In this article, I will discuss the How to Stake Tokens on Exodus Wallet. Staking makes it possible to earn rewards when a cryptocurrency is locked in the wallet in order to support the network security.
The Exodus platform is incredibly easy to use, which is helpful for novice users as well as those who have experience. Let’s go over every step in the process of staking tokens.
What is Staking?
Staking refers to locking up your cryptocurrency funds to receive benefits as a reward. Participants of a network referred to as validators or delegates are rewarded in cryptocurrency.
Additionally, staking is a major activity in proof of stake blockchains (PoS) whereby participating in the blockchain network replaces the power hungry mining in proof of work (PoW) systems. Passive income received from staking strengthens and decentralizes blockchain network solutions.
How to Stake Tokens on Exodus Wallet Step-by-Step
Redeeming a Stake on Exodus is easy. Take a look at how simple it is to stake tokens on Exodus Wallet using Cardano (ADA) as an example.
Download the Exodus Wallet
Get the Exodus Wallet on your mobile or desktop device and get it set up.
Add ADA Coins
Add the ADA tokens to your Exodus Wallet. If ADA is not visible, you can enable it by clicking on “Add More” in the wallet.
Staking Option
Go to the ADA wallet on Exodus and click on “Earn Rewards” which is also the staking option.
Select a Validator
Select a staking pool or validator from the options given to you.
Begin Staking
Type in how much ADA you want to venture and click confirm.
Monitoring and Managing Your Staked Tokens
Managing your staked tokens is crucial to make sure you keep maximizing your rewards as well as your overall security. Here’s how you can do it:
Track Rewards
Always remember to check your staking rewards and balance of your wallet.
Re-Stake Rewards
If applicable, you can compound your earnings by re-staking your raised rewards.
Stay Informed
Check the validator’s uptime and performance regularly. If the validator becomes too unreliable, switch to one that is.
Understand Unstaking Periods
When taking out your staked assets, always remember to check the lock-up or unstaking periods.
Tips for Successful Staking
Here’s how to successfully stake:
Select Trustworthy Validators
Use validators who have strong reputations, and who have excellent uptime and low fees. This helps with getting rewards while staying secure.
Spread Your Staking
Increase the number of validators or networks you use in order to minimize risk and enhance potential reward.
Pay Attention to Network Maintenance
Keep track of major protocol revisions, changes in staking structure, and new security features to adapt and safeguard your staked tokens.
Remember The Lock Up Terms
Some tokens have a minimum duration they stay staked before they can be withdrawn, so ensure you balance out your liquidity and withdrawal terms properly.
Increase The Amount Staked To Improve It
Use staking services that have excellent rewards and bonuses for long term or high volume staking.
Maintain Safety
Allow to share private keys. Keep your staked assets in a secure wallet, with two-factor authentication enabled, for extra safety.
Pros & Cons
Pros:
Beginner’s Staking Experience: The wallet design on Exodus is simple making it seamless for beginners to stake tokens.
100% Access to Your Assests: Private keys give you absolute control over your gated tokens and increases security.
Additional Features of Staking Tokens: Apart from easily managing your tokens within the wallet, you can also purchase or exchange them.
No Minimum Stake Restrictions: There is no minimum amount of funds that can be used for staking, making it more suitable to casual cryto users.
Stake Tracking: Tracking of staking rewards is done directly in the wallet and needs no extra services.
Cons:
Few Supported Coins for Staking: Unlike dedicated staking services, Exodus has fewer coins available which users can stake.
Lack of Delegated Proof-of-Stake (DPoS): DPoS are not offered and there are very few protocols available for Exodous users.
Fees Upon Withdrawal: Having no staking fees is a benefit but the circumstances of transaction or withdrawal fees could get bury some of the profits.
Limited Earning Potential with Certain Coins: Most coins on the wallet cannot earn coins through staking.
Always Online: Since staking rewards are given to you for as long as your wallet is connected online, if the connection is disrupted, your earnings might suffer.
Conclusion
The process of staking tokens on the Exodus Wallet is simple, making it easy for users to manage their assets while conveniently checking their rewards in the wallet.
Beginners can easily use the EXP Wallet due to the straightforward design and built-in exchange features; however, users must beware of the small handful of supporting tokens and missing Delegated Proof-of-Stake (DPoS) features.
Ultimately, Exodus is a useful tool for basic staking since it acts as a non-custodial wallet and does not require a user to rely on other third party services.
