Staking
Earn money while holding crypto assets
Blockchain is an ingenious invention because it creates trust “ex nihilo”, thanks to reliable consensus mechanisms that helps reaching agreement in a network. Proof-of-stake (PoS) is one of the consensus mechanisms which helps determine who validate the next block.
With PoS, cryptocurrencies’ owners running on that blockchain stake their coins and use this stake to get the right to validate transactions and create new blocks. From the user perspective, staking is a way of being rewarded for participating in the network ecosystem, it could be compared to interest savings in a traditional bank.
Why stake with Ledger?
Security
Receive rewards while holding your coins secure on your Ledger hardware wallet.
Multicurrency
Ledger hardware wallets allow you to
securely stake up to 7 coins.
Ease of use
Earn rewards directly from Ledger Live or
use an external wallet.
How to stake coins with Ledger Live
1 Install your coin app on your device and create an account on Ledger Live
2 Migrate your funds to your device using Ledger Live
3 Start staking and earn yield
Compatible with Tezos, Tron, Cosmos, Algorand and Polkadot.
How to stake coins with external wallets
1 Install the crypto app on your Ledger device
2 Choose the appropriate third party wallet to manage your crypto
3 Migrate your funds to your device using the selected wallet
4 Start staking and earn assets according to the blockchain rules
Different ways to generate revenue by staking
Claiming
Users can claim reward by only keeping their coins in their wallets for a given period of time. They get rewards according to the number of coins kept. Reward rate is determined by the protocol and delivered straight to user through an on-chain transaction.
Delegating or Nominating
Users delegate/nominate part of their stake to a validator who will be in charge of securing the network. The reward will come from the validator sharing part of his revenue with those nominating/delegating their stake to him. This reward can be either automatically enforced by the protocol, or depending on the good will of the validator.
Running validators
Users can run their node and become validators. Validators are rewarded directly corresponding to their total stake, incentivizing nodes to validate the network based on a return on investment.
Difference between PoW and PoS
Proof-of-stake is a mechanism to reach consensus like proof-of-work to decide on who validates the next block, according to how many coins you hold (also defined as 'stake'), instead of miners cracking cryptographic puzzles using computing power to verify transactions like they do with Proof-of-Work.
