In 2021, the crypto market saw an unprecedented growth that made many investors turn their eyes towards it and forced them to rethink their strategies. One of the most attractive coins for a variety of reasons has been Basic Attention Token (BAT). Staking BAT has become a popular strategy to leverage the increasing returns, and in this article, we’ll explore the basics of how to stake BAT.
First of all, it is important to understand what staking is and how it works. Staking is a type of cryptocurrency investment that requires participants to hold a certain amount of coins for a specified period of time and earn rewards for doing so. Generally, this period can span anywhere from a few days to a few years. Staking is in essence, a way to lock in your investment and increase its potential rate of return.
So, let’s explore the steps you need to take to stake Basic Attention Token. The first step is to purchase a reasonable amount of BAT. The current price of BAT sits at around $0.2587, thereby creating a reasonable entry point for many investors. After you have acquired some BAT, the next step is to figure out which wallet you want to use to store it. Both online and hardware wallets are available, though online wallets are considered the most secure.
How to Stake BAT
Step 1: Download and Install a Supported Wallet
The best wallet to use for staking Basic Attention Token (BAT) is the Brave Wallet which is already integrated into the Brave Browser. You can also use an un-custodial wallet, such as Trust Wallet or MetaMask.
Step 2: Add your BAT tokens
Once you’ve downloaded and installed your wallet of choice, you will need to add your BAT tokens to the wallet. Depending on your choice of wallet, you may need to acquire the tokens from an exchange such as Coinbase or Binance first.
Step 3: Connect your wallet to a staking pool
Once your BAT tokens are in your wallet, you can connect to a staking pool by visiting the staking pools’ websites. After setting up your wallet and choosing the pool, you will need to sign in to the pool page and send your wallet address. The staking pool will then send you a transaction address where you will need to send your staked tokens.
Step 4: Stake your tokens
Once your tokens are sent to the staking pool, you can now start staking your BAT tokens. Depending on the pool’s configuration, you will either receive a percentage of the rewards as soon as you stake your tokens or when tokens are unstaked. Check the pool’s terms and conditions before staking.
Popular staking pools for BAT include Rocket Pool, RocketDAO, and ETH 2.0 Staking.
Step 5: Earn rewards
Once you have staked your BAT tokens, you will start to receive rewards in the form of BAT tokens. Rewards will vary depending on the pool’s configuration and the amount of tokens staked by other stakers.
Once you have successfully procured a wallet, it is advisable to transfer some BAT to it. How much BAT you stake largely depends on how much return you are expecting. Staking BAT for longer than the required minimum period generally allows for greater rewards. Finally, make sure to periodically monitor your staking rewards to see how much you are earning over time.
When it comes to staking BAT, the advantages are numerous. BAT staking can provide substantial long-term rewards when done judiciously. Furthermore, it is an excellent way to leverage the appreciation of its underlying technologies. Additionally, staking is not capital intensive and allows you to invest with a small amount of initial capital. Lastly, staking is a low-risk, high reward strategy which offers investors a way to diversify their portfolios.
Conclusion
Overall, staking Basic Attention Token can be a great strategy for many investors, particularly those with a longer-term investment horizon. By placing your BAT in a secure wallet and periodically monitoring your staking rewards, you can benefit greatly from the appreciation of the underlying technology. Staking BAT is low-risk, hassle-free and offers investors the opportunity to fetch attractive returns over the long run.
FAQs
While there are numerous wallets that support Basic Attention Token, we recommend using the native Brave wallet to stake your BAT tokens.
When you stake your BAT, you will earn rewards based on the amount of tokens you have staked and the amount of time they are staked. Depending on the market conditions, these rewards can range from a few dollars per month to up to 10%.
If the value of the asset you have staked has decreased, then the amount of rewards you can earn for staking may also be reduced. In the case of the crypto market crash of 2022, your BAT rewards may have been significantly reduced due to the crash in the market.