Staking is one of the most popular crypto activities on Proof-of-Stake networks. So, staking is a less expensive way to secure a network as it involves committing your tokens to validate transactions.
Besides securing a network, staking is a good way to earn passive income. Especially when you stake tokens like Solana, which is a safe and profitable venture. And our last article explains in detail 4 things you should know before staking your SOL. Be sure to check it out. This article will look at how to stake Solana on Phantom.
Note: Phantom is both an app and a Google Chrome toolbar extension. You’ll find it easy to use as it involves no technical knowledge. The Phantom wallet allows any SOL holder to secure the network via staking and earn rewards.
What Does it Mean to Stake Your SOL?
Staking is the process by which a SOL token holder allocates some or all of their tokens to a selected validator. It helps to boost the voting power of that validator. Delegating your tokens means giving them to a validator to increase their stake weight. However, this does not mean that you have transferred the ownership or control of your tokens to the validator. You always have control over your delegated tokens.
Validators are in charge of processing incoming transactions on Solana’s network. They are also responsible for adding new blocks to the blockchain and voting. Then, validators, with more stake, are selected to write new transactions to the ledger. That means delegators will get more rewards for contributing their tokens for the smooth running of the system.
How to Stake SOL on Phantom
The process is pretty simple. However, you have to own SOL before you begin. You can purchase SOL tokens on exchanges such as Binance. So, here are the steps:
- Create a Phantom Wallet and send some SOL from an exchange to the wallet.
- Add Phantom as one of your Google extensions on the top right side of the page. You can also download the extension on the Phantom page.
- Select “Create New Wallet” to create a new wallet.
Here, you’ll be asked to save your secret recovery phrase. We advise that you save it in a secure place because you’ll need it to access your account from a new device etc. You’ll also lose access to your funds if you misplace this phrase. Most importantly, do not pass it to a third party.
- Create a login password for your wallet. Then, click on “Save” to proceed.
- After this, you’ll see the screen below showing you that you’ve created a new wallet.
- The next step is to transfer your SOL into your Phantom wallet. Select the “Receive” icon to get your receiving address.
- Select the “Send from wallet / Exchange” icon to find your wallet address. You can also deposit SOL directly from FTX.
You’ll get a QR code and a button to copy your wallet address. You can also use this address to send your SOL to your Phantom wallet. Once the funds get to your wallet, then you can start staking.
Return to the home page of your wallet and select Solana.
Then, click on”Start earning SOL”.
Next, use the search bar to find “P2P Validator”.
After that, dial in the amount you wish to stake and click on the “Stake “icon “Stake” to proceed.
Note: Phantom will set up a separate staking account for your stake. This will then be delegated to the P2P Validator.
Next, the screen below shows that your delegation has been successfully sent out.
In conclusion, staking Solana on Phantom remains a good passive income option. But we advise that you carefully select your validator because it will ultimately decide your earnings.
As of this writing, SOL trades at $32.45. It has a 24-hour trading volume of $1,159,148,737.
⬆️For more cryptocurrency news, check out the Altcoin Buzz YouTube channel.
⬆️ ALTCOIN BUZZ – BINANCE – GET UP TO $600* ON SIGN UP
Sign up using the links below on Binance Exchange and get the following benefits
- Earn a $100 Spot Trading Bonus
- Get a 20% trading fee discount for life!
- Get $200 worth of 2 months of Altcoin Buzz Access PRO Membership (50+ Trading Signals, Hidden Gems) and unlock up to $500 more in prizes
Click on the following link (as per your location) to avail the benefits. Binance Global, Binance US.
For more details visit*: Binance Sign Up Offer Page. *Terms & Conditions Apply
Disclosure: Altcoin Buzz may receive a commission, at no extra cost to you, if you click through our links and make a purchase from one of our partners