With the crypto market in 2022 seeing a crash, more people are looking to increase their returns on Investment (ROI). Staking Zcash (ZEC) is one way to do this. Zcash is the digital currency of the open-source cryptocurrency network, and with its starting price of $45.32, it’s a worthwhile asset to consider when looking to increase your ROI.
In this article, we’ll go through a step-by-step guide on how to stake Zcash, explaining not only the methods to do so but also why staking Zcash is a good strategy.
- Step 1: Setting Up a Zcash Wallet
The first step to staking Zcash is setting up a Zcash wallet. Think of this like a virtual bank account for you to store, send, and receive Zcash — or any other cryptocurrency, for that matter.
One popular choice is the Ledger Nano X, due to its integrated multi-signature and safe wallet feature, which ensures that only you can access your ZEC.
- Step 2: Purchasing Zcash
Once you’ve set up a Zcash wallet, you need to purchase Zcash (or ZEC) on a cryptocurrency exchange. Coinbase and Binance are two of the main exchanges that offer ZEC, so you can use either of these to buy the coins you need.
- Step 3: Transfer your Zcash Coins to Your Hot Wallet
The third step is to transfer your newly-purchased ZEC from the cryptocurrency exchange to your Zcash wallet. This process is known as “hot staking”, where the crypto is kept in an online “hot wallet”.
To do this, you need to enter your Zcash address on the exchange and initiate the ZEC transfer. You’ll then see the coins arrive in your Zcash wallet within a few minutes.
- Step 4: Research Delegated Staking Protocols
Now that you’ve got the coins in your wallet, you can move on to the fourth step: researching delegated staking protocols.
Delegated staking protocols let you outsource the task of staking your Zcash to trusted third parties, who then return part of the reward to you. These can include cryptocurrency exchanges and staking pools, but you’ll need to do your due diligence in researching the best ones to use.
Step 5: Stake Your Zcash
Finally, you can stake your Zcash coins. All you need to do is select the protocol you wish to use, and enter your Zec address. The staking pool or exchange will then help you to distribute your coins among the network, and voilà — your coins are staking!
The Benefits of Staking Zcash
Staking Zcash can be a great way to increase your ROI, as you can earn percentage rewards when you stake it. This is because Zcash is a proof-of-stake (POS) cryptocurrency, which means that you need to stake (or “lock”) your coins to earn rewards.
Plus, the delegated staking protocols allow you to easily outsource the task of staking your coins, so you don’t have to worry about the technicalities. All you need to do is research the protocols, and you can start earning rewards with minimal effort.
Overall, staking Zcash is a great strategy to increase your ROI, especially when combined with other strategies such as holding, day trading and swing trading. So if you’re looking for a way to get more out of your ZEC investments, staking Zcash might be the right option for you.
Staking Zcash is a process by which users can earn rewards for holding Zcash coins over a certain period of time. By staking Zcash, users can receive a return on their investment in the form of newly minted coins.
No, you do not need to invest additional money to stake Zcash. All you need to do is hold the cryptocurrency and let it do the work for you.
The crypto market crash in 2022 may have an effect on Zcash staking, however it is difficult to determine the exact impact at this time. It is important to remember that the staking process is an investment and as such is subject to risk. As such, it is recommended that users research carefully and only stake Zcash if they are confident in its long-term prospects.