How to Stake Ma...
How to Stake Matic?
With Staking becoming a popular way to earn an income in the Crypto world, Matic offers a load of benefits and opportunities to earn Rewards. In the following article, we will be understanding how to stake Matic and earn Rewards on the network.
Built by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun in 2017, Matic is a native cryptocurrency on the Polygon network. Polygon is a Layer 2 scaling solution that ensures to improve the performance and growth of the Ethereum Blockchain. It aims to address some of the major issues that Ethereum faces, including high gas fees, slow transaction times, and limited scalability.
For quicker and less expensive transactions, the Plasma framework has been implemented by Polygon Network. The Plasma Framework creates a secondary network which co-exists with the Ethereum mainnet. The advantage of this secondary network is that it speedily completes the transaction and returns back the outcome to the main-net. Which in turn, makes the transactions on the Ethereum mainnet more affordable and faster and also scalable at the same time.
Also Read: Introduction to Ethx
Staking is a process by which you can hold your cryptocurrencies in a wallet and lock them up in a blockchain network to participate in the network's consensus mechanism and earn rewards for their contribution.
Staking has been a part of many Proof-of-Stake (PoS) networks including Matic as well. By staking Matic, the user helps in securing the network and for which in return, they can earn Staking rewards for their contribution.
The Answer to how to Stake Matic is a relatively simple process. Here are the steps to follow:
For staking Matic, you first need to set up a wallet that supports the token. Wallets like Metamask, Trust Wallet Ledger and many others support Matic. You can choose as per your convenience.
After creating the wallet, you will have to buy some Matic tokens. To buy the token you can visit cryptocurrency exchange websites like Binance, Coinbase etc.
Once you purchase the token, you’ll have to transfer it to your wallet. To do this, copy your wallet address and paste it to the withdrawal section of the exchange you bought the tokens from.
Also Read: Liquid Staking Derivatives
After transferring the tokens, choose the staking options that suit you the best. Staking options include the duration of the stakes, minimum staking amount and the rewards offered.
After finalizing your Staking Options, you need to give the confirmation for the stake. All the information regarding the stake including duration of the stake, staking amount would be visible on the confirmation page.
Once you’ve staked your matic, you’ll start to earn rewards. The rewards will be paid in the Matic Tokens, and you can choose to withdraw your tokens or reinvest them upon your own choice.
Several Factors such as network’s staking participation, amount of Matic staked and duration for which you staked the Matic decide on how much Matic you can earn from Staking Matic. Generally, you can expect 4% to 15% of annual returns on staking Matic. However, we should always consider the market risks and conditions before Staking Matic.
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