Frequently Asked Questions

Can't find your question below? ask us via e-mail or @staking_rewards.

Technically, yes you can. However, this is in violation of Binance’s term of service which does not allow servicing clients in the US. It’s important to know that Binance is not legally allowed to offer their services in the US. This may result in challenges during tax filing given that Binance isn’t a regulated entity in the US.

Yes. In the United States, the Internal Revenue Service (IRS) does require you to pay taxes on your cryptocurrency gains and selling or exchanging crypto is a tax event.

Due to the age of cryptocurrency, it is advised to talk to a tax professional as these rules may change often, and you may have a few different ways to handle these tax events.

Kraken Pro is a mobile application that allows a professional trading experience, margin trading, advanced order types and multiple charting and order book display options. The Kraken Pro application interacts directly with their API and is available to any user in any country. It is recommended to use iOS 11 and newer or Android 7.0 or newer for best user experience. Kraken does have a new mobile application for both iOS and Android. It is recommended to use iOS 13 and newer or Android 8.0 or newer. Kraken's new mobile app is available in every country except for Crimea, Cuba, Iran, Japan, North Korea, Syria and the USA.

The IRS system relies on a Voluntary Compliance System. This means that the IRS expects you to report any and all transactions that are taxable and since 2019 that also applies to cryptocurrency. Failure to report could result in hefty fines. If you receive a 1099-K or 1099-B this means that the IRS is guaranteed to know about your cryptocurrency. It is always best practice to keep in good standing with the IRS. Reporting your cryptocurrency transactions is fairly simple, There are many online services that will aggregate your trades into an easy to read and understand form.

Yes, Kraken does in fact work in the United States. You can buy, sell, trade, and even stake cryptocurrency with Kraken.

Some options are currently unavailable such as purchasing cryptocurrency with debit and credit cards.

As of late August 2020, Polkadot has a maximum supply of 1 billion tokens. This maximum supply increased from 10 million after a redenomination. This redenomination was executed in order to make calculation easier by avoiding fractions of a coin in exchange for using more whole numbers.

Cryptocurrency prices are a representation of supply and demand. If the supply is low, and demand is high, the price will rise. The price can also correlate with the coins' utility, the purpose it serves, or public adoption and exchange listing.

Your cryptocurrency exchange typically initiates a transfer and oftentimes will use a middle man such as a service called Plaid in order to securely link both entities.

Sending and receiving cryptocurrency is and can be anonymous but when the transfers involve your bank, your bank sets some precautions. AML and KYC also fall in line with federal laws regarding cryptocurrency and money laundering.

Binance.US is a legitimate company and uses KYC (Know Your Customer). There are 3 levels of verification: Basic, Advanced and Cash Account Verification. Each one of these levels of verification allows you more access to Binance.US. to learn more, read our “Security” section above.

Binance.US is available in the United States with some restrictions. States that are not available to use the service are listed below. These states are not allowed to participate in the trading exchanged based on local regulations that each state holds. Binance.US is working on accepting these states to the platform. Initially there were 13 states that were excluded, that number is now down to just 7 (Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, Vermont).

Binance.US and Binance are separate companies. Binance.US is operated by BAM Trading Services, its CEO is Catherine Coley. Binance is a China-based company run by Changpeng Zhao. Binance.US bears Binance’s name and logo.

Risk, in investment terms, is the possibility of financial loss or damages.

Cryptocurrency, with a few exceptions, appears to be more volatile than the traditional stock markets on average. With the prices moving up and down more quickly, there is a greater possibility for financial loss. There is also a greater possibility for financial gain.

Good practice of risk management states that you should never trade with or invest more capital than you are willing to lose.

Kraken is a very safe service, from servers locked in a cage patrolled by armed guards 24/7 to an internal penetration testing team, Kraken's servers have a high level of protection from both physical and cyberattacks. Kraken also has full reserves which allows 95% of your coins to be housed offline and off the market. These reserves mean that there is always enough for you to withdraw and trade whenever you like.

Many factors come into play when trying to decide if something is a good investment. Things such as time invested, expected ROI and other factors play a major part in deciding if this coin is the right investment for you. Polkadot is already a much better investment than some other coins due to its ability to be staked and earn a steady return. We urge you to read this article, check out the staking options and do some more research to decide if this coin is the right investment for you.

