Even Satoshi Nakamoto could not have predicted the sudden rise of cryptocurrencies and blockchain technology. When he published the Bitcoin paper in 2008, the goal was to revolutionize and decentralize the financial world and give power back to the people. While Bitcoin has achieved this to a large extent, it is Ethereum and other altcoins that have been at the forefront of this change. There is a specific type of altcoins that has attracted more people to the crypto sphere than any other type and this type of altcoin is the same coins. Dogecoin was the very first meme coin and after that the biggest meme coin is Shiba Inu. Shina Inu became what it is today thanks to its community members and it has proven to be very profitable for people who have invested in it. And now you can also make money with Shiba Inu tokens not only by investing in them but also by staking Shiba Inu. In this article, we’ll give you a detailed guide on where, why, and how to stake Shiba Inu and earn rewards.
What is the Shiba Inu?
The official Shiba Inu website describes it as “a decentralized meme token that has evolved into a vibrant ecosystem.” It was launched by a mysterious Ryoshi entity in August 2020 and was named after the popular Japanese dog breed Shiba Inu. The same breed is the face of the original meme token, Dogecoin. Shiba Inu is the name of the network with its SHIB native token. When SHIB tokens launched, their total supply was one quadrillion, half of which Ryoshi locked in Uniswap for liquidity and the other half was burned by sending it to Ethereum founder Vitalik Buterin. Vitalik Buterin then burned 90% of his Shiba Inu tokens worth $6.7 billion in a dead wallet and donated the remaining 10% to a charity working for Covid-19 relief in India.
SHIB tokens are built on the Ethereum blockchain and are ERC-20 tokens, and work by leveraging smart contracts. The Shiba Inu ecosystem has two other tokens, namely BONE and LEASH which are also ERC-20 tokens. BONE is the Ecosystem Governance Token and it is used by the Shib Army to vote and participate in governance on the Doggy DAO. According to the Shiba Inu website, LEASH was supposed to be a rebase token linked to the price of Dogecoin (DOGE), but it was decided not to rebase it and allow it to unleash its full potential.
While it has only been 2 years since the launch of Shiba Inu tokens and the Shiba Inu ecosystem, it has already built up a Shib army with millions of members worldwide. Shib Army is what the Shiba Inu community is known for and includes members from almost every country in the world. It started as a meme token, but the Shiba Inu network has evolved into a vast ecosystem including one of the world’s largest DeFi staking platforms, an NFT market, a decentralized exchange, and more. Its greatest strength is its strong and loyal community of over a million people which has made Shiba Inu one of the top 20 cryptocurrencies in the world. At the time of writing, the price of SHIB is $0.00001309 with a market capitalization of $7.7 billion and a 24-hour trading volume of $433.6 million. To check the live prices of a Shiba Inu coin on CoinStats, go to the Shiba Inu prices page.
How does Shiba Inu staking work?
Since the total supply of the Shiba Inu token was issued at launch, users cannot mine Shiba Inu. But they can stake their tokens and earn rewards for them. The Shiba Inu coin staking process is called Bury and the user who stakes Shiba Inu is rewarded with xBONE, xSHIB and xLEASH tokens in proportion to the Shiba coins staked. When you stake Shiba Inu tokens, you provide liquidity to the pool and also act as validators.
Shiba tokens have one of the largest and most active communities among all tokens, and as a result, the token is available to trade on almost every major cryptocurrency exchange in the world and many of them. they also support Shiba coin staking. Binance, Crypto.com, etc are two of the largest centralized exchanges that allow their users to buy and stake Shiba Inu coins and the interest payments for staking vary from daily, weekly, monthly, etc. Additionally, you can also stake Shiba Inu coin on a decentralized exchange using a cryptocurrency wallet such as the Metamask wallet. Shiba Inu has its own decentralized exchange, ShibaSwap, and the ecosystem encourages SHIB staking on its own platform.
Now let’s learn how to stake Shiba Inu on different platforms.
How to stake Shiba Inu on Binance?
Setting up Shiba Inu on Binance, the world’s largest and most popular centralized exchange, is one of the easiest things a new user can do. Binance offers both flexible staking and locked staking. In flexible staking, you can withdraw your staked SHIB tokens at any time, while in locked staking, you cannot withdraw your locked SHIB tokens without incurring a loss of interest.
