Brokered Staking

Understand key crypto terminology essential for Bank Secrecy Act (BSA) compliance. This guide clarifies terms to help you navigate regulatory requirements effectively.

Brokered staking is a service provided by intermediaries that allows individuals to earn rewards by participating in a staking network without needing to manage their own nodes or wallets. In this setup, the broker handles the complexities of staking, such as maintaining the infrastructure and ensuring optimal performance.Users typically create an account with the broker and deposit their tokens. The broker then combines these tokens with those from other users to stake them on various networks. This pooled approach often allows users to benefit from staking rewards that might be difficult to achieve on their own due to minimal holdings or a lack of technical knowledge.Brokered staking can provide convenience and accessibility for those who want to participate in staking but may not have the time or expertise. However, it also introduces a level of trust in the broker, as users must rely on them to manage their assets securely and effectively.

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