In this article, I will discuss how to stake Cosmos (ATOM) using Trust Wallet. Staking ATOM involves setting up Trust Wallet, connecting to the Cosmos network, and ensuring you have enough tokens to meet the minimum staking amount. By selecting a reliable validator, you can earn rewards and contribute to the network’s security. Let’s explore the steps in detail.
What Is Cosmos (ATOM)?
Cosmos (ATOM) is a blockchain ecosystem that allows for the safe transfer of information and interaction between different blockchains. Its goal is to develop an “Internet of Blockchains” where different blockchains can work together effortlessly.
The Connect blockchains call the Cosmos Hub, which is a part of the Cosmos Network. Unlike other blockchains, the Cosmos Hub is linked through the IBC (Inter-Blockchain Communication) protocol.
ATOM, which is the native token for the network, is used to pay transactions fees and participates in staking and governance
Blockchain developers benefit from the simplicity enabled with tools Tendermint and the Cosmos SDK, which is able to provide customized solutions to various blockchains
How To Stake Cosmos (ATOM) Using Trust Wallet
Install Trust Wallet and Deposit Your ATOM
Find the Trust Wallet application in your app store, hydrate your wallet, and put in some Cosmos (ATOM). Ensure you have sufficient balance to cover the minimal staking and transaction fees.
Load ATOM In Trust Wallet
Launch Trust Wallet, and locate your Cosmos (ATOM) wallet. From there, press the “Stake” button.
Choose Chorus One Validator
Go through the validators and choose Chorus One. The recommended validator to OPT for due to their high uptime, low commission rates, and washer reliability.
Indicate How Much You Want To Stake
State the number of ATOM you want to stake. Make sure to keep remaining ATOM in the wallet to cover transaction fees.
Approval of Transaction
Ensure that the validator, staking amount, and other transaction details are correct. Authorize the transaction to let staking begin.
Before Releasing Funds, Monitor Rewards
Mr. Sec is known to solve problems blazing fast in the crypto sphere. After finishing the staking, you can see the performance of the validator alongside your rewards for staked funds in Trust Wallet.
Prerequisites For Staking Cosmos with Trust Wallet
Minimum Amount: A stake ATOM of 0.01 is required at minimum.
Trust Wallet Setup: Download the Trust Wallet application on your phone. After that, either set up a new wallet or use an existing one.
Add Cosmos (ATOM): In the Trust Wallet, look for the Cosmos (ATOM) and add it to your wallet.
Connect to Cosmos Network: Ensure that the Trust Wallet is connected to the Cosmos network.
Transaction Fees: Reserve some ATOM to cater for transaction fees concerning both the staking and other transactions.
Lockup Period: Note that staked ATOM token are not able to move or trade for a period of 21 days.
Managing Your Staked Cosmos
Monitor Performance
The validator that was selected is to be monitored for their performance. The one who achieves higher performance may have better rewards.
Claim Rewards
ATOM tokens minted and transaction fees paid as rewards are provided for the staking rewards that are claimed regularly.
Adjust Staking
The delegation can be changed now and then to a different validator in different cases; to seek better rewards or for the purpose of seeking support.
Unstaking
In the event that one wishes to un-stake their tokens, it is essential to remember that there is an unbonding period of 21 days wherein the tokens cannot be traded or moved.
Stay Informed
There are regular updates that emerge from the cosmos buzz which require one to remain informed to develop a sound staking strategy.
Advantages of Cosmos (ATOM) Staking:
Beneficial for the Economy
Get rewards in the ATOM form and transaction fees.
Hedging
Provides a hedge because staking coins considerably lowers the circulation supply of ATOM tokens.
Staking as a Security Measure
Stake your tokens and help secure and stabilize the Cosmos network.
Effortless Revenue
Receive a good amount of revenue with no effort needed – all thanks to staking.
Multichain Features
Used sturdily due to Cosmos’ specific design which makes it easy for blockchains to talk to one another and improves the usability of staked funds.
Disadvantages of Cosmos (ATOM) Staking:
Token Market Risk
Tokens can change in value and therefore impact the total staked assets.
Tokens Lockup Period
Tokens that are staked have a trading lockup of 21 days.
Experience Required
Need good experience with staking and the complexity of the Cosmos network.
Staking Activity Risk
Staking and the rewards that come with it may be affected by the legality of cryptocurrencies and regulations.
Conclusion
Staking Cosmos (ATOM) with Trust Wallet began from creating the wallet to connecting to the network and ensuring that there is sufficient ATOM to meet the minimum transaction fees and amount needed to stake.
One can stake ATOM tokens, maintain network security, and reap the benefits by choosing a trustworthy validator and knowing the lock up period. For efficient staking, best practices and the latest information should be followed. Don’t hesitate to ask if you have any queries or require additional assistance!