Staking cryptocurrency coins is becoming a popular way to generate passive income. The amount of rewards that can be made from staking range from 5% to around 30%. There are many cryptocurrency projects that allow for staking. Not only can you collect reqards, your staked coins allow participation in the direction of the cryptocurrency project.
What is Staking , and Why Does it Matter?
Binance.com published an article titled “What Is Staking” In it, they state: Staking is the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. Essentially, it consists of locking cryptocurrencies to receive rewards. In most cases, the process relies on users participating in blockchain activities through a personal crypto wallet. From the user perspective, staking is a way of being rewarded for participating in the network ecosystem.
Why stake on Ledger?
Staking on your own hardware wallet is a relatively new development in the cryptocurrency space. The main reason for staking on your own hardware wallet is for security.
In the article Staking – Earn money while holding crypto assets on Ledger.com, the reasons listed are:
- Security: Receive rewards while holding your coins secure on your Ledger hardware wallet.
- Multicurrency: Ledger hardware allows up to 7 coins to be staked
- Ease of use: Earn rewards directly from Ledger Live
The Process Of Staking on Ledger
- Install your coin app on your device and create an account on Ledger Live
- Migrate your funds to your device using Ledger Live
- Start staking and earn yield
Cryptocurrencies available for Ledger Staking
Currently, only Tezos and Tron are available to stake on Ledger Nano and Ledger Live.
How to stake Tezos on Ledger
The article Staking Tezos with Ledger Live describes the steps in detail
- Select the Tezos account you want to delegate in Ledger Live
- Choose your validator (baker) by comparing estimated reward rate
- Verify and confirm delegation information on your Ledger hardware wallet
How are Tezos Staking Rewards Earned
Rewards are earned by delegating tokens to be baked on their behalf. Baking
is what Tezos refers to as the action of signing and publishing a new block in the chain.
Only your baking rights to a validator: The XTZ you have stay on your wallet and remain yours. Ownership of your assets remain on your hardware wallet while staking via delegation and your staked Tezos assets remain safe.
How to stake Tron on Ledger
The article Staking Tron With Ledger Live describes the steps in detail.
The current annual yield on Tron is around 7%, minus the Super Representatives’ fees. The rewards received depend on the SR you vote for. Depending on the Super Representative, Rewards can be claimed every 24 hours or receive it directly on your account.
Step 1
Freeze TRX into Tron Power
Freezing is similar to putting money from a current account to a saving account. The more TRX you freeze into Tron Power (TP), the more votes you have. 1 TRX frozen = 1 Tron Power = 1 vote
Step 2
Use your Tron Power to vote. You can vote and choose Super Representative (SR) candidates you want to support by using your Tron Power (TP). 1 TP = 1 vote for 1 SR. You can divide your votes between up to 5 SRs. The election is done through a 6 hours window voting cycle. At the end of each cycle, the 27 SRs receiving a maximum number of votes will be elected.
Step 3
Earn your rewards
Super Representatives (SR) can set a reward rate. Depending on this rate, they will redistribute some of their earning to their voters. The voters can claim their rewards every 24 hours or they will receive it directly on their account depending on the SR they chose.
More Information on Staking :
Staking cruptocurrency will become more commonplace as the future finance infrastructure is built. Hopeully, this guide will help you get started in understanding how you can state cryptocurrency yourself, and gain rewards. Additional articles to help with your research are below:
Tezos Baking & Delegation Guide
Tron (TRX) Reward Calculator and Benchmarks
Is Staking still profitable as of TODAY?
Reporting Cryptocurrency Taxes on Inactive Assets
