Coin staking is getting popular among cryptocurrency investors. Coin staking allows cryptocurrency holders to earn passive income on the coin he or she is holding. With the increase in stacking pools and wallets, more and more crypto exchanges are copying the coin staking feature.
What Is Staking?
Basically, staking is the process whereby an investor locks a certain amount of coins that are based on the Proof-of-Stake consensus algorithm or many of its types for any desired period of time.
The ability to stake any amount of cryptocurrency enables an investor get the right to vote and to participate in the governance of the network.
Coin staking can be profitable whereby an investor stakes an amount without using it and he will be rewarded.
Types of Proof-of-Stake Consensus Algorithm;
There are various types of the Proof-of-Stake consensus algorithm. The most popular among them is the Delegated Proof-of-Stake (DPoS). With DPoS, investors can commit their balances in the form of votes, which will be used to elect a new particular number of delegates.
Just like in a democratic government were citizens cast their votes, it is these delegates who are elected that will manage the blockchain operations on behalf of the people who gave their vote for it.
Crypto Staking Using Wallets
Investors holding their cryptocurrencies on the designated wallets can take an active part in the staking process.
Usually, this might require sending your coin to a staking pool or leasing it oit to a node. Some other times, some wallets can easily add your coins for staking on request.
The Ledger hardware wallet is a popular coin staking wallet and storage when it comes to digital assets or cryptocurrencies. The wallet provides two options for coin staking—using the Ledger Live or the External wallet apps.
Using Ledger Live wallets will require the user to install the cryptocurrency app on the device and then create an account on Ledger Live. Once the account has been created, the funds will be migrated and staking will start automatically.
On the other hand, External wallets work similar to the Ledger Live only that the user will need an appropriate third-party wallet to manage his or her assets. The migrated funds will allow the investor to earn rewards.
This is currently one of the most secure wallet out there in the crypto space because it is a cold storage wallet, which are known to be secure. So far you can only stake Tezos within the Ledger live.
However, one can stake other coins using third party wallets (like TRX using TronScan wallet).
Atomic Wallet is yet another multi-cryptourrency wallet. Atomic wallet is compatible with desktop android and ios. It has Windows, macOS, Ubuntu, Debian, and Fedora versions.
In other to start staking with this wallet, one should transfer the coins to the staking address the wallet provides. Once the staking rewards are received, the investor can exchange them to FIAT currency or a different digital asset.
He can also use it through a built-in cryptocurrency exchange. Atomic Wallet allows staking for Tezos, Cosmos, NEO, VeChain, and Ontology.
This is a popular multi-cryptocurrency wallet. It is desktop and mobile compatible. The Exodus wallet can easily be integrated with the hardware wallet Trezor.
Exodus wallet allows users to stake the cryptocurrency, following a recent partnership with Switchain. Switchain is designed to hold the records only instead of having a custody.
At present, the Exodus wallet offers staking rewards for Ontology and Neo. New coins will probably get to be added in the same manner.
Trust Wallet is a new recent popular multi-cryptocurrency wallet. It is a “secure multi-coin wallet,” which is available on mobile devices working with Android and iOS.
The staking setup process on Trust Wallet is similar to the other staking wallets in the category. Once the user is done downloading and installing it on his device. He will have to send the cryptocurrency to the staking address shown to start his staking journey.
Trust Wallet has many cryptocurrency that one can stake to receive rewards and they includ: VeChain, TRON, Callisto, TomoChain, Tezos, Cosmos, IoTeX, Algorand, and more to come soon.
Crypto Staking Ways: Exchanges.
Another way to stake and earn rewards is through crypto exchanges. The leading cryptocurrency exchange on this is binance. Binance has made available a large number of cryptocurrencies for on-exchange staking.
Exchanges that support staking includes; Binance, Coinbase, Kraken, OKEx, KuCoin, Huobi, Bithumb, Poloniex, and more. Moreso, some offer zero-fee staking for a particular coin.
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