Staking cryptocurrencies has always been an attractive way for crypto projects to attain and sustain more users in their ecosystem.
In this article, you will learn all about Shiba Inu (SHIB) staking, including where to stake Shiba Inu, and how many Shiba Inu staking rewards you can get after staking your tokens for a specified period.
Understanding staking
Before we discuss the best places to stake Shiba Inu, it is important to understand the concept of staking. Staking is defined as locking up your cryptocurrency assets to gain rewards in the form of cryptocurrency after a specified time period has passed. Many blockchains work on the proof-of-stake (PoS) mechanism where users stake their cryptocurrencies to support the network’s transactions and in return gain cryptocurrency rewards.
Staking helps in verifying transactions on the blockchain and also plays a key role in securing the blockchain network from malicious activities. For example, if a validator on the blockchain network tries to engage in any illegal activity such as trying to hack the network and gain access to more rewards, they can face big penalties such as losing their status as a validator along with their access to staked tokens.
Overall staking is important for running all about putting efforts to sustain the decentralized network which in the long run becomes a rewarding venture for all of its users.
How does shiba inu staking work?
Now that you understand the concept of staking let’s discuss how Shiba Inu staking works.
There are many ways to stake Shiba Inu, depending on your technical knowledge. Crypto exchanges may be the most convenient option for beginners. Various exchanges offer different interests depending on the amount staked and the staking period so there are many best places to stake Shiba Inu. Payouts range from daily to weekly, monthly, and annually.
Requirements for staking Shiba Inu coin
Before you start to think about staking Shiba Inu tokens, it’s important that you tick off everything on the checklist mentioned below:
1. Crypto Wallet
Shiba Inu is an Ethereum-based ERC-20 token so you need to make sure you have a compatible wallet that can hold your SHIB tokens. Crypto wallets such as Metamask, Trust Wallet, and others are great for buying, selling, and staking Shiba Inu tokens.
2. Buy shiba inu tokens
To stake SHIB tokens you need to buy them and store them in your wallet.
3. Choose a staking platform
Binance and ByBit are among the largest centralized exchanges allowing buying and staking SHIB tokens, with their interest payouts varying daily, weekly, and monthly. Alternatively, you can also stake SHIB on ShibaSwap, Shiba Inu’s native DEX platform.
How to stake shiba inu: step-by-step guide
The process of staking Shiba Inu on a staking platform is relatively straightforward, but it is essential to follow each step carefully. Here is a detailed, step-by-step guide on how to stake SHIB tokens:
Step 1: Acquire SHIB tokens
Purchase SHIB tokens through a reputable cryptocurrency exchange or swap platform, such as Uniswap, Binance, or Coinbase. Ensure you have enough tokens to meet the minimum staking requirements of your chosen platform.
Step 2: Choose a staking platform
Research and select a suitable staking platform based on factors such as security, reputation, fees, and APY. Section 4 of this article discusses the best places to stake shiba inu tokens.
Step 3: Set up a compatible wallet
Create a wallet that supports SHIB tokens and is compatible with your chosen staking platform. Popular wallet options include MetaMask, Trust Wallet, and Ledger. Ensure that you securely store your wallet’s private key or recovery phrase.
Step 4: Transfer SHIB tokens to your wallet
Move your SHIB tokens from the exchange or swap platform to your wallet. Double-check the wallet address before initiating the transfer to avoid any mistakes that could result in a loss of funds.
Step 5: Connect your wallet to the staking platform
Follow the instructions provided by your chosen staking platform to connect your wallet. This process typically involves authorizing the platform to interact with your wallet and allowing it to stake your SHIB tokens.
Step 6: Stake your SHIB tokens
Once your wallet is connected, stake your SHIB tokens by selecting the desired amount and following the platform’s staking procedure. Some platforms may require users to approve an additional transaction to confirm the staking action.
Step 7: Monitor your rewards
Keep track of your staking rewards and claim them according to the platform’s guidelines. Some platforms distribute rewards automatically, while others require manual claiming. Be aware of any fees associated with claiming your rewards, such as Ethereum (ETH) gas fees on decentralized platforms.
