Staking is an excellent way to earn passive income on your cryptocurrency holdings. This guide covers everything you need to know about staking with Ledger Live.
What is Staking?
Staking involves locking up your cryptocurrency to support blockchain network operations in exchange for rewards. It's similar to earning interest on a savings account.
Supported Cryptocurrencies
Ledger Live supports staking for multiple cryptocurrencies including Ethereum, Polkadot, Tezos, Cosmos, and many others.
How to Start Staking
- Open Ledger Live and select the account you want to stake
- Click on "Earn rewards" or "Stake"
- Choose your validator
- Enter the amount you want to stake
- Confirm the transaction on your Ledger device
Understanding Staking Rewards
Staking rewards vary by cryptocurrency and can range from 3% to 20% annually. Rewards are typically distributed daily, weekly, or monthly depending on the network.
Risks and Considerations
While staking is generally safe, be aware of lock-up periods, slashing risks, and validator performance. Always research thoroughly before staking.