Sirwin
Sirwin

Stacking crypto to earn passive income (Part 1: Tezos)

By cryptoversys | Cryptoversys | 22 Mar 2023


One popular strategy for investing in cryptocurrency is stacking, also known as staking. Is an attractive option for investors who want to earn passive income from their crypto investments.

There are several benefits to stacking cryptocurrency. First and foremost, it allows investors to earn additional cryptocurrency without having to actively trade or mine. This is especially appealing to those who are new to the cryptocurrency market or who prefer a more hands-off approach to investing. Many cryptocurrencies offer higher rewards for stacking than traditional savings accounts or other investment options. This can provide investors with a greater return on their investment over time.

Step-by-step guide on how to stake Tezos (XTZ) in the Kukai wallet:

Navigate to the Kukai official website.

Kukai official website

Create a new wallet or restore an existing one using the seed phrase. Once you have created or restored your wallet, you need to add XTZ to it. Click on the "Receive" button and copy the Tezos address shown.

Send XTZ from your exchange or other wallet to the Tezos address in your Kukai wallet. Once the XTZ is in your Kukai wallet, navigate to the "Tezos" tab in the dashboard and tap on View in Explorer link

Choose the Tezos "BAKERS" you want to delegate to (You can choose a baker from the list of bakers shown or manually enter a baker's address). Click on the "DELEGATE" button. 

Enter the amount of XTZ you want to delegate and confirm the transaction. Wait for the transaction to be confirmed on the Tezos network. This may take a few minutes to a few hours. Once the transaction is confirmed, you will see your XTZ staked with the chosen baker. You will start earning rewards for staking your XTZ.

Tezos Explorer

That's it! You have successfully staked your Tezos using the Kukai wallet. Remember to regularly check your rewards and update your delegation if needed.

Here are some of the benefits of staking Tezos (XTZ):

Earn passive income: Staking Tezos allows you to earn passive income in the form of rewards for securing the network. The rewards are typically paid out in XTZ, and the amount you earn is proportional to the amount of tokens you have staked.

Security: Staking Tezos helps to secure the network by participating in the consensus mechanism. This helps to prevent attacks on the network, such as double-spending and 51% attacks.

Decentralization: By staking Tezos, you are helping to decentralize the network by participating in the consensus mechanism. This helps to prevent centralization of the network by a few large players, which can be a risk to the network.

No lock-up period: Unlike some other staking protocols, there is no lock-up period for staked XTZ in Tezos. You can withdraw your XTZ at any time without penalty, making it a flexible option for investors.

Governance: Tezos is designed to be a self-amending blockchain, which means that stakeholders can vote on and approve changes to the protocol. By staking Tezos, you become a stakeholder and can participate in the governance process.

No special hardware required: Staking Tezos does not require any special hardware or technical knowledge. You can stake your XTZ using a wallet that supports staking, such as the Kukai wallet.

Staking Tezos can be a profitable and secure way to earn passive income while helping to support the network and promote decentralization. 

Read how to use TensorCharts for Profitable Trading

 

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