Shiba Inu has emerged as one of the most talked-about digital assets. This token offers an exciting opportunity for its holders to earn rewards through staking. In this guide, we walk you through how you can stake Shiba Inu, explore the best platforms to stake on, and give you some insights on maximizing your earning potential.
- Shiba Inu offers an opportunity for crypto investors to earn rewards through staking.
- Staking Shiba Inu can be done on both decentralized exchanges and centralized exchanges.
- Staking Shiba Inu on Binance requires one to have a minimum of 800 SHIB tokens, and users can choose a staking period of 30, 60, 90, or 120 days.
- The potential risks that you need to know when staking Shiba Inu
What is Shiba Inu?
Shiba Inu is an ERC-20 altcoin that features the Shiba Inu- a Japanese hunting dog breed, as this token’s mascot and central theme. With its impressive growth, Shiba Inu is considered one of the best shitcoins to buy, with many touting it as “the Dogecoin killer.”
Like many meme coins, Shiba Inu was launched as a joke rather than a digital product with some utility. The token was created in August 2020 by an anonymous individual or group called Ryoshi.
A significant attribute of Shiba Inu’s creation was a concern about what could happen if a cryptocurrency was 100% run by its community.
What is Shiba Inu Staking?
Staking is essential in cryptocurrency when it validates and maintains a blockchain network working effectively. Staking activities happen by locking a particular amount of your digital assets in a wallet, which paves the way for earning a passive income through rewards.
To stake Shiba Inu means locking up your SHIB tokens in a pool to earn rewards. The staking of Shiba Inu happens on different exchanges, where there are varying interest rates based on the number of tokens staked and the staking duration. Payouts are available daily, weekly, monthly, or annually based on the exchange you use.
Staking provides liquidity for exchanges and support for node validators, which is vital for proof-of-stake (PoS) protocols.
Related Article: Yield Farming vs. Staking
Where to Stake Shiba Inu?
Shiba Inu tokens, over the years, have gained a large and active community, making them available on almost all major crypto exchanges globally. You can stake Shiba Inu through prominent decentralized exchanges like Uniswap, which usually gives a higher return on investment (ROI) than other DEXs.
Investing through a decentralized exchange paves the way for you to earn fees whenever tokens are traded by providing liquidity to a SHIB/ETH pool.
The other decentralized exchange where you can stake your Shiba Inu is ShibaSwap. ShibaSwap is a decentralized exchange developed by the Shiba Inu community, designed explicitly for SHIB tokens. The platform has a user-friendly interface and attractive staking rewards.
On the other hand, you can also stake Shiba Inu on centralized exchanges. CEXs work differently from DEXs because they require you to transfer your SHIB tokens onto the platform and stake them.
Best Place to Stake Shiba Inu
Centralized exchanges (CEXs) can be seen as the best platforms to stake Shiba Inu in terms of ease of staking and a lower barrier. These crypto exchanges are simple to use, and there is no need for a validator. The most prominent exchanges are Binance and ByBit.
Shiba Inu staking on Binance launched on August 22, 2021, was for its customers to earn SHIB token rewards. For many users, Binance offers a fixed-term arrangement where the SHIB tokens can be locked for either 30, 60, 90, or 120 days. As such, the rates for SHIB will then vary according to the staking period.
Staking on Binance offers various advantages, including the fact that it offers the highest rates for SHIB compared to other crypto exchanges. However, it is essential to note that the exchange is not present in the US.
On the other hand, ByBit also offers high rates for flexible SHIB staking. ByBit is mainly popular with traders looking for margin and futures trading opportunities. As an investor, you can buy Shiba Inu on the exchange and transfer the tokens to a flexible staking wallet to earn SHIB rewards.
How to Stake Shiba Inu on Binance
To stake your Shiba Inu tokens on Binance, you need a verified account that has at least 800 SHIB tokens.
Step 1: To begin staking, log in to your Binance account using either the mobile app or the website.
Step 2: Purchase or deposit SHIB tokens.
Step 3: Click the Wallet option on the top menu bar, then click the Earn button. Look for the Shiba Inu token in the Action column, click Earn, and then choose Locked.
- Press the Subscribe button.
- Enter the duration you want to lock your SHIB and the amount.
- Accept the Binance Simple Earn Service Agreement and confirm the transaction.
When the staking period ends, the number of staked coins will be returned to your wallet, along with the interest earned.
Related Article: How to Open a Binance Account
Risks of Staking Shiba Inu
When staking Shiba Inu tokens, it is essential to consider the associated risks and considerations. Some of the risks that may arise include:
- Smart contract risk– Staking platforms managed by smart contracts may be vulnerable to bugs, leading to loss of funds and other issues.
- Price volatility– The value of the SHIB tokens you stake may fluctuate based on the market conditions, affecting your entire investment value and potential rewards.
- Lock-up periods and penalties– Some staking platforms state the period in which you are supposed to lock your SHIB tokens, which may limit your ability to access your funds or react in case of a rapid market change.
Staking Shiba Inu tokens is an attractive option for you as an investor, as it provides a way to earn passive income while supporting the ecosystem’s growth. To maximize your earnings, you need to choose the best staking platforms.
In the future, staking the Shiba Inu tokens seems to be a promising endeavor with profitable opportunities. This may be possible with the project’s expanding offerings and potential partnerships. Staking has the potential to produce rewards but also carries risks. You must do your own research, which can help you make informed decisions on the best approach for staking.