For this blog post I plan on deviating from the normal mining efforts to look at a quick how to guide on staking Tezos (XTZ). The main reason I'm doing this is I believe it is a safer option, especially for non-traders, to grow your crypto balance without needing to know a vast amount about price analysis etc. That said none of the information below should be taken as financial advice, if you're investing in crypto then be prepared to lose that money markets change in a heartbeat.
As it isn't the purpose of the article to have a deeper dive into XTZ, here is a link to another article by Allen Walters on publish0x. This has a nice clear roundup and is an excellent place to start to learn more about the Tezos project.
While I wont go into too much detail it is worth mentioning, albeit briefly, what staking is. Ledger give a nice little summary here:
"Staking is the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network and, in return, holders are rewarded for their contribution. This can be compared to earning interest in a traditional bank."
So what we can take from this is that there are really just two things we need to get started on staking of XTZ. The first will be a wallet and then afterward we'd need some funds. I'll explain the wallet below, as for the funds you can sign up to coinbase earn and get $6 from XTZ https://www.coinbase.com/earn/tezos, that is where my funds started from, otherwise once you've the wallet set up as below you can buy funds through that, or send fund bought on an exchange.
Step 1: The Wallet
I've already mentioned that ledger offers this, as do Coinbase and other places. However, for this guide I'm using Trust Wallet you can get this from your app store on your device or at the following address: https://trustwallet.com/
Setting up the wallet is reasonably straight forward:
- 1 - After downloading you will need to click 'create new wallet' (if you don't have one already)
- 2 - Now you'll be shown 12 words all with a number to the left them. Make a note of these somewhere safe.
- 3 - Immediately afterwards you'll be asked to enter these words again in order
- 4 - Finally you'll see this image pop-up which means your wallet is ready
- 5 - Next we need to add Tezos to the wallet, we can do this by clicking the plus icon
- 6 - The next screen will show us a bunch of tokens, first click on the search bar and type in "Tezos"
- 7 - Then we can toggle the slider to the green side so that XTZ will appear in our main wallet screen
Step 2: Staking
- 1 - Firstly if you want to buy XTZ through the app you can click on "Buy" in the top corner
- 2 - Alternatively, if you're sending XTZ from another location just click on "Receive" to see your wallet address and send the funds to that
- 3 - Once you have funds we want to click on the "more" section
- 4 - You'll be presented with a few options. We're interested in the second one "Stake"
- 5 - From this screen you'll indicate how much of your funds you want to stake
- 6 - Then you can click to see a list of possible companies to stake with and the relative percentages they will offer
- 7 - Once you've chosen the how much and who bits click "next"
- 8 - You see one final screen showing the details of the stake, all you need to do is click "send" and that is it.
- 9 - When you return to the main page you'll see a few extra details:
- a) You will see your staking amount below the XTZ balance in your wallet
- b) You will see the staking transaction and, as fund interest is distributed, you see transactions coming in
- Congratulations you're staking XTZ! (Note: you wont see rewards immediately it take 21 days before they kick in but after that, you will get them every couple of days).
Couple of things to remember, your funds will remain staked until you unstake them and this doesn't mean you sent them to anyone else or that you cannot use them. Your funds have not left your wallet at all, they are just being held there to support the operations of a blockchain network. If anyone ever tries to tell you to send them XTZ so they can stake it for you then it is likely a scam, remember stay safe out there in the wild west.
Hope you enjoyed the guide, good luck y'all!