How to Earn Bitcoin With the Xverse Wallet

When we explore DeFi protocols, we always look to make a profit in stablecoins. Or maybe in a solid token. However, there is a much better option: Have BTC rewards.

In this article, you will discover how you can earn BTC rewards using a wallet app. We are talking about the Xverse Wallet. Before we dive into the specifics of earning Bitcoin through staking STX tokens, it’s essential to grasp the fundamentals.

What is Stacks?

Stacks is an open-source blockchain project that connects to the Bitcoin network, enabling smart contracts and decentralized applications (dApps) to be built on top of the Bitcoin blockchain.

Stacking, in the context of Stacks, refers to the process of locking your STX tokens as collateral to support the network’s consensus mechanism. Now, Let’s get into the step-by-step guide.

Open Wallet and Buy STX

To get started with staking STX tokens, you’ll need to take a few preliminary steps:

  • Firstly, acquire some STX tokens through a reputable cryptocurrency exchange. You can buy it in Binance, Coinbase, or MEXC. Look at the options here.
  • Once you have obtained the required tokens, set up a Stacks wallet. In this case, we will use the Xverse Wallet. Ensure that you securely store your wallet credentials, as losing them may result in permanently losing your funds.

Choosing a Stacking Method

When it comes to staking STX tokens, you have two primary options:

  • Solo stacking: This option involves running your own full node, which requires technical expertise and a significant amount of STX tokens.
  • Joining a pool: This option allows you to stake your STX tokens collectively with other participants, increasing your chances of earning rewards. Pools such as Hiro PBC and OKCoin offer reliable stacking services.

In this case, we’ll use an internal feature of the Xverse Wallet. Here is a picture of the app:

earn btc with xverse wallet

Source: Stacks Forum

Nowadays, you need to at least deposit 100 STX to use this feature and you’ll earn 10% in BTC. The exact amount of Bitcoin earned depends on various factors, such as the number of STX tokens staked, the duration of staking, and the overall network performance. Staking rewards are typically distributed periodically, allowing you to accumulate Bitcoin over time.

In this case, the Stack’s stake mechanism works in cycles. These cycles last about 15 days. For example, if you invest 1000 STX, after the stake cycle you will have the equivalent of 100 STX in BTC.

Monitoring Your Stacked STX Tokens

After initiating the stacking process, it’s important to keep track of your staked STX tokens. Most staking platforms provide intuitive dashboards or interfaces where you can monitor your earnings, view transaction history, and track the performance of your staking activities. You will find this info in the Dashboard of the Xverse Wallet.

Note: Stay informed about any updates or changes in the stacking protocol to ensure your staking setup remains secure and up to date.

Conclusion

Staking STX tokens to earn Bitcoin presents an exciting opportunity for crypto enthusiasts to grow their digital asset holdings. By understanding the basics of Stacks and following the steps outlined in this guide, you can confidently embark on your staking journey and potentially benefit from passive Bitcoin earnings while supporting the Stacks network.

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