Buying cryptocurrency on Robinhood is one simple way to purchase crypto. One potential issue for many is the inability to transfer crypto out of Robinhood to another exchange or wallet.

To learn more about Robinhood's transfer and deposit limitation, click here.

Cosmos, also known by its ticker ATOM, is the main coin running on the Cosmos ecosystem which is designed to facilitate scaling, interoperation and communication between independent chains. Tools used to build the Cosmos ecosystem are all modular, making it a popular option for many development teams.

Chainlink (LINK) is a decentralized oracle network that aims to provide reliable, taper-proof inputs and outputs for complex smart contracts on any blockchain.

Chainlink is an open source technology that is developed by a large community of researchers and developers

Polkadot's main use case is to allow various blockchains to transfer messages such as current price or value in a trust-free fashion.

In simple terms, Staking is the act of locking crypto tokens to receive rewards. By doing so, it also supports the security and operations of a network. It's a win-win to those who are financially aware and would like to support the industry.

A smart contract is a program stored on a blockchain that is run when predetermined conditions are met. The most common use for them is to automate an agreement such that all participants can be certain of the outcome without any intermediary's involvement. Contract executions are trackable and irreversible.

Smart contracts allow for transactions and agreements to take place without a central authority or external source.

Ethereum 2.0 is an ambitious multi-year network upgrade of Ethereum that will achieve better scalability, security and decentralization. For more details, we recommend to read through the design goals outlined in Ethereum 2.0's official spec or Vitalik's write-up on Serenity's design rationale to learn more about the guiding principles of Ethereum 2.0's design.

Ethereum staking is the act of running a validator on the Ethereum network, which requires 32 ETH to be risked or "staked" to ensure a validator behaves correctly (bad behavior is penalized with loss of ETH). Staking can also be done by joining a staking pool and collectively depositing 32 ETH.

The validator is responsible for processing data and transactions on the Ethereum network. By doing this you get rewarded with transaction fees.

To learn about the risks involved in staking ETH click here.

Ethereum (ETH) is the second largest cryptocurrency in terms of market cap. Addresses on the Ethereum blockchain can be regular wallets or "smart contracts"; pieces of code that are run when a transaction is sent to them. This allows creating new tokens on top of the network (see the ERC-20 token standard) which most of the other coins are built on. Examples include ATOM, XTZ, LINK, USDT, USDC and many more.

Proof-of-Stake is a type of algorithm that is computationally lightweight for generating a new block on the blockchain. Unlike Proof-of-Work, which requires a lot of computing power to work hard to find solutions to a cryptographic problem, with Proof-of-Stake the possibilities to generate new blocks are proportional to one's shares in a cryptocurrency.

Proof-of-Work is a type of algorithm that is computationally intensive for solving a mathematical challenge, with the requirement that someone who wants to answer the challenge has to prove that they've done that computation. Common applications of the Proof-of-Work are mining bitcoin and preventing denial-of-service attacks. Proof-of-Work is used for generating coins and securing the network. However, this is not the only way to secure a cryptocurrency or network. A cryptocurrency can be secured additionally by using the 'Proof-of-Stake' algorithm.

Blockchains and smart contract cannot access data external to their own network. Many smart contracts need external data in order to operate correctly, this could be any data from price to quantity and much more. In order to access this data, an Oracle network is used such as Chainlink (LINK), Augur (REP) or Band (BAND).

The Oracle network will gather off-chain data and translate it to on-chain so that smart contracts can work and reflect data properly.

Proof-of-Stake is an alternative to Proof-of-Work. Both systems share the same goal of reaching consensus but the method of doing so is vastly different. Proof-of-Work requires a great deal of computing power to solve a mathematical puzzle, whereas Proof-of-Stake rewards participants who have a high stake in the network and follow the protocol requirements (for example, uptime, internet connectivity and more).

Binance.US is approved to be used by US customers whereas Binance blocks US customers from using their site. Binance is not legally allowed to offer their services in the US. Binance.US has a smaller coin coverage compared with Binance, and as a result, less options for staking.

  • Kraken (Able to stake DOT)
  • Bitfinex (Able to stake DOT)
  • KuCoin (Able to stake DOT)
  • OKEx (Able to stake DOT)