services of domestic cryptocurrency exchanges, Cointrade is the only one that currently supports the three brands, Polygon, Hedera Hashgraph, and Near Protocol (as of November 29, 2023). Since there are very few opportunities to manage these brands in Japan, users who hold Polygon, Hedera Hashgraph, and Near Protocol should definitely consider using it if they are considering managing their crypto assets over the long term.

Cointrade is also known as the cryptocurrency exchange that focuses on the best staking services in Japan, and there is a possibility that it will continue to support these brands, which are the only ones in Japan, in the future.

The annual rate is the highest in the country

Cointrade's strength is its high annual interest rate, which is the highest in Japan. It supports a wide variety of cryptocurrencies and provides stable, high yields.

*The listed annual rate is a guideline.

*The annual rate may fluctuate depending on the network conditions, and the listed annual rate is not guaranteed.

★=Staking stocks only available at Cointrade in Japan. Red=Highest interest rate among staking services offered by domestic cryptocurrency exchanges (as of November 29th).

The application process is simple and you can receive rewards three times a month.

Normally, when using a staking service, you receive rewards once a month.

However, with Cointrade, you can receive rewards up to three times a month (※). The more times you receive rewards, the more you will feel like you are actually managing your cryptocurrency.

Cointrade's staking service also allows you to apply for a minimum of one coin. Although the amount varies depending on the price of the cryptocurrency, you can apply for a minimum of about 10 yen, making it a very low hurdle even for first-time users.

If you have cryptocurrency that you traded in the hope of future price increases in the long term, it would not be a bad idea to consider staking at least a portion of it rather than just holding it.

*Reward distribution may vary depending on the stock.

So far, we have explained Cointrade’s staking service, but I’m sure many of you are wondering what kind of company Cointrade is run by.

Cointrade also offers the benefit of being able to acquire crypto assets using affiliated points, so we will explain that here.

The operating company is approved by the Financial Services Agency. The parent company is Ceres, listed on the Tokyo Stock Exchange Prime.

Cointrade is operated by Mercury Co., Ltd., which is authorized by the Financial Services Agency as a cryptocurrency exchange business (Kanto Regional Financial Bureau No. 00025). The service has been available since March 2021, and is currently expanding its range of services, with a focus on staking services.

Mercury is also a wholly owned subsidiary of Ceres Co., Ltd., which is listed on the Tokyo Stock Exchange Prime Market. The company's representative director is Satoshi Miyagi, CEO of Ceres, and as a "listed company's cryptocurrency exchange," the company provides services with a thorough security and management system.

Moppy points can be exchanged for crypto assets

Ceres operates Moppy, Japan's largest points site with 10 million members.

On Moppy, you can earn Moppy Points by registering for the app and answering surveys. These Moppy Points can be exchanged for cash, electronic money, and other points, with 1 point equaling 1 yen, but they can also be exchanged for cryptocurrencies. This means that you can use the points you have accumulated to get cryptocurrencies such as Bitcoin for free and manage them.

The cryptocurrencies that can be exchanged at present are as follows:

• Bitcoin (BTC)
• Ethereum (ETH)
• XRP (XRP)
• Hedera Hashgraph (HBAR)
• Palette Token (PLT)
• IOST (IOST)
• Polkadot (DOT)
• ADA (ADA)
• Tezos (XTZ)
• Avalanche (AVAX)
• Litecoin (LTC)
• Bitcoin Cash (BCH)

Other companies also offer services that allow you to exchange points for crypto assets, but there are very few that support such a wide range of brands. This is truly a great service made possible by partnering with Japan's largest points site.

In order to exchange Moppy points for crypto assets, you will need to open an account with Cointrade. Registration is very simple and can be completed quickly, so it is more cost-effective to open an account with Cointrade as well as Moppy.

The app is simple to use and easy for beginners to use

One factor that can be daunting when using a service for the first time is the complexity of the operation. However, the app provided by Cointrade has a very simple UI/UX, and all operations can be completed within the app.

