The year 2022 saw the cryptocurrency market crash for the first time, leaving many investors of digital assets and tokens wondering how to actively participate in the markets and earn a return on their investments. One of the answers came in the form of staking, and one of the key cryptocurrencies to benefit from staking is Fantom (FTM), currently trading at $0.4474.
If you’re looking to invest in the cryptocurrency market but want to incorporate the element of staking into your strategy, staking your FTM tokens might prove to be a good financial decision for you. Let’s take a look at the benefits of staking, and understand the step-by-step process of staking your FTM tokens.
Staking basically implies taking your existing cryptocurrency holdings and locking them up in a staking pool to produce a reward, as a return on investment (ROI). In comparison to trading, which can get very volatile, with staking, the investor is simply collecting their rewards on a technical network. For FTM tokens, the staking rate is estimated to be around 8-10%, and this gives a very lucrative incentive to hold your FTM tokens and get rewarded for doing so!
The primary benefit of staking FTM tokens is increased security for the FTM network. Stakers are rewarded for providing security to the network as they are incentivized to validate the network, as well as detect any possible attacks on the network. Furthermore, staking gives FTM holders a passive income without the need to actively trade in the crypto markets.
- Step 1: Choose a Vault
The first step to staking Fantom is to choose a suitable wallet. It is important to use a reputable and secure wallet in order to ensure the safety of your crypto investments. The most popular wallets for staking Fantom are Coinbase and Atomic Wallet.
- Step 2: Transfer your coins to the wallet
The next step is to transfer the coins you want to stake in your wallet. This can be done through the exchanges where you bought your coins, or you can simply transfer the coins from one wallet to the other.
- Step 3: Choose a Staking Pool
After transferring your coins to the wallet, the next step is to choose a staking pool. The staking pool is where your coins will be ‘pooled’ with other coins and will help increase the potential return on your staking. Popular staking pools are Rocket Pool and Staked.us, both of which have different options for staking rewards.
- Step 4: Enable Staking
The last step is to enable staking. This is typically done through the wallet and it involves selecting a staking option, setting the number of coins to be staked, and the staking period. You can choose to stake for a short period or a longer period depending on your investment goals.
Once staking is enabled, you can monitor your staking rewards through the wallet regularly to check the progress.
Staking Fantom is a great way to earn passive income and there are several options to choose from. Just make sure to do your research and select the option that works best for you.
In conclusion, staking is a great way to not just get a passive income from your FTM tokens but also to help contribute to the security of the FTM network. It is a hassle-free way of earning rewards without the overbearing risk associated with trading. The requirements to stake are also quite low, so you don’t need a large number of tokens to begin staking. Furthermore, the rewards from staking are quite generous, with an 8-10% ROI. All in all, staking Fantom is a secure, low-risk, and passive way to earn rewards from your investments.
FAQs
Staking any cryptocurrency involves some level of risk, but the price of Fantom is fairly stable, so there is less risk involved than staking more volatile cryptocurrencies. Additionally, investing in any asset involves risk and no one can predict the future of the crypto market.
Even in the event of a market crash, long-term staking of Fantom can still be beneficial. You would still be able to earn rewards on your staked coins, which could offset losses if the price of Fantom decreases.
Yes, you can withdraw your Fantom stakes at any time, though you may be subject to any applicable withdrawal fees. Additionally, it is important to keep in mind that you could forfeit any staking rewards earned since the last reward interval if you choose to withdraw your stakes.
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