How to Stake Polygon (MATIC) for Rewards? | Crypto Staking 2023

 

In the Polygon blockchain, the MATIC token functions as the system’s native currency. The following details how to stake your MATIC tokens for rewards.

 

Abstract:

• A major advantage of the MATIC token is its ability to be staked.
• Staking MATIC might yield you up to 20% per year in interest.
• Earning money without doing anything is possible with staking MATIC.

 

What Is Polygon (MATIC)?

 

 

Polygon’s native token is the MATIC token. Most operations on the distributed network, such as governance and staking, are driven by the digital asset. Investors in the Polygon cryptocurrency have a say in how the protocol is run and can reap financial rewards if they stake their tokens. In 2021, the MATIC token was one of the best performing digital assets, as predicted by crypto events. In December of 2021, the digital asset’s value reached a record high of $2.92, a gain of over 31,000% from its 2019 low of $0.003021.

 

Simultaneously, the value of the digital currency has plummeted alongside the broader crypto market, losing 63% of its all-time high in the last few months. With a 54% increase in value over the past month, the digital asset is regaining its former prominence.

 

• Being the network’s utility token, MATIC is essential to the operation of the Polygon protocol.
• It paves the way for network transactions including voting, trading, and staking.
• The value of the digital asset surged in 2021, increasing by more than 31,000% from its 2019 low to $2.92.
• MATIC has gained 54.54% in the previous month despite a general market decline.

 

 

 

 

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What Is Polygon (MATIC) Staking?

 

 

Staking MATIC tokens on the Polygon network includes locking up those tokens for a set amount of time to ensure the safety of the network. Because of this, the network’s operations are spread out, making it more secure than if it had a centralized architecture. As compensation for helping to keep the network safe, “Staker” tokens (MATIC) are created. The MATIC token can be used for both the payment of network fees and the execution of network policies.

 

By depositing funds in a staking pool, investors give a validator permission to operate nodes on the network in exchange for tokens. Token holders receive incentives according to the amount they stake, and their nodes are put to use bolstering the Polygon network’s security infrastructure. For this reason, a greater risk translates to a larger return for the investor. Users can do one of two things to gain access to Polygon MATIC tokens. To begin with, they can join the network as validators and start their own nodes. Self-staking is a possibility in this mode, with a minimum stake of 1 MATIC.

 

The Heimdall Validator and Bor block producing nodes are managed by the polygon validators. In order to select MATIC validators, an on-chain auction is held. Individuals selected can take on the roles of both validators and block makers. But, if a validator is found guilty of misconduct, they will lose all of the tokens they have staked. Typical downtime or block double-signing are two possible causes for this.

 

Capitalists have the option of becoming “delegators,” a role in which they cooperate with others to maintain the safety of the network. Those that have the knowledge of cryptography but lack the resources to operate a validator node are known as delegators. They give their tokens to a validator and in exchange for a cut of the earnings, they ‘delegate’ them. As the delegator shares the profits with the validator, the delegator also shares the risks. Delegators run the danger of having their stake reduced in proportion to their stake if the validator engages in criminal activity.

 

 

 

 

How Much Money Can You Make by Staking MATIC?

 

 

There is no universal solution to this topic; nevertheless, around 12% of Polygon’s 10 billion tokens have been set aside for staking incentives. As a result, users are issued roughly 1.2 billion tokens to use in protecting the network. On its website, Polygon advertises an annual percentage yield (APY) for validators and delegators of 14.3 percent.

 

When it comes to return on investment (ROI), a leading cryptocurrency exchange like Binance offers returns anywhere from 4% to 19% after staking MATIC for a period of 90 days. Interest rates are offered on a first-come, first-served basis and are subject to change.

 

 

 

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Advantages of Polygon Staking

 

• Provide Incentives for Idle Cryptocurrency. The principal advantage of staking coins is the returns generated by investors for delegating their currencies. If they are not actively trading the markets, traders can employ their idle cryptocurrency.
• Contribute to the Success of the Network. Staking’s sole purpose is to secure the network and decentralize activities. This is essential to ensuring that the network does not have a single point of failure, hence reducing the likelihood of being hacked by a bad actor. By staking, users effectively ensure the network’s continuous operation and possible success.
• Vote. Utility tokens such as MATIC fulfill multiple functions. In addition to receiving incentives with their tokens, investors can also vote with them. Thus, they will be able to participate to any network initiatives or forthcoming projects.

