Staking of Tezos (XTZ) is an attractive option for investors to continuously increase their XTZ balances. Crypto exchanges such as Binance and Coinbase already offer their customers automated Tezos staking. Since December 2019 the hardware wallets from Ledger are prepared for staking from XTZ. Some say it`s the new modern mining.
XTZ at a glance
Tezos (XTZ) has been on the bullrun since the beginning of February 2020, legal problems in the USA have been solved by a comparison. By listing XTZ on leading crypto exchanges such as Binance, Coinbase and eToro, Tezos became increasingly the focus of investors who also look at XTZ's staking program. XTZ are reserved to participate directly or indirectly in the validation of transactions at Tezos. As a reward for the process called Tezos "Baking", XTZ are distributed, similar to BTC for Bitcoin Mining, but without the need for high-performance computers like Bitcoin. The catch is: Setting up your own node at Tezos is considered relatively complicated and discourages some from participating in the staking program. The solution: You can also delegate XTZ and then you don't have to worry about the technology. This is exactly what the Ledger, leading manufacturer of hardware wallets, is now making possible for its customers.
XTZ staking using a Ledger hardware wallet - how does it work?
Ledger explains in a service announcement how baking from Tezos works via Ledger Live. First, an XTZ account on a Ledger Nanos S or Ledger Nano X is released for staking. Now choose from a list of already active validators to whom you want to delegate XTZ. The decision-making aid is the annual return that Baker promises. Because of the distributed Tezos Rewards, the nodes keep a small portion as a fee for the service. Ledger assumes that this model can achieve a good 6 percent annual return for investors. XTZ delegates qualify for the staking program after about three weeks and receive first bonuses after five weeks, and then about every three days. The highlight: The XTZ stored on a Ledger hardware wallet never leave it during staking. They can be removed at any time and they are never in danger of being embezzled by the actual bakers or being stolen from there.
Where can I buy and trade XTZ?
As I already mentioned XTZ is listed on leading crypto exchanges such as Binance. I recommend Coinbase. With a Coinbase account you can also earn up to 6$ in XTZ by taking part in the Coinbase Earn program.