Unleash the SHIB: the ultimate guide to staking shiba inu

Cryptocurrency staking is a popular way for investors to earn passive income while supporting the networks they believe in. Staking allows them to lock up a chosen cryptocurrency in a wallet and participate in the network’s proof-of-stake (PoS) consensus mechanism. By doing so, they help secure the network and validate transactions while also earning rewards for their contribution.

Shiba Inu (SHIB) is a decentralized cryptocurrency that captured the world’s attention as a “meme coin” and an alternative to dogecoin. 

Despite its playful origins, Shiba Inu has evolved into a robust ecosystem with a passionate community. One of the key features of this ecosystem is the ability to stake SHIB tokens, allowing users to potentially benefit from the passive income generated by this process.

This comprehensive guide delves deep into the world of shiba inu staking, examining its advantages and disadvantages, providing a detailed step-by-step guide to staking SHIB, and exploring the best platforms for this purpose.

How to stake SHIB?

The process of staking shiba inu on a staking platform is relatively straightforward, but it is essential to follow each step carefully. Here is a detailed, step-by-step guide on how to stake your SHIB tokens.

Step 1: Acquire SHIB tokens

Purchase SHIB tokens through a reputable cryptocurrency exchange or swap platform, such as Uniswap, Binance, or Coinbase. Ensure you have enough tokens to meet the minimum staking requirements of your chosen platform.

Step 2: Choose a staking platform

Research and select a suitable staking platform based on factors such as security, reputation, fees, and APY. Section 4 of this guide provides an in-depth analysis of the best platforms for staking SHIB tokens.

Step 3: Set up a compatible wallet 

Create a wallet that supports SHIB tokens and is compatible with your chosen staking platform. Popular wallet options include MetaMask, Trust Wallet, and Ledger. Ensure that you securely store your wallet’s private key or recovery phrase.

Step 4: Transfer SHIB tokens to your wallet 

Move your SHIB tokens from the exchange or swap platform to your wallet. Double-check the wallet address before initiating the transfer to avoid any mistakes that could result in a loss of funds.

Step 5: Connect your wallet to the staking platform 

Follow the instructions provided by your chosen staking platform to connect your wallet. This process typically involves authorizing the platform to interact with your wallet and allowing it to stake your SHIB tokens.

Step 6: Stake your SHIB tokens 

Once your wallet is connected, stake your SHIB tokens by selecting the desired amount and following the platform’s staking procedure. Some platforms may require users to approve an additional transaction to confirm the staking action.

Step 7: Monitor your rewards 

Keep track of your staking rewards and claim them according to the platform’s guidelines. Some platforms distribute rewards automatically, while others require manual claiming. Be aware of any fees associated with claiming your rewards, such as Ethereum (ETH) gas fees on decentralized platforms.

What is Shiba Inu?

Launched by an anonimous developer Ryoshi in August 2020, shiba inu is an Ethereum-based, decentralized meme token featuring the Shiba Inu: a Japanese breed of hunting dog, as its mascot. The token rapidly evolved into a vibrant ecosystem comprising a decentralized exchange, ShibaSwap.

ShibaSwap, a large DeFi staking and rewards system and an NFT marketplace, was launched in July 2021. It has millions of strong and loyal community members globally, making SHIBA one of the world’s top 20 cryptocurrencies.

Shiba Inu was created with an initial total supply of 1 quadrillion tokens. Ryoshi locked half of the total supply in Uniswap for liquidity and sent the other half to Ethereum co-founder Vitalik Buterin. Buterin then donated 10% of the tokens received to charity and burnt the remaining 90%, leaving a current shiba inu supply of about 589 trillion tokens in circulation.

The SHIB are ERC-20 tokens and work by leveraging smart contracts. The Shiba Inu ecosystem comprises two more ERC-20 tokens: BONE and LEASH. BONE is the governance token used by the Shib Army to vote and participate in governance on their DAO. LEASH was a rebase token pegged to dogecoin’s price but was allowed to unleash its full potential.

The Shiba Inu ecosystem

• SHIB: The project’s foundational currency is tradeable and is used as a medium of exchange.
• LEASH: The second token in the ecosystem is to provide shiba inu staking rewards to those validating transactions. It is the most limited of the shiba inu tokens.
• BONE: Bone is the third token with a total supply of 250,000,000 tokens. It is a governance token that allows the SHIBArmy to vote on various proposals. 
• ShibaSwap: A DeFi platform for trading cryptocurrencies.
• Shiboshis: 10,000 Shiba Inu non-fungible tokens (NFTs) on the Ethereum blockchain are unique and collectible.
• Shibarium: Shiba Inu’s layer 2 blockchain aimed to increase transaction speed and lower fees compared to other blockchains. 

What is shiba inu staking?

Before you learn how to stake SHIB, let’s see what staking is. Staking is when you lock up your crypto to help secure blockchain, validate transactions, and earn rewards in return. It is only possible on blockchains based on a proof-of-stake (PoS) consensus mechanism. Staking supports node validators, which is a crucial part of the proof-of-stake protocols.

How does shiba inu staking work?

There are many ways to stake shiba inu, depending on your technical knowledge. Crypto exchanges may be the most convenient option for beginners. Various exchanges offer different interests depending on the amount staked and the staking period.  Payouts range from daily to weekly, monthly, and annually.

In general, staking on decentralized exchanges (DEX) is accessible to all users with crypto wallets. In contrast, centralized exchanges (CEX) are limited depending on certain jurisdictions.

Shiba tokens have a large and active community compared to many other tokens, making them available on many crypto exchanges globally. Binance and ByBit are among the largest centralized exchanges allowing buying and staking SHIBA, with their interest payouts varying daily, weekly and monthly. You can also stake SHIB on ShibaSwap, Shiba Inu’s own DEX.

