The Polkadat network is actually a new generation of blockchain networks. Polkadat is designed with this goal in mind to replace older blockchains with traditional ones. By connecting blockchains together, this network improves their scalability, security, speed, etc.
To learn more about this network and its native token, we suggest the article What is Polkadat? read the
In the continuation of this article, we are going to provide methods for Sticking Polkadat introduce to you so that you can earn money with its profit.
A brief introduction to Polkadat
The Polkadat network was launched for the first time in 2016 and immediately, its native token named DOT was introduced. The main goal of this network is to provide a decentralized internet with the help of which blockchains are able to connect to each other. The application of the Polkadata native token is to connect several blockchains to a network and perform parallel transactions.
Each blockchain has a consensus algorithm. For example, Bitcoin based Proof of work consensus algorithm (POW) and uses it to mine tokens and validate transactions. Polkadat network is also based on a system Candidate Proof of Stock (NPOS) Works. Based on this algorithm, native network tokens are awarded to users in order to earn rewards and validation, which is the same process as Polkadat staking.
How to stick Polkadat
To better understand the cryptocurrency staking process, let’s start with an example. When you put some money in your bank account, the bank charges you some monthly interest due to the use of your asset during this period. Sticking is the same way. By locking or staking your asset, you help validate network transactions.
You can stake some of your tokens to help the administration of the Polkadata blockchain network. After staking Polkadat, you will be rewarded which is paid in DOT tokens. Depending on the platform you use for staking, the amount of your reward will be different. In general, the best platforms for Polkadat staking are Software wallets And there are hardware and digital currency exchanges that we will talk more about in the following. The methods of sticking Polkadat are:
- Staking with digital currency exchanges
- Sticking with digital currency wallet
- Sticking with masternode
Polkadata staking in digital currency exchanges
One of the simplest methods of digital currency staking is to use Digital currency exchanges Is. This method is very simple and is considered a good option to start staking. For this, you must first choose a suitable and reliable exchange for you. Deposit your assets to the exchange account and start staking Polkadata. Of course, if you don’t have Polkadata assets, you can buy dot from that exchange. Some suitable exchanges for staking Polkadat are:
- Binance exchange
- Kraken exchange
- ByBit exchange
- KuCoin Exchange
- Bitfinex exchange
Polkadata staking in Binance exchange
Binance exchange Compared to other digital currency exchanges, it is a very suitable option for beginners. Because the Binance exchange pays relatively more rewards compared to other exchanges. On the other hand, you don’t need to lock your assets to stake Polkadad. Your asset will be flexible and this feature is very good for beginners. Of course, since Iranian users are not able to use the Binance exchange, we suggest you try other exchanges for Polkadata staking. Also, Binance exchange has a relatively complex user interface. You can use other exchanges that have a simpler user interface.
Polkadata staking on the Kraken exchange
If you are looking for an exchange with a simple user interface, we have you covered Kraken Exchange We suggest Kraken is one of the few top exchanges that allow you to stake 11 digital assets. Transfer your digital asset to Kraken exchange wallet and start staking. By staking the DOT token, you can get up to 12% of Kraken, APY, or annual percentage return.
Your assets on the Kraken exchange do not need to be locked. Whenever you want, you can withdraw your assets from staking mode and transfer them into your wallet. The only downside to staking on the Kraken exchange is the 15% commission it takes on all assets.
Polkadata staking in Baybit exchange
bye bit Another good exchange for flexible and short-term staking. This exchange is considered an outstanding trading platform due to the volume of transactions and high liquidity. Traders who choose BuyBit exchange for staking can also get rewards by staking several other tokens.
The only caveat about Bybit exchange is its 1.77% APY bonus for staking. The bonus amount of this exchange is much less compared to other exchanges. Polkadata staking is very popular on BuyBit exchange because of the flexibility of the assets, but the reward is much lower.
