After researching how to stake ETH and ADA, I was also very interested in finding out whether I could stake my other cryptos? Since I also have some Cosmos (ATOM) And Polkadot (DOT) I was very excited to find out their staking options. Before we jump into it I wanted to mention that this article is not financial advice and only for entertainment purposes!
LEDGER STAKING
As you probably know I always search for a way to stake my crypto. I am especially excited if this works directly through the Ledger device. In both cases, ATOM and DOT, it is possible to store and delegate them through your Ledger device!
For this, you just have to follow a few simple steps which I will describe as follows:
- Create a DOT or ATOM account on your LedgerLive device
- Transfer your coins over to your ledger
- Go into account, select the validators and start earning rewards
HOW TO SELECT VALIDATOR
After you clicked on the “Earn Rewards” button you are getting to the following window. There you can select the validator that you want to stake your funds at. It is important to know that recently the minimum stacking amount for DOT is 120. For Cosmos there is currently no minimum amount! It is also important to know that only the top 125 validators are getting the rewards so you have to do some research before delegating your funds.
Because there is slashing, which basically means that you can loose part of your funds if the validator does something wrong or tries to influence the market, you should diversify your funds on different validators. After selecting the right validators you just have to pay a small network fee and you are good to go and can earn your staking rewards.
After you earned your first rewards there is the possibility of getting paid out or to compound it. Pay attention here! Sometimes the rewards that you are eligible to are less than the network fee. Fortunately, the LedgerLive app will tell you that:
CONCLUSION
If you believe in these projects this is a good way to earn some extra money on the side just by holding the asset. For me personally it makes sense since both of these projects are very interesting and have a lot of potential for the future. I also think it is nice to do it over your personal wallet because you have the safety on your side. The only thing that people have to pay attention to is the locking period of the asset and the slashing potential of the validator but by doing some research before delegating this should not be a big problem.
Published by ga38jem on Publish0x on the 10th of October 2021
Published by ga38jem on LeoFinance on the 10th of October 2021
