The Crypto Market Crash of 2022 shook the entire world. Fortune 500 companies had to stay afloat while the entire world economy went into a tailspin. It took months of carefully planned strategies and protocols to bring the crisis to an end.
Amidst this, one cryptocurrency that managed to gain popularity was DigiByte (DGB). As of January 2021, its beginning price was $0.01103, but with its resilience and performance, despite the economic downturn, it quickly gained momentum. As a result, many investors wrote it off as a brilliant investment. Notably, its decentralization provides extra security, rendering it difficult to shut off in the face of market turbulence.
Staking is a concept gaining traction in the cryptocurrency world, where users holding coins can lock those coins in trust and let the network utilize those coins for their activities, in return for rewards. For DigiByte, this is a very lucrative reward, demonstrated by its increasing demand, high liquidity, and raising the market cap.
How to Stake
- Choose a wallet – The most popular wallets for staking DigiByte are the official DigiByte Core wallet and the DigiByte Go wallet for mobile. Both wallets are secure and reliable, and support solo staking and pool staking. If you are more technically savvy, you can also use an exchange wallet.
- Download and install the wallet – Once you have selected a wallet, download and install the wallet. Follow the instructions in the software installation guide to do this.
- Acquire coins – Acquire some DigiBytes through an exchange or through buying from someone who owns them. You need at least 5,000 DigiBytes to be eligible for solo staking, and pools normally require a minimum amount of 500-1,000 DigiBytes.
- Stake the coins – Once you have obtained some coins, it is time to stake them. This is done by sending your coins from the exchange wallet to the wallet you are staking from and allowing the wallet to complete synchronization.
- Set up a pool – When staking in a pool, you will need to set up the pool. This is done by selecting a pool from the list of available pools and setting up an account with the pool. Most pools will provide instructions to set up an account and assign coins to the pool.
- Choose a pool option – Once you have set up the pool, you’ll need to select a pool option. There are two main pool options: solo and pooled. Solo staking gives you full control of your coins and the entire reward, while pooled staking splits the reward between the stakeholders in the pool based on their contributions to the pool.
- Wait for rewards – After setting up the pool and selecting a pool option, you can now wait for rewards. Rewards will start to accrue for staking over time, and can often take weeks or months to reach their peak. The rewards are specific to each pool, so make sure to research the rewards structure before joining a pool.
- Withdraw rewards – When you have accrued rewards, you can withdraw them from the pool. Most pools will allow you to set up an automatic withdrawal, but you can also manually withdraw your rewards as needed. Keep in mind that every pool will take a small commission for the pool.
Staking DigiByte is different from mining because you don’t need a powerful computer to process transactions. The rewards you get from staking coins depend on different factors. The number of coins you possess and how long you’ve been staking are the two major factors that determine your reward yield.
In addition, you’ll need to be cautious when staking coins because staking can be quite risky if done recklessly. Staking takes patience, as rewards tend to take a while before you can receive them.
Ultimately, staking DigiByte is a smart investment strategy. Not only is it a way to gain cryptocurrency passively, but you can also grow it slowly while remaining secure and safe. Besides, with its decentralized system, you have an assurance that your coins won’t be affected by market volatility or market crash, considering the time period it takes to receive the rewards. Therefore, being able to stake DigiByte is an interesting idea for all cryptocurrency investors.
Staking DigiByte is the process of locking up your coins in a DigiByte wallet, which then earns rewards for helping secure the blockchain network. By locking up coins for a specific period of time, you are able to earn staking rewards in the form of new DigiByte coins. This process is also known as proof-of-stake (PoS).
Staking crypto can help protect you from crypto price volatility, but it’s important to research the best ways to protect your crypto investments from market crashes. Consider diversifying your portfolio to spread out risk and invest in long-term strategies.
During the crypto market crash of 2022, staked DigiByte would remain in its locked position until the coins were released back to your wallet. None of the staked coins would be affected by the crash, and you would still receive the rewards for staking after the crash.