Polkadata staking in Kocoin exchange
Coin exchange It is one of the popular exchanges for Iranian traders. Because there is no limit for Iranian users. Kocoin exchange supports more than 700 digital currencies and has a trading volume equivalent to 7 billion dollars. For this reason, it is a good option for digital currency staking and has the possibility of flexible staking. Before starting staking in this exchange, you can read Polkadata analysis well. The reward amount of this exchange for staking is equivalent to 7.31% APY, which is less compared to Kraken exchange.
The thing about staking on Kocoin exchange is the time to get the reward. Only when the staking period ends, the bonus will be credited to your account. The negative point is the 15% commission fee of Kocoin exchange, which is considered relatively high.
Polkadata staking in the Bitfinex exchange
Phoenix bit A digital currency exchange with all the good features for a transaction including high traffic, high trading volume and high liquidity. To stake Polkadata on Bitfinex exchange, just stake your DOT tokens in the exchange wallet and get 7% APY bonus.
An important feature about the Bitfinex exchange is the minimum asset for staking. That is, there is no minimum for staking DOT tokens. Having only 1 Polkadat token, you can start staking and have 1.7 Polkadat by the end of the year.
Staking Polkadata in digital currency wallets
Another method of staking Polkadat is to use digital currency wallets that support Polkadat. If your assets are relatively large, we suggest you to definitely use hardware wallets. Because hardware wallets have higher security and due to keeping assets in an offline environment, your assets are less vulnerable to hacking. Some of the wallets that allow you to stake your coins are:
- Ledger Nano hardware wallet
- Cypto.com software wallet
- Trezor hardware wallet
Polkadata staking with Ledger Nano wallet
Many professional traders of the digital currency market, Ledger hardware wallet It is considered as one of the best hardware bags. Because this wallet keeps your assets offline. Hence, it is very safe and reliable. The reward for staking Polkadata in Ledger Wallet is up to 14% APY. But before starting staking, you should know that you need at least 80 Polkadat tokens to start. You don’t need to pay a commission to use Ledger wallet, but you should know that the cost of buying a wallet is relatively high.
Polkadata staking with Crypto.com wallet
Platform Crypto.com It is one of the most popular platforms among digital currency traders. Because it offers various services including NFT market, token receipt, cash transactions and Visa card. This wallet only comes in a mobile version and is a great option for beginners. Also, in addition to Polkadat, it is possible to stake other tokens, and to start, you can stake with one token.
With flexible staking, you can earn up to 1.45% APY and with 1-month or 3-month staking, you can earn up to 14.5% APY.
Polkadat Staking with Treasure Wallet
Another good option for staking large assets. Trezor hardware wallet Is. This wallet, like the Ledger wallet, uses an offline environment to store your assets, which protects your assets from hacking and cyber attacks. It is possible to stick Polkadata through this wallet. Just connect it to your system and transfer your assets to the wallet. Now you can start staking your Polkadat.
Trezor wallet includes recovery phrases to keep your assets safe. You should never forget or give this recovery phrase to someone else. With the recovery phrase in hand, you can also recover your asset in another wallet.
Risks of Polkadata staking
In general, the buying and selling of digital currencies and activities in this market are always faced with dangers and risks. One of the reasons is the instability of the digital currency market, which allows you to lose at any moment. Some of the dangers and risks of Pokadat staking are:
A) Asset locking: Some staking platforms only have locked stock option for staking. Locked stock means that you are no longer able to use your stock during the staking period. But on platforms that have flexible staking, it is possible to change the duration of staking.
b) Hacking: Different platforms, including digital currency exchanges and software wallets, are suitable for Polkadata staking. Both platforms are vulnerable to hacking, and if you’re looking for a way to keep your assets safe, hardware wallets are the way to go. Of course, software wallets also have dozens of security measures, but they are not suitable options for keeping large assets.
c) fine: People with large stock pools will also have to pay larger fines. This is against people who have less shares and pay less fines.
Earn money through Polkadat staking
If you are looking to make money from staking Polkadat, it is better to choose a platform for staking with high profit. For example, the, Kraken Exchange up to 12 percent and Ledger wallet It gives you up to 14% profit. These platforms can give you a good profit in exchange for Polkadat Stakes and make you earn money.
Writing how to stick Polkadat for the first time in Wallex blog. appeared.
