What is staking?
In a Proof–of–Stake (PoS) blockchain, users can “stake“ their coins to gain a share in the Network’s’ rewards. These rewards usually come from a portion of the Network’s’ transaction fees and new coins created with each new block. Through staking, users can earn interest on their holdings and help secure the Network. Staking is a more energy–efficient way to secure a blockchain network than the energy–intensive mining process used in a Proof–of–Work blockchain.
How can I stake?
Decentralised staking (which Speedy Staking offers through their validator services) requires you to use a wallet that can interact with the Network you want to stake on and tokens of the Network. It may need you to stake a minimum amount, and you must pay transaction fees to stake and unstake. It is crucial never to stake all your tokens because then you won’t have enough to unstake later. Networks usually require a certain amount of time to pass before your tokens are unstaked; this can vary from 14 hours on some to 28 days on others. It’s essential to remember this before you start staking and unstaking. Rewards are usually not earned during this unstaking period. We will always include this information in our Network specific 101s in our Knowledge Base.
Is it safe?
Unlike on CEXs (Central Exchanges) and some other platforms, Speedy Staking only offers decentralised validator services. We will never take custody or control over your tokens when you stake on our nodes, and you will always decide what and when to stake and unstake. We believe it’s fundamental that users have self-custody over their tokens, as these tokens belong to them and nobody else. And we must remember the famous crypto saying, “Not Your Keys, Not Your Crypto”.
Some networks will have slashing active, where validators (and, with them, stakers) can have their stake (or tokens) slashed if they don’t behave properly, and you can consequently lose tokens. Insurance for validators against this is possible and common for networks where slashing is active. Speedy Staking isn’t currently active as a validator on networks where slashing is active.
The last aspect has to do with self-custody. Because of the decentralised nature of self-custody, there is usually no way to retrieve access to a wallet other than the private key (or seedphrase). Should you lose this, you will have NO access to your tokens. The same goes for when someone else obtains access to your private key; they will have FULL control over your wallet. A private key cannot be changed, so you must create a new wallet once exposed. It is essential to keep your private key safely stored away, not to share it with others and know what transactions you sign for.
Why should I stake with Speedy Staking?
Speedy Staking consists of a highly skilled and educated team with years of experience in blockchain and DevOps. Our validator nodes are run with over-spec hardware using 100% renewable energy. Additionally, we also help support Gold Standard projects. We provide 24/7 support in our Telegram group and support the staking community with helpful information and guides. We actively participate in blockchain events and help support small projects by partnering and sponsoring.