Shiba is a digital currency created in 2020 as a meme coin copy of the Doge currency. It works in a decentralized environment with an emphasis on community participation and decentralization. The Shiba ecosystem comprises SHIBAI, a token that rewards holding and staking, and SHICOD, which governs and rewards. Shiba enjoys an enthusiastic market reception but to sustain its success, it needs to find more use cases and needs to penetrate further.
How to Stake Shiba (SHIBA)
Staking allows the holder to earn rewards while also contributing to the network with Shiba Inu (SHIBA). Follow these steps to start staking your SHIBA tokens effectively:
Step 1: Acquire Shiba Inu Tokens
Buy SHIBA tokens from trustworthy centralized and decentralized cryptocurrency exchanges such as Binance, Crypto.com, or Bybit. Sign up with the exchange, go through the verification process, fund your account, and purchase SHIBA tokens from the exchange marketplace.
Step 2: Secure a Compatible Wallet
Keep your SHIBA tokens in an ERC-20 compatible wallet like MetaMask or Trust Wallet. Install the wallet by downloading it from the respective developers and retain recovery phrases or keys as required.
Step 3: Transfer Tokens to Your Wallet
Withdraw your SHIBA tokens back to your wallet from the exchange. Find the receiving address of your wallet start the withdrawal process on the exchange and finally confirm the transaction. Cross-check the address to avoid any mix-up during the transfer.
Step 4: Research Staking Platforms
Choose the staking platform, which accepts Shiba Inu tokens. Research decentralized finance (DeFi) platforms, centralized exchanges (CEXs) or decentralized exchanges (DEXs). Check their requirements and conditions, their charges, and possible returns.
Step 5: Connect Your Wallet to the Staking Platform
Link your wallet with the selected staking site. For the connection via your digital wallet, go to the platform’s website, click “Connect Wallet” and go through the process of authorization.
Step 6: Stake Your Tokens
Go to the staking option on the website’s homepage. Set the quantity of SHIBA tokens you want to stake, confirm the transaction, and approve all the smart contract interactions on your wallet.
Step 7: Monitor and Claim Rewards
Your staking rewards can be viewed in the platform’s interface in the staking tab. Complete the staking process and redeem the rewards at respective time intervals; if you want to unstack your tokens, then follow the procedure on the platform.
Popular video guides on Staking Shiba (SHIBA)
Best Places to Stake Shiba (SHIBA)
Binance is one of the most popular international cryptocurrency trading platforms with a lot of coins listed and low trading fees. Low transaction fees, a wide variety of coins, and the possibility to perform trading, staking as well as fund their account using various methods make Binance one of the most popular platforms. However, it is less regulated and prohibited in the USA. With Binance, you can enjoy up to 33.12% APY!
Pros:
- Industry-leading volume with a huge number of tokens and coins list
- It also has ultra-low fees compared to many of the company’s competitors
- Extremely quick transactions
- Promising investment opportunities that can be staked through the platform
Cons:
- The official site is not available in the USA
- Not as strictly regulated as some other exchanges
- No central office which can be a downside for some clients
ByBit is one of the most popular cryptocurrency exchanges that is widely used at the moment, which is characterized by low commissions and great depth. It provides a stable trading platform with additional features for professional traders. The platform is good for anonymous trading with trading bonuses, but the platform is not very rich in various crypto assets and does not accept fiat currency.
Pros:
- Low fee structure and high level of turnover
- Fully anonymous trading
- Promotions such as attractive trading bonuses and rewards
- Usability of the registration for web and mobile applications.
Cons:
- Cryptocurrency offerings are not very diverse
- There is no option to fund accounts with fiat currency
ShibaSwap is an autonomous platform and part of the Shiba Inu (SHIB) ecosystem that serves as a DEX. It started as a copy of UniSwap, but it has become a full-fledged DeFi platform offering token exchange, liquidity services, and staking. It has advantages such as powerful support from the community and potential integration with Shibarium but has problems such as low turnover and standard DeFi instruments. The Shiba Inu staking reward can reach 16.5% APY.
Pros:
- Different DeFi instruments such as exchange, staking, and yield farming
- Community-based governance that enabled users to contribute
- Support from the SHIBA token and other related coins namely SHIB, LEASH, BONE
- Will also be used as the foundation for the further development of Shibarium DeFi.
Cons:
- Lower volume and total value locked than other DeFi platforms
- Impermanent loss exposure of liquidity providers
- Does not have many unique features; many tools are shared in the DeFi environment
- Staking and yield farming rewards come with lock-in periods
Benefits of Staking Shiba (SHIBA)
Staking Shiba Inu offers several significant benefits for investors:
Passive Income
One of the benefits of holding Shiba Inu is that it can generate passive income through staking. When you stake your SHIBA tokens, they are kept on staking platforms and you receive more tokens as a bonus. This makes the process of making money in the market consistent and does not require constant buying and selling of the securities to make profits in the short term but rather acquiring more of the securities with time.
Price Appreciation
Staking enables one to hold more tokens with an assumption that Shiba Inu will be worth more in the future, this is especially beneficial for those who believe in SHIB. Since Shiba Inu may have the possibility of rising in value, the amount you are staking becomes more valuable hence increasing your capital gains.
Incentivization
The staking process is intended to encourage users to keep their tokens rather than constantly exchanging them. This reduced trading also has the potential of bringing stability to the price of the token, reduce volatility, and create a more coherent investment climate.
Community Participation
Most staking models come with governance components where users can partake in the decision-making process within the ecosystem. Staking your SHIBA may help you unlock voting where you get to decide the future of the Shiba Inu project.
Increased Security
In the blockchain networks, when staking is increased, it can improve the level of security. While this may differ from the structure of the network, this staking can make the blockchain more stable and less prone to attacks as it rewards nodes for honest behaviour and participation.
Frequently Asked Questions
What is Shiba Staking?
For Shiba Inu, staking entails putting your tokens in a staking pool to be used to earn more tokens. This occurs across several platforms where the interest rates vary depending on the quantity of SHIBA that is staked and the time frame it is staked for. Some exchanges provide the option of daily, weekly, monthly, or even yearly payouts while others may have a fixed payout frequency.
Can You Mine Shiba Token?
Shiba Inu is not mineable in the same way as Bitcoin (BTC) or Ethereum (ETH), which are built on the proof-of-work (PoW) consensus algorithm to verify transactions and integrate new blocks into the chain. However, SHIBA is an ERC-20 token, and the ERC-20 tokens are not mined but created.
Mining SHIBA is not possible because this token is made through smart contracts and programming which is a method of creating tokens and not mining them. As for the token holders, the options to earn more tokens practically are staking, or participating in the liquidity pools.
How Can You Buy A Shiba Token?
To buy Shiba tokens, follow these steps:
- Step 1: Select a Cryptocurrency Exchange: Select a credible platform such as Binance, Crypto.com, or KuCoin where SHIBA is traded. Sign up to the platform and go through identity confirmation if needed.
- Step 2: Buy SHIBA Coins: Fund your exchange account and place an order to buy SHIBA tokens ranging from small amounts to large amounts of coins.
- Step 3: Store the SHIBA Coins: To guarantee the safety of your SHIBA tokens, you have to transfer them to a secure wallet.
Is Shiba Safe For Future Investment?
Whether or not to invest in Shiba is a matter of how much risk one is willing to take. The crypto market is one of the most unstable markets that can experience a vast increase or decrease in the prices of cryptocurrencies. Like with any investment, but especially in the context of cryptocurrencies, it is always important to analyze the market and the company behind the investment. Take your time to make a detailed evaluation of your investment approach and tolerance to risk.
