How to Stake Tezos using Atomic Wallet & Select A Baker

This is a guide to staking Tezos (XTZ) using the Atomic Wallet. The information and images are used with the permission of Atomic Wallet.

Staking can be a daunting task for first time stakers of XTZ, especially when confronted with a list of bakers to choose from and in whom you have to place your trust to earn you rewards. See what “baking” is below. I’ve provided a link to MyTezosBaker in Step 6 to assist you with deciding which baker meets your needs. If you follow the steps that are set out in this guide, you should have little trouble, if any at all, in staking your XTZ in the Atomic Wallet.

What is the Atomic Wallet?

Atomic Wallet is a non-custodial decentralized wallet. It means that you own your backup phrase and private keys, thus, you fully control your funds. Atomic Wallet has no access to your wallet and your sensitive information. Your 12-words backup and private keys are stored locally on your device and strongly encrypted. Moreover, your funds are not located in the wallet itself. They are safely stored on the blockchain. Atomic Wallet connects directly to the blockchain nodes and shows the information about your balances, transaction history and everything you see in the wallet. It also allows you to perform transactions on the blockchain. Atomic Wallet also provides you with exchange and buying crypto services with the help of their partners.

You can get the Atomic Wallet here. Do yourself a favour and try it out now. It is user-friendly, packed with features  and has a pleasant interface.

What is Staking

Every cryptocurrency transaction should be verified – that’s how blockchain works. Validation guarantees that the transaction is proceeding without any false data. To get transactions validated, they should be approved and added to a block by miners in Proof-of-Work blockchains, like Bitcoin, or get approved by validators in Proof-of-Stake blockchains. Proof-of-Stake (PoS) is a consensus algorithm, where you can stake your coins and receive rewards for transaction validation or receive dividends for holding funds. With the increase of mining difficulty, Staking has become more and more attractive for cryptocurrency investors. With Atomic, every crypto holder can receive regular rewards in a truly decentralized way. Atomic Wallet states that they do not collect any fees – and that you get a profit directly from validators.

What is Tezos (XTZ)

Tezos is a cryptocurrency built on the proof-of-stake algorithm. It allows making a profit for the baking of new blocks, which is quite like minting with the proof-of-stake protocol. Cryptocurrency staking means that you can earn passive income through owning a stake in the issuance of a coin. Staking differs from baking in what your reward is given for.

When your stake a coin you get rewarded simply for storing it for a certain period of time. In this case, the larger stake you have, the larger your passive income will be. When you receive a reward for baking, like with Tezos, you receive it for the baking of new blocks.

How do I get Tezos

You may get XTZ within the Atomic Wallet through exchanging from another cryptocurrency to XTZ.  You may also buy it on one of the following exchanges:

• OKEx

• Binance

• Hotbit

• Kucoin

What are the Steps for Staking Tezos with Atomic Wallet

Staking Tezos (XTZ) with Atomic Wallet is very simple. First, you need to download and install the app. (Don’t forget to use promo code 13T44Z) Then, follow these steps:

Step 1. Open Atomic Wallet.

Step 2. Get XTZ. You can exchange it from another cryptocurrency within the wallet or purchase from an exchange of your choice. See links above.

Step 3. Click on Tezos from the coin list.

Step 4. Click on Stake.

Step 5. You will see the staking interface: notification that you can only stake the whole balance to one validator (baker, in Tezos network), your available balance for staking, and rewards. Click Stake to proceed.

Step 6. You will see the list of bakers with applicable characteristics: reward %, current staking amount, an available amount for staking. Choose a baker according to them, or visit MyTezosBaker, which is a useful and interactive website that provides a comprehensive list of bakers with all the salient data that you require to decide on your baker.

Step 7. Enter the password and click on Confirm.

Step 8. That’s it! Your XTZ is now staked. You just need to wait — the delegated reward will be processed in approx. 2 months after the 22 cycles are done.

When do I get Paid for Baking?

The delegated reward will be processed in approx. 2 months after the 22 cycles are done. This is how the cycles work:

Cycle 1: You delegate XTZ to a baker.

Cycle 8: Tezos blockchain assigns your delegation rights to your baker.

Cycle 15: Your rewards for cycle 8 start getting collected.

Cycle 22: You get the rewards for 8-15 cycles to the address you were delegating from the baker.

1 cycle equals to 4,096 blocks. When 1 block is formed in 60 seconds, 1 cycle is formed in about 68 hours. So, you start getting the rewards after the 22 cycles are completed, which is approx. 2 months. Subsequent payments are made every 7 cycles, approx. 20 days.

What is Tezos (XTZ) Baking

In order to bake new blocks, you must have at least one roll, which is 10,000 Tezos (XTZ). If you do not have such amount in possession, you can delegate your share to a baker. The baker will be randomly selected from several bakers by protocol. The more rolls the baker has – the better are their odds for baking a new block. This is the principle of proof-of-stake consensus.

The baker receives a reward of 16 XTZ for a baked block. Tezos blocks are baked every 60 seconds. Besides bakers, endorsers, who validate new blocks, also take part in the process. This avoids double baking and double endorsing. There are 32 endorsers for every new block, and they get a reward of 2 XTZ for endorsement.

In order to bake a Tezos block, you need to delegate your Tezos share to a baker. Your and the baker’s stakes will be added together. However, delegating your share does not delegate the coins themselves and thus the baker cannot spend them. Therefore, you do not have to worry about your coins when you delegate your XTZ. This way, you can delegate your Tezos to bakers, let them use it for baking, while you receive a passive income for doing so.

In conclusion

If you haven’t used Atomic Wallet yet, do yourself a favor and download the Atomic Wallet using the links embedded herein, for which you will be rewarded with 15 AWC currently worth $0.256 each. If you use these links, I will also receive 5 AWC. If you download the app directly, please use the promo code 13T44Z. In which case you and I will receive an extra 5 AWC. You will be amazed at its simplicity, the broad selection of cryptocurrencies catered for and, lest I forget, the great support service that they provide.

You will be delighted to note that Atomic Wallet currently offers staking for the following crypto assets: COSMOS, ONTOLOGY, KOMODO, TRON, NEO, VECHAIN and ALGORAND.

Atomic Wallet states that they will soon be offering staking for the following assets: CARDANO, AWC, ICON and BAND.

You have to admit that this is an impressive list of in-wallet staking assets, which will provide you with exceptional convenience.

Thank you for reading.

Please note that the above information is correct at the time of writing. 

Disclaimer: None of what is stated above should be construed as financial advice. Please do your own due diligence and research before investing!

Atomic Wallet Website - Click here