The cryptocurrency ecosystem is fast developing, and $TON Coin has become a promising player in the digital assets niche. As blockchain technology continues to take over the world, users are constantly looking for different ways to benefit from cryptocurrency. This is where staking of Ton coins comes in, it is one of the surest ways cryptocurrency enthusiasts can earn passive income while contributing to the smooth running and effectiveness of the TON network.
This article aims to provide a detailed run-down of the $TON staking process, crafted in a way every beginner can understand. It carries the fundamentals of understanding $TON Coins and the basics of staking. You will find the steps to set up a crypto wallet, and a detailed guide of the staking process. After reading this article, users should be able to start their crypto journey with the TON ecosystem and enjoy the benefits of cryptocurrency staking.
Staking Basics
What is a $TON coin?
$TON is the native token of The Open Network (TON), an extremely fast and secure blockchain built to handle millions of transactions per second. TON was built with the vision of hosting a good number of applications, functioning like a vast distributed supercomputer. As the primary asset within the TON ecosystem, $TON coin is used for paying transaction fees, staking, and as a medium of exchange in various TON related applications.
The TON blockchain initially used a Proof-of-Work system but later changed to a Proof-of-Stake system due to imitation in necessary resources. Currently, TON operates on a modified version of PoS called Catchain Consensus, which consists of the Catchain Protocol and Block Consensus Protocol.
How does staking work?
Staking is the process involving the participation in transaction validation on a blockchain network like the TON blockchain . Unlike mining, which involves the use of hardware to solve complex algorithms, staking allows the users to put in their contribution to the network"s security by holding an amount of coins in a compatible wallet.
In the TON ecosystem, staking is made possible through TON Liquid Staking, a system that enables $TON holders to contribute to the blockchain’s validation process, nonobservant of their stake size. Stakers are also known as Nominators, have their resources pooled to support the validation process and contribute to the protocol’s security.
The staking process in TON are as follows:
- Users purchase $TON coins through crypto exchanges examples include Binance, Bybit etc.
- They choose a compatible $TON coin wallet to store their tokens.
- Stakers join a staking pool, which combines resources from multiple stakers.
- Once the deposit is confirmed, stakers automatically take part in transaction validation.
- Rewards will be distributed to every individual according to their contribution to the stake pool.
Advantages of staking $TON coins
Staking of $TON coins has numerous advantages, few of which are listed below:
- Amount of Stake: When staking your $TON coins, users are not limited to any amount, stake as little or much as you want. Users can stake with as many different wallets as they wish.
- Convenience: Various Platforms used for staking of $TON coins have a user-friendly interface making it easy for users to make use of.
- Lucidity: Staking is one of the simplest ways to earn digital assets. It does not require a user’s constant attention and it is not time consuming.
- Rewards: One of the primary reasons for staking is to earn rewards, staking of your $TON coins comes with amazing income rewards.
- Security: Users who take part in staking contribute largely to the security and stability of the TON blockchain.
Stakers are significant members in the TON ecosystem, they contribute to the development of the network. Note that staking fees and lock-up periods are applicable in this process.
Choose a suitable wallet
To begin staking your $TON, users will need to choose a suitable and convenient wallet. There are a wide range of compatible wallets for this purpose, each with unique features and functions. Some of which include:
- OpenMask
- Tonkeeper
- MyTonWallet
- Tonhub
- @wallet
Factors to put into consideration when choosing a wallet includes security, ease of use, and features necessary for staking.
Step-by-Step Staking Process
Selecting a staking platform
To start your staking journey you must choose a good platform, for staking your $TON, you can choose DappRadar which has made it marks as one of the best for cryptocurrency staking, it offers detailed analytics, together with a user-friendly interface. However, users can decide to try out other platforms such as tonstake.com, which offers accessible pooled staking options.
Connecting your wallet
Once you have concluded on your choice of platform, the next thing to do is to connect a compatible wallet (this is for users who have created their wallets already, if you do not have a wallet, kindly read our article on how to create a $TON wallet). Majority of the platforms support wallets like Trust Wallet and Metamask these wallets are very accessible. For TON-specific wallets, options include but are not limited to Tonhub,MyTonWallet and Tonkeeper. Connecting a wallet is a very easy and seamless process, all a user has to do is to follow the on-screen instructions on the platform, ensure you have deposited some $TON coins before beginning the process.
Choose stake amount and duration
After you have successfully connected your wallet, you need to decide how much $TON coin you would like to stake. Some platforms give the liberty of staking with as low as 0.1 $TON like Tonstake.com. When selecting the amount, Necessary factors to put into consideration while staking include staking period, risk level and Annual Percentage Yield. Recent data shows that the estimated reward rate for $TON coin staking is 2.51% (this is subject to change).
Initiate the staking process
Typical steps to follow when initiating a staking process includes the following:
- Head to the staking section of a chosen reputable platform.
- Select the $TON coin as the token to stake.
- Put in your desired staking amount.
- Go through the staking terms and carefully review them, like the reward rate and lock up time. .
- Quickly review your selections like staking amount and ensure to confirm transactions to stake your tokens.
Certain staking platforms may require a verification process, which could be sending a small amount of $TON to a wallet address and a given memo for the account verification. If your choice of platform requires such verification, carefully follow the instructions provided to verify your account.
Conclusion
Spreading your tentacles into the world of $TON coin staking brings about so many thrilling possibilities for digital assets enthusiasts. This article is written to provide a step by step guide to steer the process on your own, the aim is to provide an understanding of the fundamentals of setting up a wallet and initiating a staking process. After reading and understanding this article crypto newbies should be able to navigate through the process of staking $TON coins and potentially gaining rewards from this process.
Everyday, the cryptocurrency space continues to develop and evolve, participating in the staking of the $TON coin offers an avenue to be part of the great digital revolution taking place. Staking is not just about earning passive income as rewards, it’s also about contributing significantly to the security and growth of the TON network ecosystem. So, whether you’re a beginner in the space or seeking to build your portfolio, $TON coin staking is one of the best avenues to explore. Don’t forget, for every investment plan, users must do their own research, understand the risks involved and be ready to accept the outcome of events. I would always advise users to stake what they can afford to lose, it doesn’t necessarily mean you will lose but it is just a good way to be on a safe side.