You must have heard a lot about staking and how to use PoS algorithms to generate crypto profit. But what is cold staking and how different is it from the regular staking everybody got used to? This article is a concise guide to cold staking and contains a good deal of information about the best cold staking coins to invest in this year. If you’ve already tried online staking, try cold staking to get additional rewards and secure your funds. So without further ado, let’s dive into it.
Cold staking is a type of staking that differs from regular online or “warm” one by one major thing – it’s considered much safer. Why? Let us explain. As opposed to regular staking, cold staking involves using offline wallets. Cold stakers usually use hardware wallets and their rewards depend on several factors. For example, you won’t win any rewards if you withdraw your assets before the end of the staking period. So with cold staking, you neither need to generate blocks nor should you confirm any transactions. You can earn passive income by freezing your coins, and get a share from the cold staking contract that distributes the win among the investors depending on their holdings.
Even though cold staking is not as popular as online staking yet, and you won’t find it on every crypto platform, it’s worth trying because your funds will be stored in a much more secure way. Your coins get frozen in an offline wallet which protects them from online cyberattacks and scams. It doesn’t mean that online staking is not safe at all – most reputable platforms work hard to ensure secure transactions, but they still are subject to being attacked by cybercriminals.
What’s more, cold staking is much more eco-friendly since it’s more energy efficient – storing your coins in an offline wallet consumes much less energy than regular online staking. I’m not even going to compare it with mining which probably requires two times more energy than both these staking methods together.
These days, multiple platforms like Binance, MyCointainer, and Callisto offer cold staking. However, be prepared that you will not find this kind of staking on your favorite platform (if you already have one), since most crypto platforms focus on regular online staking. So how do you cold stake crypto and what is cold staking cryptocurrency? Generally speaking, most platforms offering cold staking follow a similar process, but each of them has nuances, so it’s better to read specific instructions in the knowledge base on their website.
If you decided to try cold staking, there’s one very important thing you will need to buy – a hardware wallet. There are numerous hardware storage units for cold wallet staking, so you can get lost even before you start staking itself. Ledger and Trezor are by far the most well-known brands you should consider first of all. Below are the short descriptions of the two best models available in 2022.
Whenever I heard from my friends or teammates that they bought a hardware wallet, that was a Ledger. It is the most trusted brand of crypto wallets from France used by both big companies and individual investors all around the world. Nano X is the company’s flagship hardware that belongs to one of the top cold wallets on the crypto market these days. Its biggest disadvantage is probably its price: while you can get a Ledger Nano S model for about $80, expect Nano X to be around twice more than this. Perhaps it’s not the best option for beginners who want to take a look at whether cold staking works for them.
As for the setup process, it’s quite straightforward, but we can’t say it’s a no-brainer, especially for the newbies. But how about security? If hardware wallets are so safe compared to online wallets, how are they protected? Ledger Nano X has a set of 24 random words plus a pin you set while setting the wallet up. Even if somebody gets your device, they’ll need to find out either your 6-character pin or a phrase. This is where you’re taking responsibility for the security measures.
The storage capacity is over 5K of tokens or 100 different assets simultaneously. The wallet comes with a Ledger Live app to support you with the exchange and swapping capabilities. The exchange fees might not be the most appealing but still, it’s good to know you have a convenient and fast way to swap when it’s urgent. Due to Ledger’s popularity, beware of fake devices and phishing websites trying to sell them. Official stores are always the best.
Trezor from the Czech Republic is the most well-known competitor of Ledger. You can get either a Trezor One or the Model T. They are almost the same with several differences like the number of assets supported by the wallet. For example, you won’t be able to store Cardano, Ripple or Tezos on it. It won’t be extra to do research and decide on the coins you plan to invest in before you get a wallet to make sure it supports your favorite assets.
Compared to Trezor One, the Model T wallet has expandable storage which is another benefit of it giving you the possibility to store more coins. As for the cost, the Trezor devices are more expensive than the similar Ledger’s products, at $75 and $300 respectively.
Even though Ledger’s models slightly win in terms of functionality and prices, consider both brands and compare yourself to choose the best one for you. Once you decide on the hardware wallet and choose to earn profit not only by holding coins but also by cold staking, it’s time to choose a cold staking platform to delegate your assets to.
If you’re new to cold staking, it’s important that the process on the website is simple and straightforward. MyCointainer cold staking is safe and easy to follow. It breaks down to just a few steps. You delegate your coins to MyCointainer node using the Node ID address. You can keep your coins delegated for as long as you want without any lockup periods.
The beauty of cold staking with MyCointainer cold wallet is that you don’t need to freeze your assets. Your crypto stays in your cold wallet with zero risk of losing the money you staked. MyCointainer offers 21 crypto nodes for cold staking, including MATIC, WAVES, FSN, AVAX, with more nodes coming soon. The minimum amount to delegate differs depending on the coin. For example, 30 MATIC or 25 AVAX.
There’s a range of additional rewards you can earn by delegating coins to MyCoinainer nodes. With a certain amount of coins delegated, you can earn a bonus every month – 250 EUR. For CTSI, the amount needed is 500, and for MATIC – 1500. You can also get +50% reward fees back directly to your MyCointainer wallet and get a chance to win a lottery ticket for every delegation. To be honest, the list of possible bonuses one can win with MyCointainer cold staking reminds me of the first come, first served scenario when you have the best rewards at the rise of the platform before it becomes too popular to offer it all. Do you remember how Bitcoin started? Everyone was so skeptical while those ‘crazy’ investors who believed in it (or maybe even didn’t but still kept the coins) one day woke up filthy rich. Early birds catch their worms.
It’s definitely hard to predict which coins will be best for crypto-cold staking in the second half of 2022. The crypto has shown unprecedented plummets in prices, so we all should be very cautious while trying to assess which staking coins will go through it and will grow. However, here’s the list of 7 coins that have demonstrated growth in the past couple of years:
What is really important these days, with all the volatility on the crypto market, is to be able to stake your assets with no lockup period. That gives you more flexibility and the ability to save your money if there are drastic changes in the market.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…
Cosmos Developer Interchain Foundation sold 3000 ETH from its ICO today, totaling 21,600 ETH sold…
George Town, Grand Cayman, 22nd November 2024, Chainwire
Inflation Warning by Vanguard highlights risks during Trump’s term, citing tariffs and tighter labor markets…
Clanker token trading volume hit $59.8M on Nov 21, accounting for 14.75% of PumpFun. Fee…
Bitcoin Spot ETF inflows hit $1.005B on Nov 21, led by BlackRock’s $608M and Fidelity’s…
This website uses cookies.