Another Good Way to Stake Your DOT

Staking is one good way to put your crypto to use in a bear market. Staking simply refers to locking up your crypto for a period of time in a protocol to help the operations of that protocol.

Also, staking is a common feature for proof-of-stake networks such as Polkadot and Ethereum. New users can find it challenging to stake their cryptocurrencies. But staking isn’t that complex, especially with a token such as Polkadot’s DOT. In this article, we’ll give you a good way to do it.

How to Stake DOT

DOT is Polkadot’s native token and It is first a governance token. And by that, we mean holders have a say in what goes on in the network. Secondly, you can stake DOT to earn rewards. 

So, there are different ways to go about staking your DOT. But it depends on your level of expertise. Now, let’s look at an easier pathway.

  • Using Nomination Pools

This is one of the easiest ways to support the system. You can stake natively with as little as one DOT. Nomination pools are a new feature. They allow users to pool their DOT tokens together on-chain to nominate validators and get rewards. This in turn improves the system’s scalability. And keeps the network secure and decentralized by incentivizing native staking.

It’s important to say that staking via the nomination pool is perfect if you have less DOT. And you are seeking a more passive-staking experience. The easiest way to join nomination pools is via the Polkadot Staking Dashboard. However, experienced users can also participate via Polkadot-JS apps. Joining a nomination pool via the Staking Dashboard is as simple as:

  1. Connecting your account to the dashboard.
  2. Head to the “Pools” tab and click the “Join” button. You can click the “All Pools” button. This will allow you to browse all available nomination pools.

  • The next step is to find the pool you would like to join and click the “Join” button next to it.

Enter the amount you want to bond. The page presents you with the option to activate a permissionless reward claim. This means anyone can claim your rewards on your behalf. Once ready, click “Submit.“

After signing the extrinsic, the “Pools” page will show up. It will display information about the nomination pool you joined.

Keep in mind that you can only participate in a pool with a transferable balance. And the amount you participate in is taken from your account to the nomination pool.

You can also stake in ecosystem wallets such as Nova.

Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.

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