The crypto sphere has seen a surge in popularity due to a specific type of altcoin – meme coins. Dogecoin was the pioneer of this category, but currently, the biggest player is Shiba Inu. The success of Shiba Inu can be attributed to its supportive community and its profitability for investors.
Staking Shiba Inu tokens is a way to make money in addition to investing in them. You can earn rewards for holding and supporting the network
by participating in the staking process.
This article will provide a comprehensive guide on how to stake Shiba Inu, why it is worth doing, and where you can do it. Whether you are a seasoned crypto investor or new to the game, this guide will explain the process of staking Shiba Inu and earning rewards through it.
What Is Staking?
Blockchains come in two types: Proof-of-Work (PoW) and Proof-of-Stake (PoS). Bitcoin, Ethereum, Litecoin, Dogecoin, and others operate on PoW blockchains, where transactions are verified and added to new blocks through nodes solving complex mathematical problems.
In contrast, PoS blockchains such as Cardano (ADA), Solana (SOL), Polkadot (DOT), VeChain (VET), etc., have transactions verified by the nodes through the process of staking crypto.
Staking is the process of holding a certain amount of a particular cryptocurrency in a wallet to support the network and validate transactions. In return, the staker is rewarded with a portion of the network’s transaction fees and new coins that are generated.
This allows the staker to earn passive income while supporting the network and increasing the security of the blockchain.
Staking is becoming increasingly popular as a form of passive income, as it allows investors to earn rewards without actively trading or managing their assets. By choosing a PoS blockchain and participating in staking, individuals can potentially earn higher returns compared to traditional forms of passive income, such as savings accounts or bonds.
What is the Process of Staking Shiba Inu?
Shiba Inu token’s total supply was created at the time of its launch, so it can’t be mined. However, users can stake their tokens and receive rewards through a process called Bury. By staking their Shiba Inu coins, users not only add liquidity to the pool but also serve as validators, earning xBONE, xSHIB, and xLEASH tokens in proportion to their staked Shiba coins.
Shiba Inu tokens have a very active and large community among all tokens. Due to this, the token can be traded on many major cryptocurrency exchanges worldwide, and many of these exchanges also support staking Shiba coins.
Binance and Crypto.com are two of the largest centralized exchanges that allow their users to purchase and stake Shiba Inu coins, with interest payouts varying from daily to weekly or monthly. Also, Shiba Inu coins can also be staked on a decentralized exchange using a cryptocurrency wallet like Metamask. Shiba Inu has its own decentralized exchange, ShibaSwap, and the ecosystem encourages staking SHIB on the platform.
Benefits of Staking Shiba Inu
Now that we understand the process of staking Shiba Inu let’s consider why it is a good idea. Some of the benefits include:
- You can earn a steady passive income from your SHIB investments without engaging in risky trading if you have a substantial amount of SHIB tokens.
- As the Ethereum network transitions to a proof of stake mechanism, staking SHIB can allow you to be part of this shift, which is becoming the standard in the blockchain industry.
- By staking your SHIB tokens, you can contribute to the liquidity of Shiba Swap DEX.
- As more SHIB tokens are staked over a long period, it increases the total value locked, which can drive up the price of SHIB tokens.
How to Stake Shiba Inu on Binance
Staking Shiba Inu on Binance, the largest and most widely used centralized exchange is a straightforward task for new users. Binance provides two options for staking, flexible and locked.
With flexible staking, you can withdraw your staked SHIB at any time, while in locked staking, withdrawal of your locked SHIB tokens results in a loss of interest.
To stake SHIB tokens, you must first purchase them on Binance. It is simple and straightforward to buy Shiba Inu on Binance; all you have to do is create a retail investor account with your phone number and email, complete the KYC process, and set up two-factor authentication for security. After that, the process of buying Shiba Inu is straightforward, and you can purchase it using fiat currencies like USD.
Binance provides a variety of staking options with durations of 10, 30, 60, 90, or 120 days and the option of flexible savings. The interest rate, also known as the Annual Percentage Rate (APR), can range from a low of 0.50 percent for flexible savings to a high of 12.09 percent for staking Shiba Inu for 120 days.
You can select the plan that suits you best and earn rewards through staking. However, it’s important to note that these plans are filled on a first-come-first-serve basis and tend to fill up quickly.
Shiba Inu has shown itself to be one of the top-performing cryptocurrencies since its inception, surpassing even the largest cryptocurrencies. However, it is important to remember that cryptocurrencies are highly unstable and not governed by any governmental regulations.
This article is not to be considered financial advice, and one should only invest in crypto with funds that they can afford to lose. If you do choose to invest, staking is a great option for earning interest and creating a steady passive income.
Christopher is a highly skilled writer who possesses a deep understanding of the interplay between financial markets and technology. His goal in writing is to deliver expert analysis through written content that is easy for readers to comprehend.
With a keen interest in cryptocurrencies and the blockchain industry, he has been among the earliest contributors to the Coin Decimal Crypto Blog.
- CryptocurrencySeptember 24, 202310 Best Coin Dealers in Vancouver of 2023
- CryptocurrencySeptember 22, 2023How to Get a Crypto Credit Card in Australia: A Step-by-Step Guide
- CryptocurrencySeptember 22, 2023The Top 10 Crypto Credit Cards Available in Australia
- CryptocurrencySeptember 22, 2023Avoiding Tax Traps: 10 Tips for Staying Compliant with Australia’s Crypto Tax Laws