Cosmos (ATOM) Staking Overview
Cosmos is one of the leading digital assets in the cryptocurrency space. It provides investors with the potential for any POS cryptocurrency’s highest staking rewards in the industry.
Staking Cosmos coins is the process of locking up your coins in the Cosmos network and earning rewards for validating transactions on the network. Blockchains that can grow and collaborate with one another make up the Cosmos ecosystem. Let’s understand how to stake Cosmos efficiently for good returns.
How to Stake Cosmos (ATOM)?
Staking Cosmos coin is relatively straightforward, but there are some key steps to take for a successful investment. There are two methods by which an investor can stake ATOM tokens. Both of the methods of staking are explained. Follow the step-by-step guide to staking Cosmos.
Staking Cosmos on a Custodial Wallet
Staking Cosmos on a custodial wallet is an easier and smoother process.
Step 1: Login to your account
Step 2: Enter the cosmos coins into your wallet
Step 3: Choose the coins you need to stake
Step 4: Wait for the completion
Step 1: Login to your account
First, users must register an account with a custodial wallet service provider.
Step 2: Enter the cosmos coins into your wallet
Once an account is created, users must deposit their Cosmos coins into the wallet.
Step 3: Choose the coins you need to stake
After the coins have been deposited, users must select the staking option and choose the number of coins they wish to stake.
Step 4: Wait for the completion
Finally, users must wait for the staking process to be completed, which can take anywhere from a few days to a few weeks.
Staking Cosmos on a Non-Custodial Wallet
Staking Cosmos on a non-custodial wallet can be slightly more complicated than staking on a custodial wallet.
Step 1: First, users must create an account with a non-custodial wallet provider.
Step 2: Once an account is created, users must deposit their Cosmos coins into the wallet.
Step 3: After the coins have been deposited, users must select the staking option and choose the number of coins they wish to stake.
Step 4: Next, users must select a staking pool and configure the settings according to their preferences. At this point, you will be shown a list of validators to whom you can delegate your ATOM tokens. Choose the desired one by clicking the delegate icon on the right side of the validator.
Step 5: Finally, users must wait for the staking process to be completed, which can take anywhere from a few days to a few weeks.
Also read: Where to buy Cosmos?
Popular video guides on Staking Cosmos (ATOM)
Best Places to Stake Cosmos (ATOM)
1. Binance
Binance is one of the most popular cryptocurrency exchanges and one of the best places to stake Cosmos coins. It is easy to use, and the interface is intuitive. There are also a variety of coins available on Binance, which means that users can diversify their investments. .
Pros
- Offers a Cosmos Zone where you can stake multiple coins together,
- Offers simple earn and flexible defi staking for Cosmos
- Low fees and high rewards
Cons
- Staking Cosmos doesn’t allows you to keep 100% of your rewards because Binance is a centralized exchange
2. Coinbase
Coinbase is another popular platform for staking Cosmos coins. It is a regulated and secure platform that is easy to use and offers various coins. Coinbase also offers a staking pool, which allows users to pool their coins together to get higher rewards.
Pros
- Offers a separate premium version for staking Cosmos.,
- You can earn up to 5.75% APY on staking Cosmos on Coinbase.
Cons
- You can’t manually restake rewards if your pending rewards are less than 50 ATOM.
3. OKEx
OKEX is another popular platform for staking Cosmos coins. It is a secure and reliable platform that is easy to use and offers a variety of coins. OKEX also has a staking pool, which allows users to pool their coins together to get higher rewards.
Pros
- Staking Cosmos is comparatively convenient on OKEX
- It offers high-interest staking opportunities too
Cons
- Limitation on withdrawals on yields from staking Cosmos.
Also read: Cosmos Pricing Prediction
Benefits of Staking Cosmos (ATOM)
- Low risk: It is a relatively low-risk investment strategy as the coins are locked up in the network and cannot be moved or sold. ,
- Passive income: If you own ATOM you may stake it to help keep the Cosmos Hub secure. You get incentives in freshly created ATOM and a cut of the transaction fees that the blockchain collects in return for locking your ATOM. You can cast a vote on Cosmos Hub governance decisions by staking ATOM. ,
- Secured Network: The Cosmos network collaborates with Tendermint BFT to build a more secure system; validate transactions; and allocate blocks to the blockchain.
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Most frequently asked questions on Cosmos Staking
What is the minimum amount of Cosmos you have to stake?
The minimum amount an investor needs to stake is 0.05 ATOM. 0.05 ATOM is enough to ensure that you also have a stake and have paid transaction fees.
How long does it take to stake Cosmos?
It takes 21 days to stake cosmos. The network has a 21-day lockup period to guard against long-range assaults. Your account won’t get any rewards for staking that money during this time, and they will be transferable once the duration is over.
What are the risks of staking?
Staking cosmos carries certain risks, just like any other investment. One of the main risks is that the reward rate may be lower than expected. This could result in users earning less than they had hoped. Another risk is that users could lose their tokens if their wallet is hacked. There is also a hard slash conducted in ATOM by validators, and your ATOM coins are fortified.
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