Do you ever thought about to buy Polkadot and stake it? I'd like to share my short story about it and let you know how I decided about DOT staking. So... what will you read in this post:
- What kind of advantage you will get with polkadot staking
- How you can stake DOT as an independent hodler, if you use a physical or independent wallet
- How to get the best staking rewards for polkadot easily.
If you will find this post useful please check my social platforms. When I write this article I just started my facebook and twitter page. So I appreciate it. :) Let's stat!
Basically when you read this article I think you have basic knowledge about the crypto world, but please let me explain a little bit the first steps to earn passive income with Polkadot.
The goal of Polkadot to create a decentralized web3 platform where users controls everything. Polkadot creates an easy to use platform to create application and connect them to the decentralized world. Of course we could talk a lot about Polkadot technology, if you like to to do it just read everything about DOT technology on their website.
Why staking is important as a crypto investor?
As a crypto investor it is more important for us that we can stake DOT and we can earn passive income on it. What staking means? If you searched for this topic you possibly know but let me explain it in a nutshell.
Really short explanation: If a coin can be staked you just need to hold the crypto, and let the whole blockchain to use it. Because of holding the coins "actively" like this you will get rewards. You can stake coins what works with Proof os Stake "mechanism".
Different crpytos pays different rewards in the staking pools and there are many-many little features what will affect your income, but let's call it a basic explanation, but if you would like to read more you can do it here: What is Staking and how staking works?
What kind of advantage you will get with Polkadot staking?
Let's talk about the reward system. When you stake a cryptocurrency you have two basic ways to do it. First one is when you make the staking manually for example from a Ledger or other physical wallet or some kind of hosted wallets. Second option is to use a "crypto brokerage" as Binance for example. Let's compare the two ways and with the explanation we will find the answer to the question: How to earn the most staking rewards for dot?
Staking DOT by your own
First and most important information, that currently when I write this article you need at least 10 DOT to nominate and stake. But it is also really important that not everybody will get rewards who has 10 DOTs as the target amount changes continuously. So plan to have more than 10 to be sure. And if you have this you will be ready to choose a so called nominator. Please let me to summarize the steps here.
- You need to create a Polkadot account
- ...then visit the "Polkadot-JS UI" main page
- ...choose the Staking menu under the Network tab
- Click on "Account actions". Possibly loading time will be a little long.
- Click on the "+Nominator" button on the top
- Choose your Stask and Controllel accounts.
- Select the amount what you want to Stake and bond (You will have to wait 28 days to unbond)
- Click next and on the screen select the nominators.
...and if the nominator is active and live than you will get rewards with time. But here is another question: How to choose the best nominator for Polkadot? You know it is also a great question, as choosing a profitable and proper DOT nominator is not easy, and it is a continuous work. How you can read on Polkadot own website: "It is important to do your own research before nominating as there is a risk (of slashing) if your validators misbehave."
Simply there are a lot of validators where the commission is simply 100% and you get nothing for example, but I made another mistake what is really annoying and costed me unnecessary transfer fees. So when you start to stake you have the possibility to choose "max amount" on the website. What is not directly highlighted that you need to pay also a fee when you unbound your DOT, so if you bond and stake the max you won't be able to withdraw it. Also it is a real pain to choose a normal validator, and if you have no real experience in it, or you try to find the proper one it can cost you also a lot.
So where we are now on the passive income journey? Possibly nowhere. Like this you need time to find proper validators, check them every time if they are active or not. Paying attention to the reward levels and for the costs.
I'd like to have free time, and safe income what I can count with. I really like staking because it can be a passive income without any further steps. So let's show you how I do it. Possibly it will be too short, because I do not need to explain it too much:
- Click here to create a Binance account in few minutes or log in if you already have an account.
- Go to the Staking page and choose DOT
- Choose the duration of your staking period. You will see also the expected reward also for it, then simply click the "Stake Now" button.
- Choose the amount what you would like to stake, and you are ready. You can easily choose max too as the withdrawal is free after the locked staking period. You will see a popup like this:
Quite simple for Polkadot I think compared to the "own managed" version. You don't need to change validators, you won't be able to do mistakes to nominate any fraud team, you don't need to manage your staking every day. It simply automated, and you need to check your income after the locked period. That's it. Do you agree with it that is quite simple and awesome? Let me know your opinion in a comment! Thanks
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