Staking shiba inu on ShibaSwap DEX

On ShibaSwap, users earn “Woof returns” through shiba inu staking in a process called burying. Rewards are in xBONE, xSHIB, and xLEASH tokens proportional to the staked Shiba coins and are distributed weekly. Only 33% of staked rewards can be redeemed, with the remaining 67% locked for six months. 

To stake SHIB, connect your crypto wallets containing SHIB tokens to ShibaSwap, which supports wallets such as Metamask and Coinbase. Then buy SHIB from an exchange and transfer it to your wallets or buy the tokens on ShibaSwap by swapping them for ETH or other supported cryptos. Once a sufficient amount of SHIB is acquired, the tokens are staked under the Bury option on the platform.

Staking shiba inu on Binance

Binance is the world’s biggest and most popular centralized exchange. It offers both flexible and locked staking. With flexible staking, users withdraw staked SHIB tokens at any time, whereas in locked staking, withdrawal of locked SHIB tokens incurs a loss of interest.

To stake SHIB, users buy SHIB tokens on Binance by creating a retail investor account using a phone number and email address, completing a KYC, and setting up two-factor authentication to secure their account. Shiba inu is then purchased using crypto or fiat currencies like USD. 

The staking options are 60, 120 days and flexible savings. The Annual Percentage Rate (APR) varies from 0.005% on flexible savings to 0.3% on staking shiba inu for 120 days. These flexible and locked staking plans are highly in demand and are available on a first-come-first-serve basis.

Shiba inu staking through a pool

Pooled staking is another method of staking shiba inu meaning many participants pool their assets together and form a larger liquidity pool. This increased liquidity allows more transactions, including lending, to take place.

One of the biggest crypto exchanges that allow the pooling of shiba inu is Binance. However, it does not support the other Shiba Inu tokens, LEASH and BONE.

Shiba inu: How is it secured?

The Shiba Inu network is built on the Ethereum network. Ethereum switched from PoW to PoS consensus techniques in 2022. By staking SHIB, you support the security of this network. PoS achieves consensus using an algorithm that chooses a victorious node to win a block of transactions; these nodes are called stake pools.

Benefits of staking shiba inu

• Staking is a means to earn a passive income with regular payouts without indulging in risky trading. 
• Provision of liquidity to ShibaSwap. 
• The total value locked increases as more SHIB tokens are staked for a long, pushing the price of SHIB tokens upwards.
• It is possible to stake Shiba Inu on ShibaSwap without KYC compliance anonymously.
• Staking is environmentally safe compared to mining
• It is possible to compound interest for higher returns.
• The community is strengthened, and a route for distributing community airdrops is created.

Downsides of staking shiba inu

• Earning substantial rewards requires more extended lock periods and large amounts.
• Locked staking on centralized exchanges is limited to a particular quota, and you can miss out on the available slots. 
• The price of shiba inu is highly volatile, and drastic price drops may cause losses at the end of the staking period. 
• Redemption of locked Shiba tokens on centralized exchanges before maturity causes a loss of interest.
• Only 33% of Shiba on ShibaSwap is redeemable, and the rest is locked up for six months before possible withdrawal.
• The safety of your Shiba tokens is pegged on the exchange’s security.

The best platforms for Staking Shiba Inu

Here are the top platforms for SHIB staking.

ShibaSwap

ShibaSwap is a decentralized exchange (DEX) specifically designed for the Shiba Inu ecosystem, which allows users to stake their SHIB tokens to earn rewards. The platform emphasizes community engagement and offers additional earnings through liquidity provision.

• Advantages: Native decentralized exchange, attractive APY, strong community support, additional rewards through liquidity provision.
• Disadvantages: Smart contract risks, potential high gas fees, limited customer support.

Binance

Binance is a leading centralized exchange that offers SHIB staking with competitive APY. Users can choose from various staking options and benefit from the platform’s strong security measures.

• Advantages: Trusted centralized exchange, competitive APY, various staking options, strong security measures.
• Disadvantages: Centralization, potential withdrawal fees, regional restrictions.

ByBit

Bybit is a cryptocurrency trading platform that allows users to stake SHIB along with a range of other cryptocurrencies to an annualized interest through its Flexible Staking platform. The platform allows users to start earning interest in just two days after staking their assets, and the interest is deposited daily into the users’ ByFi accounts.

• Advantages: Stable and guaranteed interest, flexible staking options, immediate earnings from day 2, daily interest deposits.
• Disadvantages: Limited annualized interest rate, lack of extensive customer support, potential withdrawal fees.

OKX

OKX is a comprehensive digital asset trading platform that offers an easy and low-risk way to grow your SHIB investment through its staking and savings pool services. In the flexible staking pool, users can put their idle SHIB tokens to earn interest, while the savings pool allows for a more passive income generation from their SHIB tokens. 

• Advantages: Flexible staking pools, passive income generation, strong security measures
• Disadvantages: Centralization, potential withdrawal fees, regional restrictions, limited customer support.

BitMart

BitMart is a centralized exchange with a user-friendly interface for staking SHIB tokens. The platform offers competitive APY and flexible staking durations, as well as additional features such as trading and referral bonuses.

• Advantages: User-friendly interface, competitive APY, flexible staking durations, additional features such as trading and referral bonuses.
• Disadvantages: Centralization, limited customer support, potential withdrawal fees.

Conclusion

Shiba is one of the top-ranking meme coins which has proven to be one of the best-performing cryptos. Staking is one of the best ways to earn interest on your crypto investment and establish a passive income stream with regular payouts. Shiba inu staking can be profitable if its value does not crush. Remember that crypto staking carries its own risks, so always do thorough research and proceed with caution.