Unlike traditional cryptocurrency apps and existing financial services, no complex or difficult words are used, and the fact that anyone can use it immediately and satisfactorily is a very welcome feature, especially for beginners.

Users can manage their cryptocurrency by simply depositing the cryptocurrency they have purchased or exchanged for points through staking. If you already own cryptocurrency, it is very convenient to be able to manage it in just a few seconds.

From here, we will introduce the specific steps for opening a Cointrade account and some very advantageous campaigns.

We are currently running multiple campaigns to celebrate having the largest number of staking options in Japan! You can receive up to 4,000 yen worth of crypto assets!

Cointrade is currently running two limited-time promotions where you can receive up to 4,000 yen worth of crypto assets.

The conditions are as follows:

1. Complete free account opening (earn 2,000 yen at this point)
2. Complete trading of 10,000 yen or more and first staking application (earn 2,000 yen upon completion)

This campaign is scheduled to run until Sunday, December 17th.

The conditions are not too strict if you are aiming for long-term management, so if you don't have a Cointrade account yet, why not take this opportunity to open one?

Account Opening Procedure

When you hear about opening an account, you may think it is complicated, but it only takes about 5 minutes, so you will not feel stressed. Below are the specific steps to open a CoinTrade account.

①. Proceed to register as a new member from the Cointrade app or browser.

②. Enter your login email address and tap "Send confirmation email."

A registration confirmation email will be sent from Cointrade to the email address you entered. Tap the URL in the body of the email to display the password setting screen.

③. Enter your password. Enter it again in the confirmation field to confirm, then tap the "Set" button.

④ Check the email titled "CoinTrade: Information on New Account Opening Application", launch the app, and press the "Login" button to proceed to the account opening procedure.

⑤ Display the "Owned Assets" screen of the CoinTrade app and tap the "Register Basic Information" button at the bottom of the screen. An external browser will launch and the "SMS Authentication" screen will be displayed.

⑥ As part of identity verification, perform SMS authentication. Enter the phone number of a mobile phone that can receive SMS and tap the "Send Authentication Code" button.

Enter the 4-digit authentication code written in the received SMS and tap the "Authentication" button.

* If the authentication code does not arrive within 1 minute, resend the authentication code by selecting "Resend SMS".

⑦ Once SMS authentication is complete, the "Acceptance of Various Documents" screen will be displayed. Read all documents to be issued, and after accepting them, proceed to the next screen. After accepting all documents to be issued, the "Agree to Confirmed Documents" button will be enabled, so tap it if you agree.

⑧ The "Enter Basic Information 1/2" and "Enter Basic Information 2/2" screens will be displayed. Enter your information in each field, check that the information you entered is correct, and then tap the "Register" button.

⑨. Perform "Online Identity Verification."

Check the details, tap the "Online Identity Verification (separate site)" button, then check the terms of use.

Select one of the following identity verification documents, then tap the "Next" button.

• Driver's license
• My Number Card (Personal Number Card)
• Residence card
• Special permanent resident certificate
• Driving history certificate
• Passport (only those issued by Japan and applied for before February 3, 2020)

*Foreign nationals must present a residence card or special permanent resident certificate.

⑩Take a photo of your ID alone, then follow the on-screen instructions to take a photo of the object.

⑪Once you've finished taking the photo, follow the on-screen instructions and tap the "Next" button. The "Online Identity Verification Complete" screen will then be displayed.

Once online identity verification is complete, an account opening review will be conducted. The review will be completed within a few hours to a few days, and the results will be notified by email.

Once you receive the email notifying you that your account has been opened, you will be able to use CoinTrade.

関連記事

Will the cryptocurrency powerhouse "Zipangu" regain its former power? Leverage reform is key

Physical crypto asset management options from a long-term perspective Has the crypto asset winter come to an end?