Top places to stake Shiba Inu
Every staking platform that offers staking rewards for Shiba Inu tokens is unique in its own right. Here we will explore some of the best places to stake Shiba Inu tokens, be it through centralized, decentralized exchanges, or liquidity pools.
How to stake shiba inu and shiba swap
On ShibaSwap, users earn “Woof returns” through shiba inu staking in a process called burying. Rewards are in xBONE, xSHIB, and xLEASH tokens proportional to the staked Shiba coins and are distributed weekly. Only 33% of staked rewards can be redeemed, with the remaining 67% locked for six months.
To stake SHIB, connect your crypto wallets containing SHIB tokens to ShibaSwap, which supports wallets such as Metamask and Coinbase. Then buy SHIB from an exchange and transfer it to your wallets or buy the tokens on ShibaSwap by swapping them for ETH or other supported cryptos. Once a sufficient amount of SHIB is acquired, the tokens are staked under the Bury option on the platform.
How to stake shiba inu on binance
Binance is the world’s biggest and most popular centralized exchange. It offers both flexible and locked staking. With flexible staking, users withdraw staked SHIB tokens at any time, whereas in locked staking, withdrawal of locked SHIB tokens incurs a loss of interest.
To stake SHIB, users buy SHIB tokens on Binance by creating a retail investor account using a phone number and email address, completing a KYC, and setting up two-factor authentication to secure their account. Shiba inu is then purchased using crypto or fiat currencies like USD.
The staking options are 60, 120 days and flexible savings. The Annual Percentage Rate (APR) varies from 0.005% on flexible savings to 0.3% on staking shiba inu for 120 days. These flexible and locked staking plans are highly in demand and are available on a first-come-first-serve basis.
Shiba inu staking through a pool
Pooled staking is another method of staking shiba inu meaning many participants pool their assets together and form a larger liquidity pool. This increased liquidity allows more transactions, including lending, to take place.
One of the biggest crypto exchanges that allow the pooling of shiba inu is Binance. However, it does not support the other Shiba Inu tokens, LEASH and BONE.
Benefits of staking shiba inu
Staking Shiba Inu for long term investors will always remain an appealing option, as they get passive income from it. Some more key benefits include:
- Provide liquidity to shibaswap: Staking SHIB tokens provides necessary liquidity to ShibaSwap platform which is a key element of the entire Shiba Inu ecosystem.
- Shiba inu increases in value: The more people stake their SHIB tokens, the more the total value locked (TVL), which drives the price of SHIB over time.
- No KYC required: If you aren’t a fan of centralized exchanges, staking Shiba Inu tokens on ShibaSwap saves you from the KYC process and you can earn staking rewards directly in your decentralized wallet.
- Community Engagement: Staking represents a project’s strength in the crypto world. It means that current investors fully trust the future of the token and it also becomes a key marketing point to attract new investors leading to an increase in price.
Downsides of staking Shiba Inu
Despite its benefits, users can also face some disadvantages by staking their SHIB tokens:
- Price volatility: In times of sustained price volatility especially in the bear market, users can lose out on many investment opportunities as their Shiba Inu tokens are staked for a specified time period.
- High requirements for rewards: To earn a decent amount of staking rewards large sums of staked tokens are required, which again, requires a lot of patience and a potential risk of loss in case of a major dump in price.
- Withdrawal Restrictions: As mentioned in section 4 of this article, on ShibaSwap, only 33% of staked SHIB is redeemable immediately, and you have to wait 6 months to receive the remaining 67% tokens which due to price volatility may be a loss-making venture.
- Security Risks: The safety of your SHIB tokens is based on the centralized exchange as well as the native ShibaSwap platform, depending upon where you have staked your tokens. A breach in security may lead to a significant loss in your investment.
Before you can stake Shiba Inu tokens, consider the benefits and downsides of staking Shiba Inu and do your research if it’s worth the investment.
From: crypto.news
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