To stake SHIB tokens, you will need to purchase SHIB tokens on Binance. It is very easy to buy Shiba Inu on Binance, as you just need to create a retail investor account using your phone number and email address, complete your KYC and set up two-factor authentication to protect your account. Once you have done this, the Shiba Inu buying process is very simple and you can also buy using fiat currencies like USD. If you want to buy Shiba Inu, check out our guide on how to buy Shiba Inu.
Binance offers staking options ranging from 10, 30, 60, 90, and 120 days along with flexible savings. The APR ranges from 0.50% on flexible savings to 12.09% on Shiba Inu staking for 120 days. You can choose to subscribe to any of the plans of your choice and earn staking rewards. But keep in mind that these flexible, locked staking plans are available on a first-come, first-served basis and slots fill up very quickly.
How to implant Shiba Inu on ShibaSwap?
You can stake (bury) your Shiba Inu on Shiba Swap very easily and start providing liquidity to the protocol and start earning staking rewards. To stake SHIB, you will need to connect your cryptocurrency wallet containing SHIB tokens to Shiba Swap and it supports Metamask Wallet, Coinbase Wallet, etc. You can buy SHIB from a centralized exchange and transfer them to your Metamask or Coinbase Wallet.
Or you can buy SHIB tokens on Shiba Swap by exchanging them for ETH. Make sure you have ETH in your wallet to pay for the swap and transaction gas fees as well. Once you have a sufficient amount of SHIB in your wallet, click on Stake Tokens under the Bury option. On Shiba Swap, you can stake not only SHIB tokens, but also LEASH and BONE tokens.
It should be kept in mind, however, that if you bet SHIB on Shiba Swap, you can only withdraw 33% of your weekly staking rewards and the rest is locked in for a period of 6 months.
Benefits of Staking Shiba Inu
Now that we know how to stake Shiba Inu, let’s see why it’s a good idea to start staking SHIB. Some of the benefits include:
- If you have a sufficient amount of SHIB tokens, you can earn a decent passive income on your investments without engaging in risky trades.
- As Ethereum moves towards PoS mechanism, Proof of Stake will become the go-to mechanism for the blockchain industry. And if you’ve staked your SHIB, you can be part of the revolution.
- You can provide liquidity to the Shiba Swap DEX.
- As more SHIB tokens are staked for a long period of time, this increases the total locked value, which would help push up the price of SHIB tokens.
Disadvantages of Shiba Inu Staking
As with everything in this world, there are also disadvantages associated with Shiba Inu staking. Some of them are given below:
- In order to earn substantial wagering rewards, you will need to lock in your chips for a longer period of time and wager large amounts of chips as well.
- If you stake tokens on a centralized cryptocurrency exchange and redeem your tokens before the maturity period, any interest you have earned up to that point is lost.
- Locked staking on centralized exchanges is limited to a certain quota and you may miss available slots.
- If you’re betting on Shiba Swap, Ethereum’s high gas fees can be a huge hurdle.
- The price of Shiba Inu and other cryptocurrencies is very volatile and if the price drops significantly, you may end up incurring losses after your betting period ends.
Conclusion
Shiba Inu has proven to be one of the best performing cryptocurrencies since its launch and has also outperformed the biggest cryptocurrencies. But it should be kept in mind that cryptocurrencies are a very volatile asset class and are not regulated by any law or government agency. Nothing in this article should be taken as financial advice and you should only invest in cryptocurrencies what you can afford to lose. That said, if you choose to invest in crypto, staking is one of the best ways to earn interest on your investment and establish a sustainable passive income stream.
If you are interested in coins like Shiba Inu, then Floki Inu and Saitama Inu are the next big thing and you can learn how to buy them in CoinStats guides “How to buy Floki Inu” and “How to buy Saitama Inu” respectively. You can also check live prices for Floki Inu and Saitama Inu on CoinStats at “Floki Inu Price” and “Saitama Inu Price”. In order to understand what DeFi is and how to get the most out of it, head over to our in-depth guide “What is DeFi”. To learn more about tracking your crypto wallets, go to “crypto wallet trackers”.
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