 

 

 

 

 

Disadvantages of Polygon Staking

 

• Inability to Get Money Out When cryptocurrency is staked, it is locked away from use for a set time period. Other from waiting for the unlocking period to end, investors won’t be able to do much on platforms like Binance that provide ‘Flexible’ earning choices. Unlocking and withdrawing assets under Binance Locked Staking typically takes between 48 and 72 hours.
• Value could fall. Although traders can increase their token supply by staking, their staked assets may lose value during the lockup period. Since investors won’t be able to sell or exchange their holdings during the lockup period, their fiat valuations may drop.
• Slashing. There is a disciplinary framework in place for staking. Given the importance of its function, failure is not an option. Oft times they are punished for it. In the event that a validator or delegator commits a verification error or experiences a sluggish internet connection, their tokens will be halved.

 

 

 

 

 

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How to Stake Polygon (MATIC) ?

 

 

In the blockchain, there are four primary ways to stake Tokens and collect rewards. These strategies include:

 

• Staking via a centralized exchange entails placing tokens on a centralized exchange and allowing the exchange to handle the staking procedure.
• Delegate directly to a validator — Your tokens can be delegated to a public validator. The validator wagers on your behalf and distributes your reward share at the conclusion of the wagering session.
• Liquid staking is a procedure that allows you to stake funds in order to earn rewards while retaining access to those funds. It releases Polygon tokens from their lockup periods.
• You can rent a cloud server to serve as a validator for the Polygon network if you have the necessary resources. You must ensure that your server is available at all times to validate transactions; otherwise, your incentives will be reduced and you may be expelled from the network after several infractions.

 

 

 

 

 

Conclusion

 

Because to its enormous potential, polygon crypto is one of the most sought-after digital assets in the cryptocurrency market. The scaling solution has quickly risen to the top of the list of developers’ preferences in the cryptocurrency sector by making Ethereum more accessible and interoperable.

 

Our analysis of the various staking alternatives available to Polygon leads us to believe that Binance is the best site to stake MATIC tokens and earn a passive income. If you’re interested in staking Polygon on Binance, you may do so with no fees and get a large return on your MATIC tokens.

 

 

 

 

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FAQs

 

1.What are the incentives for staking in Polygon?

Staking participants on the Polygon network are rewarded with these tokens (12% of the total supply).

 

2.How much money do you make by betting on MATIC?

Depending on the strategy you employ, staking MATIC can net you annual interest rates of 20% or more.

 

3.Where would you recommend I put down a bet on MATIC?

If you want to maximize your earnings, running a validator node is the way to go. If you’re looking to stake Polygon, Binance offers one of the greatest rates, at roughly 20% for 90 days.

 

 

Where to Trade Polygon (MATIC)  Futures?

 

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Why Trade Crypto Futures on BTCC

 

 

To trade Crypto futures, you can choose BTCC crypto exchange.BTCC, a cryptocurrency exchange situated in Europe, was founded in June 2011 with the goal of making crypto trading reliable and accessible to everyone. Over 11 years of providing crypto futures trading services. 0 security incidents. Market-leading liquidity.

 

Traders may opt to trade on BTCC for a variety of reasons:

 

• Secure：safe and secure operating history of 11 years. Safeguarding users’ assets with multi-risk management through the ups and downs of many market cycles
• Top Liquidity：With BTCC’s market-leading liquidity, users can place orders of any amount—whAVAXer it’s as small as 0.01 BTC or as large as 50 BTC—instantly on our platform.
• Innovative：Trade a wide variety of derivative products including perpetual futures and tokenized USDT-margined stocks and commodities futures, which are innovative products invented by BTCC.
• Flexible：Select your desired leverage from 1x to 150x. Go long or short on your favourite products with the leverage you want.

 

 

 

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