CEX.IO is an ecosystem of products, which help people interact with blockchain on various levels and facilitate the development of the entire crypto ecosystem.  Being a centralized exchange, we also support the values of decentralized finance and contribute to making it simpler for everyone despite their technical background.  We add cryptocurrencies of the decentralized projects to our simple and user-friendly products, thus increasing their adoption. Zilliqa is one of such projects. We integrated ZIL into the range of our services to encourage its awareness and adoption.

What is ZIL Staking and why?

ZIL Staking – is a term for delegating your own ZIL coins to the seed node on Zilliqa blockchain. In return, you regularly receive rewards in ZIL based on the percentage of the coins that you’re staking and the period of delegation. Why consider ZIL Staking? Because it brings you passive income! Okay,  but you’ll say — seed node, delegation — that sounds a bit like rocket science (admittedly, for many of us), how to start earning with it if your experience with blockchain is not enough? Read on!  We’ve integrated ZIL into CEX.IO Staking so you don’t need to have an advanced knowledge of crypto to start staking it and receiving some extra income. Furthermore, you can trade or exchange it while you’re holding ZIL on your CEX.IO account thus increasing your returns. Exactly, your funds are not locked for the staking period — trade or withdraw them as you please.  Yet, you can also stake ZIL directly on Zilliqa blockchain. CEX.IO has one of the most active seed nodes on this network, that’s why we’re offering the lowest commission fees. So, how do you choose which way of staking ZIL is better for you? In this post, we:

• analyzed both ways, reviewing them thoroughly
• went through the whole process, describing it step-by-step

Continue reading to learn all about it!

ZIL Staking on CEX.IO account

ZIL staking is among the top 3 most popular currencies for staking on CEX.IO.  You can stake ZIL by simply holding your tokens on CEX.IO (with CEX.IO Staking). This means we handle all technical aspects while you are receiving regular staking rewards. Here are some more details about this option: Pros:

• You earn MORE ZIL than you can on any other node: 16% against < 14% on others
• Your funds are not locked, you earn rewards even if your tokens are in orders on the exchange (till the moment your order is executed)
• It is enough to hold 1 ZIL for at least 1 hour to start getting rewards
• Rewards are paid automatically
• No commission from nodes or network itself
• Your funds are safeguarded by multiple levels of encryption 
• You can recover your password to your CEX.IO account if you forgot it, when if you’ve lost the private key to another crypto wallet, there is no way back
• Easy-to-use interface with a real-time reward dashboard and staking calculator
• Many ways to fund your ZIL staking – you can exchange other crypto to ZIL, or buy it with a credit card, or make a ZIL deposit

Cons:

• Rewards are calculated automatically once a month meaning that you can’t claim them sooner, like once a week or once a day
• You don’t earn gZIL (Governance ZIL)

However, CEX.IO is the only exchange where you can buy gZIL.

ZIL Staking with CEX.IO node on Zilliqa blockchain

Or you can stake directly on the CEX.IO’s node at stake.zilliqa.com and directly participate in blockchain governance. In this case, you get lower fees compared to all other wallets or providers. Some more details: Pros:

• You pay the smallest commissions on the market: only 1% (versus 5%)
• You directly support Zilliqa decentralization 
• You are allowed to vote on governance proposals of the Zilliqa ecosystem
• You earn 1 GZIL for each 1000 ZIL reward you get

Cons:

• Your funds are locked during the period you stake and even ~14 days after the moment you decided to unstake coins. And you don’t earn rewards during those 14 days. BECAUSE you stake directly with the node so the lockup rules applied to the node apply here.
• You lost your keys – you lost your money, no way to restore
• More technically advanced to do, so requires a bit more time
• You need to have a separate wallet with ZIL on it
• Zilliqa’s native staking dApp Zillion is still in the beta phase so technical issues possible and you use it at your own risk

Hence, we give users the possibility to participate in staking regardless of their experiences with the blockchain.  Most people like liquid staking, so they are able to do anything with their tokens anytime. But if you are a long-time investor or an enthusiast you can take a look at an option of direct staking on stake.zilliqa.com with the CEX.IO node When you stake your ZILs, you receive ZIL and gZIL as a reward, this means you are allowed to vote on governance proposals on the Zilliqa ecosystem. Here’s how you can start staking at CEX.IO Staking and on CEX.IO node:

CEX.IO’s role in the crypto ecosystem

The CEX.IO team came to the industry at its dawn and grew deep expertise there. Since the beginning we strived to develop effective and user-friendly crypto solutions. Since our goal was to bring the crypto markets closer to everyone and we saw them becoming mainstream, just like conventional financial systems, we’ve set the benchmark standards for verification and transactions processing (AML/KYC). By now, being among the industry leaders, we are continuing to maintain those high standards for all the market participants. But what’s most important here, being regulated, trusted, and one of the oldest world companies in the industry, we make sure that we bring to the industry a “high-quality” audience.  What does it mean? CEX.IO has a strict approach to regulation. We are reviewed and regulated by multiple authorities across the globe. Hence, we maintain a healthy environment on our platform. Our customers are verified, legitimate industry participants.  What’s more, CEX.IO services help customers grow and become advanced participants of the crypto ecosystem, which includes decentralized finance services.  Customers’ growth starts from a simple buy crypto with a card, up to trading derivatives, making blockchain governance decisions through staking, and more. We bring up an educated customer who can foster further crypto adoption and industry growth.

Conclusion

All in all, both staking ZIL on the CEX.IO node and through your regular CEX.IO account has its advantages. Choose the one that suits your goals the most. If you’d like to participate in Zilliqa’s governance decisions and you’re ok with a more advanced user interface, staking on the node is a good option. Whereas if you want to maximize your returns and reduce the commission costs, while also minimizing the effort, staking ZIL on the CEX.IO website or in a mobile app sounds like a better option. While offering favorable conditions for ZIL staking, CEX.IO also contributes to Zilliqa ecosystem growth by simplifying access to the token and attracting quality and educated users. We are keen on creating services that allow generating value in simple, hassle-free, and in some ways a cost-efficient way than other providers.

Disclaimer: Information provided by CEX.IO is not intended to be, nor should it be construed as financial, tax or legal advice. The risk of loss in trading or holding digital assets can be substantial. You should carefully consider whether interacting with, holding, or trading digital assets is suitable for you in light of the risk involved and your financial condition. You should take into consideration your level of experience and seek independent advice if necessary regarding your specific circumstances. CEX.IO is not engaged in the offer, sale, or trading of securities. Please refer to the Terms of Use for more details.