Imagine your dog working every day to earn money flowing into your bank account. While that sounds like a great idea, it’s also a wacky idea.
However, there is an at least somewhat similar scenario that is a real opportunity. Just replace “dog” with “dog inspired meme piece”. Here’s the Amazing Amount of Passive Income You Can Earn By Staking shiba inus (SHIB -0.54%) tokens.
This dog will be hunt
We will soon see the monetary amount. However, let’s first address an important question: what is staking?
The idea behind staking is that you can earn rewards by staking cryptocurrency tokens. Your tokens are then used to support the underlying blockchain when verifying transactions. The catch is that the given blockchain must use the proof-of-stake consensus mechanism as opposed to the proof-of-work protocol.
Upon first inspection, you might think that the old phrase “this dog won’t hunt” might hold true for Shiba Inu when it comes to staking. After all, the token is built on the Ethereum (ETH 0.14%) blockchain, which uses the proof-of-work protocol.
However, Ethereum is in the midst of a major upgrade to move to a proof-of-stake consensus mechanism. Its Beacon channel is already in place, bringing the ability to stake on the Ethereum ecosystem. The plan is to merge the Beacon chain with the Ethereum mainnet this year. When this happens, it will enable staking for the entire Ethereum network.
Digging up dollars
The bottom line is, yes, you can wager Shiba Inu chips. And you can earn quite a bit of money doing this.
I surveyed three cryptocurrency exchanges that support Shiba Inu staking. Below are the current yields for each:
|To exchange|| |
Maximum Annualized Yield of SHIB Staking
Binance offers the highest annualized return. The figure shown requires you to lock your Shiba Inu tokens for 120 days. Binance also offers an alternative that only requires a 10-day lock-up period with an annualized return of 10.12%.
Crypto.com seems to have the least attractive Shiba Inu staking opportunity. You can currently receive a 3% annualized return in exchange for locking up your tokens for three months.
ShibaSwap terms are the most complicated of the three exchanges. You must lock 67% of your staked tokens for six months. However, the crypto exchange allows you to claim weekly rewards on the remaining 33%.
The exact amount of passive income you will earn from staking Shiba Inu depends on the exchange you use, the lockup period you choose, and the number of tokens you stake. But it is currently possible to earn over $1,200 in annual passive income for every $10,000 of tokens staked. This is a much higher amount than you can find with most other passive income generation methods.
Bark the wrong tree?
Although you can earn an impressive amount of passive income by staking Shiba Inu, it’s not necessarily the best decision. If the price of the meme coin drops during the time your tokens are locked, you will not be able to sell them. It is possible that your loss will far exceed your stake rewards.
Investors looking to generate passive income by staking cryptocurrencies might instead consider stablecoins such as Attached (USDT 0.11%). The maximum annualized return for staking the popular stablecoin currently available is 12.3%. Tether is much less volatile than Shiba Inu. Its price has barely risen or fallen so far in 2022, while Shiba Inu is down over 40% year-to-date.
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Here’s the Awesome Amount of Passive Income You Can Earn By Staking Shiba Inu
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