Osmosis offers a promising opportunity for users who want to start staking OSMO. Whether you have experience in staking cryptocurrencies or are new to this field, this article provides an easy guide to getting started.
What Is Osmosis Blockchain
Osmosis is a decentralized platform designed for creating and managing decentralized exchanges (DEX) and liquidity pools. It works closely with the Cosmos ecosystem, allowing it to easily connect and interact with other blockchains. The native token of the platform is called OSMO, used to pay fees and distribute rewards. OSMO holders can influence the project’s strategic direction and vote on updates.
What Is Staking
Staking is the process where you lock up your cryptocurrencies in the network to support its operation and security. In return, you receive rewards in the form of additional coins. This allows you to earn from your cryptocurrencies without selling them.
Top 6 Reasons Why You Should Stake OSMO
Staking OSMO (Osmosis) tokens offers several benefits for both novice and experienced cryptocurrency investors. Here are the top six reasons why you should consider staking OSMO.
Security of Your Assets When Staking OSMO
When it comes to security for staking OSMO or holding tokens in your balance, you can rest assured. Let’s consider the security during staking: it is influenced by the Osmosis blockchain and your wallet. Gem Wallet offers advanced security features and protects your private keys, reducing the risk of hacking, making staking as secure as simply holding assets. As for the Osmosis blockchain, validators do not have access to your assets or private keys. Your assets remain under your full control. Thus, the system provides a high level of security and independence, allowing you to confidently participate in the staking process without fearing third-party actions.
Participate in Transaction Validation by Staking OSMO
The Osmosis blockchain uses Proof of Stake (PoS) technology. Unlike Proof of Work (PoW), where miners use powerful computers to solve difficult problems and consume a lot of electricity, PoS works by staking tokens. This makes PoS more energy-efficient and better for the environment. Even though the methods are different, the goal is the same: to verify and validate transactions. By staking OSMO, you help process transactions on the Osmosis blockchain.
Stake OSMO to Secure the Osmosis Blockchain
Staking is an essential element of network decentralization and stability as it helps distribute validator power among numerous participants. his lowers the risk of a 51% attack, where one group could control most of the network and put it at risk. By staking OSMO, you earn rewards and help keep the Osmosis ecosystem secure and reliable. In this way, staking your OSMO tokens is not just about earning money, but also about supporting the security and decentralization of the blockchain.
Grow Your OSMO Tokens by Participating in Staking
The Osmosis blockchain gives you great benefits for participating, rewarding you with some transaction fees and new OSMO tokens. As a result, you not only keep your assets secure but also have the opportunity to grow your capital.
Keep OSMO Steady by Staking
Staking OSMO helps reduce token volatility, allowing investors to experience greater stability and confidence in their investments. When you stake OSMO tokens, they become locked for a specific period (14 days), which limits their availability for trading on the open market.
Participate in Governance
As a staker, you gain voting rights in the Osmosis governance process. This means you can participate in important network decisions, such as protocol upgrades, parameter changes, and community proposals. Your voice can help shape the future of the Osmosis ecosystem. By participating in voting, you also protect your assets and investments, as you vote for beneficial initiatives and can vote against those that harm the blockchain.
How to Start Staking OSMO
Follow this easy manual to start staking your OSMO tokens today:
Setting Up OSMO Wallet
To get started, download and set up Gem Wallet, a self-custody mobile wallet with open-source code. Ensure you securely save your seed phrase. This wallet will enable you to manage your OSMO tokens and other cryptocurrencies.
How to Obtain OSMO Tokens
OSMO tokens can be acquired through various methods such as transferring from an exchange, receiving them from friends, or winning them in contests. For the quickest and most convenient option, purchase OSMO directly within your wallet using a credit card.
How to Stake OSMO
Once you have your OSMO tokens, open your wallet and select the Stake option. Follow the simple steps to choose the amount of OSMO you want to stake and select your preferred validator. Refer to our comprehensive guide: How to Stake OSMO
