Ledger staking

Ledger staking

Why should you stake on Ledger?

First of all, it is a totally secure way of staking. Ledger Live is backed up by the most trusted hardware wallet available. Their wallets are independently certified and designed to resist sophisticated cyber attacks. 

You can gain rewards while holding your crypto assets in your Ledger hardware wallet. Additionally, it supports multiple cryptocurrencies, Ledger hardware wallet allows you to safely stake up to 7 coins at the same time, while also being extremely easy to use. 

You can earn rewards either directly in the Ledger live app or you can use an external wallet. It is accessible, you don’t need to own 32 ETH to become a network validator. With Lido, you can participate in the network with any amount of ETH you want. 

Staking coins through Ledger Live

Firstly you have to install the app of the coin you want to stake on your wallet. The next step is to create an account on Ledger Live, when you finish creating an account you then transfer your funds to your wallet with Ledger Live. 

After all of that is done you can finally start staking crypto to passively earn money. Ledger Live is compatible with Ethereum (ETH), Polkadot (DOT), Tezos (XTZ), Cosmos (ATOM), Algorand (ALGO), and Tron (TRX).

Staking coins through external wallets

The first step is similar to the previous method. You have to install the app of the coin you want to stake on your hardware wallet. After that, you choose the appropriate third-party wallet to manage your cryptocurrency. When that is done you transfer your funds to your device using the selected wallet. Now you are ready to start staking crypto through an external wallet.

How does staking through Ledger work?

There are 3 ways to stake through Ledger. The first is to claim, the second is to delegate and the third is to run validators.

Claim

You can earn rewards by simply keeping your coins in your wallet for a given period of time. The reward is dependent on the amount of coins you keep in your wallet. The rate of reward is determined by the protocol and sent to you through an on-chain transaction.

Delegate

The second way to earn is to delegate. You delegate part of your stake to a validator, who is in charge of securing the network. They then share part of the revenue with you. The reward rate is either automatically enforced by protocol or depends on the validator's goodwill.

Run validators node

You can run your own node to become a validator. Validators are rewarded directly corresponding to their total stake. This encourages nodes to validate the network based on return on investment

Is there a minimum amount to stake?

No, you don’t have to stake and keep a minimum locked amount in order to become a validator. Ledger users can participate in the network and stake any amount of ETH they want. For each Ether you stake through Ledger with their partner Lido, you receive a stETH token. stETH is a token that represents the staked Ether in Lido, combining the initial deposit value with rewards. You can exchange, send or sell these tokens.

Is there a risk to staking crypto with Lido through Ledger?

There are some risks to staking using Lido. There is a possibility Lido could contain a bug or a smart contract vulnerability, however, Lido code is open-sourced, audited, and covered by an extensive bug bounty program to minimize this risk.

 

Ledger is also not responsible for the volatility of crypto prices. Drops could sometimes outweigh any interest you earn in rewards.


Published: 03/30/2022
Ledger staking
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Cryptocurrencies in article

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Ethereum Ethereum
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Tezos Tezos
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$ 1.34 B
Polkadot Polkadot
$ 6.40
0.28 %
$ 7.92 B