Staking Tezos on Ledger Live — Passive income on XTZ
Ledger offers a new way to securely generate passive income on Tezos coin.
The current reward for staking Tezos is around 6% per year.*
Ledger Inc. now offers the possibility to stake your XTZ directly in its’s Desktop/Mobile Application “Ledger Live”.
This means you can securely store your XTZ coins on the hardware wallet and participate in the staking process of the Tezos protocol.
Direct Info Link: https://www.ledger.com/staking-tezos/
About Tezos
Tezos is a new advanced and decentralized cryptocurrency. The network is based on a community-driven governance mechanism. This means that every HODLER of Tezos can influence the blockchain functionalities. For example holder of Tezos can agree/vote on features and upgrades of the underlying blockchain by participating in the voting mechanism. Compared to other Blockchains like Bitcoin, Litecoin, Ethereum, EOS etc. the blockchain can amend without forking the chain.
About the staking feature
Tezos uses a proof-of-stake protocol. This mechanism secures the network, like the known mining with Bitcoin.
The difference between mining and baking is that your power does depend on the amount of Tez you hold not on the hardware power you have.
Like with mining you will be rewarded to participate in the proof-of stake mechanism with Tezos tokens depending on the amount you bake or delegate.
How can you generate passive income on Tezos?
For participating in the validation of the Tezos blockchain you can earn block rewards in XTZ coins.
The current reward for staking Tezos is around 6% per year.*
There are 2 main possibilities to participate:
Baking on your own:
You can bake on your own by setting up a node and having at least 8,000.00 Tez.
Preferred: Baking by delegating your baking rights:
The securest and easiest way to take part in the baking process is to delegate your baking rights.
Ledger Live now makes it possible to do that in a very simple way.
For more info visit: https://www.ledger.com/staking-tezos/
Why is delegating more secure?
Delegating is more secure, as it makes it possible to keep your Tez on your hardware wallet, not connected to the internet and participate in the baking process.
As described for delegation there is no need to send your Tez somewhere only your delegation rights.
Which hardware wallets are supported?
Ledger Live and the Tezos staking/delegating feature are available for:
NEW Ledger Nano X:
→ Link: https://shop.ledger.com/pages/ledger-nano-x
Ledger Nano S:
→ Link: https://shop.ledger.com/products/ledger-nano-s
Where can you find a tutorial on delegating Tezos?
For a tutorial on baking & delegating Tezos. Also a list of trusted delegation services is mentioned.
Video Tutorial on delegating via Ledger Live:
About delegation services & a list of trusted ones:
Happy Baking!
Kind regards
Tezard
— You shall not parse! —
Disclaimer: Please note that this article is only a technical review. There is no investment advice given here. Please note that investing in cryptocurrencies can involve high risks. The term “passive income” means that you will be rewarded with Tez by participating in the network. If you can earn money depends on the current market prices of the Tezos coin, which can not be foreseen.
*Staking rewards can vary, as the network or the participating amount of staker can vary. The menioned reward level is a roughly estimation on current network stats. Figures taken from https://www.stakingrewards.com/asset/tezos