Stake Your Ethereum From the Safety of a Ledger Wallet and Earn 4.6%
Hey Peeps!
With crypto exchanges failing and hot wallets being hacked almost everyday, many crypto users are nervous about security.
This is where the Ledger hardware wallets come in.
I just realized the beginning of this post sounds like an advertisement....HOWEVER I hope by the end I can convince you that I am only trying to share information that I feel to be important.
The beauty of a hardware wallet, like Ledger, is hard to see until you have experienced a hack or loss of your crypto/assets.
Until you have experienced a hack or loss of crypto, you will probably think a hardware wallet is a luxury.
I am here to tell you, if you are serious about cryptocurrency and keeping it safe, having a hardware wallet is an absolute necessity!
I learned my lesson the hard way after Voyager collapsed and when I had my MetaMask wallet hacked, so I would like to save you the horrible experience of losing your crypto.
For years, users have been passively earning cryptocurrency by staking their crypto on hot wallets or with a cryptocurrency exchange.
These were always the easiest options for staking, but there is an inherent risk of losing your staked crypto via a hack or simply the exchange going out of business.
Now, the easiest and safest way to stake your Ethereum (ETH) is by purchasing a Ledger hardware wallet, accessing the Ledger Live application, and then staking your ETH with Lido.
By staking your Ethereum with Lido, not only do you earn a competitive interest rate of 4.6%, you also are staking your ETH from the absolute safety of your Ledger wallet.
There is absolutely zero risk of your ETH being hacked, like a hot wallet, nor could it be simply lost forever by Ledger, the company, going out of business.
When staking with Lido, users receive stETH tokens which are issued 1:1 to their initial stake of ETH.
With Lido, there is no lock-up and you can unstake your ETH whenever you please.
Simply having the option to unstake your ETH is already a step above almost every other wallet and exchange, as ETH is normally locked up until the highly-anticipated Shanghai upgrade (which was recently pushed back to April).
This is all possible because of Lido's Liquid Staking feature, which allows "users to get staking rewards without locking tokens or maintaining staking infrastructure".
The staking rewards are also updated daily and in real-time, so you will never have to wait on your rewards to hit your account.
Despite it being the most secure way to stake your ETH, please be aware that there are risks involved by using Lido; which include:
Smart Contract - Lido could contain a smart contract vulnerability that could be exploited.
Technical - The Ethereum Beacon chain (the original Proof-of-Stake blockchain) could have been developed with errors and possibly exploited.
Adoption - If the Beacon chain fails to reach required levels of adoption there could be significant fluctuations in the value of ETH and stETH.
Slashing - If Beacon chain validators fail, all staked funds would be at risk. Lido stakes across multiple validators to minimize this risk.
Price - The exchange price of stETH could potentially lose value due to "withdrawal restrictions on Lido, making arbitrage and risk-free market-making impossible".
I have been meaning to post this for some time now, so I am happy to finally post this and get this out to the readers.
Hopefully, I was able to convince some of you get your Ethereum (ETH) off of any hot wallets or exchanges ASAP, and secure them on a Ledger wallet to earn staking rewards.
Even if you do not care about staking your ETH, please consider moving your crypto to a hardware wallet to keep it as safe as possible.
If you are interested in purchasing a Ledger wallet, please consider using my referral link so we can both get $10 worth of Bitcoin:
https://shop.ledger.com/?referral_code=G3CNK58K10MTD
What are your thoughts on this?
Have you purchased a Ledger hardware wallet yet?
If so, which one do you have and how are you enjoying it?
Are you currently staking with your Ledger wallet?
See ya!
:)
