TL;DR: Staking with Zengo lets you earn passive income from your cryptocurrency. With no lock-up periods, high rewards, and easy-to-use features, Zengo makes staking simple and secure, keeping your funds safe and liquid.
Ever wondered how to make your crypto grow while it’s sitting in your wallet? One of the best ways to increase your returns is through staking. In this guide, we’ll walk you through staking basics, how it works, and how you can easily earn rewards with Zengo.
If you’re new to staking, don’t worry! We’re here to guide you through the process.
What is staking and why does it matter?
Staking is a process where you designate cryptocurrency to support a blockchain’s operations. In return, you earn rewards, typically in the form of more tokens. Think of it like earning interest on a savings account with the added bonus of contributing to the blockchain’s security and efficiency.
For beginners, staking can be a great way to generate passive income from your crypto. It’s less risky than trading and tends to offer more predictable returns.
Available staking assets with Zengo Wallet
You can currently stake two cryptocurrencies with Zengo: Ethereum (ETH) and Tezos (XTZ).
- Ethereum Staking involves locking up your Ethereum to support network operations, contributing to the blockchain’s security, scalability, and overall efficiency.
- Tezos Staking (“Baking”) involves delegating your Tezos to a baker who validates transactions and adds them to the blockchain.
Why stake with Zengo Wallet?
- Security: No seed phrase vulnerability, making it more secure than single-factor hardware wallets.
- High rewards: Earn competitive annual rewards, up to 8%.
- Flexibility: Add or remove funds anytime with no lock-up period.
- Auto-compound rewards: Yields are automatically reinvested into the principal.
- Liquidity: Funds always remain liquid and safe in your Zengo wallet.
- Simplicity: Stake using your Zengo wallet in just a few taps.
Lastly, our world-class customer support team is always happy to answer your questions and guide you through the staking process!
How to Stake with Zengo
Staking with Zengo is simple, secure, and accessible. Here’s a step-by-step guide to get you started:
- Download and Setup Zengo: Download the Zengo app from the App Store or Google Play and follow the setup process to create your wallet. Remember, no need to worry about private keys or seed phrases!
- Deposit your Cryptocurrency: Once your wallet is set up, deposit the cryptocurrency you want to stake.
- Choose your Staking Option: From your Zengo wallet, tap on “Actions” and then on “Earn.” Select the asset you’d like to stake and the amount.
- Start Staking and Earn Rewards: Review the transaction, including estimated rewards and network fees. Confirm your selection and start staking. Zengo handles the rest. Note:
- For Ethereum: Rewards may take up to 12 days to appear based on the network.
- For Tezos: Reward payments occur every few days after an initial ~36 day period.
Potential Risks
While staking can be a great way to earn passive income, it’s important to be aware of the potential risks and rewards to help you make informed decisions:
- Market Risk: The value of the cryptocurrency you stake can fluctuate. If the market value drops, so does the value of your staked assets.
- Network Risks: Changes in the blockchain network can impact your rewards. We recommend you stay informed of the latest developments.
- Smart Contract Risk: Staking uses smart contracts to automate processes. While generally secure, these contracts can have occasional bugs or vulnerabilities. To mitigate these risks, we recommend staking an established cryptocurrency on a trustworthy platform with robust security measures.
- Lock-up Periods: Although Zengo offers no lock-up periods for its staking, other protocols and networks might require them. Be aware of such restrictions, especially if considering staking outside of Zengo’s platform.
Staking with Zengo can be a smart way to maximize your crypto investments with minimal effort. By following this guide, you’ll be well on your way to earning rewards and contributing to the blockchain ecosystem!
Ready to grow your crypto? Download Zengo today!