Staking Cosmos (ATOM)
Staking Cosmos (ATOM) is a process that allows you to earn ATOM by participating in the network's consensus mechanism. This guide will take you through the steps needed to stake your ATOM using Gem Wallet, ensuring you can maximize your returns securely and efficiently.
- Your Cosmos (ATOM) will be locked when you stake them.
- It will take 21 days to completely unstake.
- The minimum staking amount is set by the validators you chosen.
- Always have some extra amount of ATOM that will be needed for transaction fees.
Always check that you are using the latest version of the app for optimal performance and security.
How to Stake Cosmos on Gem Wallet
Step 1 - Fund Your Cosmos Wallet
Before you can start staking, you need to ensure that your Cosmos wallet is funded with ATOM tokens. The easiest way to get Cosmos is to buy it directly with Gem Wallet. Tap on Buy and then select the amount of ATOM that you want to purchase.
Alternatively, you can buy ATOM tokens from various cryptocurrency exchanges such as Binance, Coinbase, or Kraken. Make sure you have a verified account on one of these platforms to purchase the tokens. Once you have purchased ATOM, transfer the tokens to your Gem Wallet.
Make sure that you copy the Cosmos wallet address correctly when sending ATOM from another wallet to avoid any loss of funds.
Step 2 - Navigate to the Stake Screen
Open your Cosmos Wallet and navigate to the Stake screen by tapping on Stake. Now on the Stake screen, you will see some details about the APR and the Lock Time when you stake your Cosmos tokens. Tap on Stake to proceed.
Step 3 - Choose Validator
Staking involves delegating your tokens to a validator who participates in the network’s consensus. Gem Wallet provides a list of validators you can delegate your ATOM to. Review the list carefully.
Look for validators with high uptime, low commission rates, and a good reputation in the community. You can find more detailed information about Cosmos validators here.
Step 4 - Input Stake Amount
After selecting a validator, you need to decide how much ATOM you want to stake. Make sure to leave a small amount of ATOM in your wallet to cover transaction fees. Tap on Continue.
Some validators may have a minimum staking requirement. Ensure your stake meets these criteria to avoid any issues.
Step 5 - Confirm the Stake Transaction
Double-check all details of your staking transaction, including the validator and the amount of ATOM you are staking. Once you are satisfied with the details, Confirm the transaction. The transaction will now be submitted to the Cosmos Network.
The transaction will just take a few seconds to be confirmed on the Cosmos Network. Congratulations, you have successfully staked Cosmos with Gem Wallet.
Cosmos Staking Rewards
By staking Cosmos (ATOM) you can earn at least 13.94% in Cosmos rewards (as of writing). You get rewards immediately but you would have to manually claim it. This is not a fixed rate since the rewards can be affected by the validator you have chosen.
Staking Cosmos (ATOM) on Gem Wallet will reward you with ATOM tokens.
Unstaking Your ATOM
Your Cosmos (ATOM) are locked until you unstake them. Unstaking will take 21 days before you can get your Cosmos (ATOM) back. To unstake your ATOM, simply tap on the Stake details. Then under Manage, tap on Unstake. Make sure to leave a small amount of ATOM in your wallet to cover transaction fees. Indicate the amount you want to Unstake and confirm it.
Is Staking Cosmos on Gem Wallet Secure?
Yes, Gem Wallet is a secure and open-source wallet for staking Cosmos. Here are some reasons why you need to stake your ATOM with Gem Wallet:
- Transparency: Open-source wallets have publicly available code that can be reviewed and audited by anyone.
- Community Trust and Collaboration: Being open-source fosters a collaborative environment where developers and security experts continuously improve the wallet.
- No Hidden Backdoors: Open-source wallets are less likely to have hidden backdoors or malicious code, as the open nature of the code allows for thorough scrutiny by the community, minimizing the risk of unauthorized access.
Staking Cosmos (ATOM) using Gem Wallet is a great way to earn passive income while supporting the network. By following these steps and tips, you can ensure a smooth and secure staking experience.
Learn more about Cosmos Staking.