Shiba Inu (SHIB) is a meme-based cryptocurrency designed to compete with Dogecoin, which gained popularity due to Elon Musk’s tweets. It gained traction during the recent crypto market upswing, and if you’re reading this, you’re probably interested in increasing your SHIB holdings while waiting for the next bull run. This article will show where to stake Shiba Inu tokens to grow wealth.
What is Shiba Inu Staking?
Staking SHIB involves locking up your tokens in a pool to earn rewards. Different exchanges offer varying interest rates based on the number of tokens staked and the staking duration, with payouts available daily, weekly, monthly, or annually.
Staking provides liquidity for exchanges and supports node validators, which are essential for proof of stake (POS) protocols. Staking on decentralised exchanges is available to anyone with a crypto wallet, while centralised exchanges may have restrictions depending on the jurisdiction.
If you’re interested in staking SHIB, Shiba Swap is the official decentralised exchange for Shiba Inu and has a sizable community of over 3 million followers on Twitter.
How Shiba Inu Staking Works
Shiba Inu is an ERC20 token that isn’t mined. Instead, users can earn rewards by staking their Shiba coins through a Burying process. The rewards come in xBONE, xSHIB, and xLEASH tokens, which are proportional to the amount of Shiba coins staked. By staking their Shiba coins, users provide liquidity to the pool and support validators.
Shiba tokens have a large and active community, making them available on almost all major crypto exchanges worldwide. Most of these exchanges support Shiba staking, including Binance and Crypto.com, two of the largest centralised exchanges. These exchanges offer different interest payouts, which can be daily, weekly, or monthly.
Staking Shiba is also possible on decentralised exchanges using crypto wallets such as Metamask. Shiba Inu has its own DEX, ShibaSwap, which encourages users to stake their SHIB. To do this, users can deposit Shiba tokens in wallets for the DEX or buy Shiba Inu from centralised exchanges and stake them there.
Where to Stake Shiba Inu?
Stake Shiba Inu on a DEX
To earn a yield on your SHIB tokens, staking them on a decentralised exchange like Uniswap offers the highest ROI. Investors can earn fees whenever tokens are traded by providing liquidity to a SHIB/ETH pool. Currently, the Uniswap V2 SHIB/WETH pool yields 22.85%.
For investors looking to compare all yield farming opportunities using the SHIB token on the Ethereum mainnet, platforms like Defillama can be used. However, it should be noted that this method is complex and only suitable for experienced investors.
Stake Shiba Inu on a CEX
The most straightforward way for novice investors to earn a yield on Shiba Inu is by staking on a centralised exchange. Unlike decentralised exchanges (DEXs), which demand users to provide liquidity to pools, you simply transfer your SHIB tokens onto a platform like Bybit and stake them.
This enables you to earn interest on your tokens with no further effort. Bybit is presently offering a 0.55% APR for staking SHIB tokens, which is considerably lower than the DEX approach, but it comes with much less risk and no impermanent loss.
How to Stake Shiba Inu?
Stake Shiba Inu on Binance
To stake your Shiba Inu tokens on Binance, you need a verified account with at least 800 SHIB tokens. To begin staking, log in to your Binance account using either the mobile app or the website.
Next, click on the “Wallet” option on the top menu bar, select “Fiat and Spot,” and then click on the “Earn” button. Look for the Shiba Inu token in the “Action” column and click “Earn,” then choose “Locked.”
Press the “Subscribe” Button, enter the duration you want to lock your SHIB and the amount, then accept the Binance Simple Earn Service Agreement and confirm the transaction. The longer you lock your tokens, the more rewards you can earn. You’ll receive rewards in SHIB tokens every day.
After the staking period ends, the number of staked coins will be returned to your wallet along with the interest earned. If you access the “Earn” section again, you’ll see your SHIB locked.
Stake Shiba Inu on ShibaSwap using Metamask
To stake Shiba Inu on Metamask, you need to first have Shiba Inu tokens in your Metamask wallet. There are two ways to deposit Shiba Inu tokens into Metamask: buying them from an exchange and withdrawing them to your Metamask wallet or swapping cryptocurrencies on Metamask for Shiba Inu.
To stake Shiba Inu on Shiba Swap using Metamask, visit the Shiba Swap website and click “Connect Wallet.” Connect to Metamask and sign the transaction on the pop-up to approve the connection.
If you already have Shiba Inu in your Metamask wallet, proceed to the next step. Otherwise, select “Swap Tokens” on the home page to swap your tokens for Shiba Inu.
On the home page, click “Stake Tokens.” On the new page, click “Bury Shib” and enter the amount of Shib tokens you want to stake.
Finally, click “Approve” and sign the transaction on the Metamask wallet.
It’s important to note that interacting with the Ethereum protocol can charge fees as high as $20, so ensure that you have enough ETH in your wallet to cover these fees. Shiba Swap also offers other features such as providing liquidity to earn Bones, trading NFTs (Shiboshis) and voting on governance, and earning Bones while at it (Doggy DAO).
Pros & Cons of Staking Shiba Inu
Staking Shiba Inu (SHIB) tokens can provide various benefits. By holding a specific amount of SHIB in a wallet for a set period, you can earn passive income in the form of additional SHIB tokens. You can also have a say in the governance of the Shiba Inu network through voting on proposals, contributing to increasing demand for SHIB by helping to secure the network, and gaining access to exclusive features and benefits on the Shiba Inu platform.
However, staking SHIB also carries certain risks. The crypto market is highly volatile, and the value of SHIB can fluctuate rapidly, resulting in losses for stakers. Staked tokens are stored in a wallet that could be vulnerable to hacking or other security breaches, and the underlying smart contract that powers the DEX platform may have technical or programming issues, which could lead to the loss of staked tokens. Besides, the cryptocurrency market is highly competitive, and new projects and tokens may emerge that offer better returns, which could decrease demand for SHIB.
As with any investment, it’s important to note that staking any cryptocurrency involves taking on risk, and there is no guarantee of returns. Before staking SHIB, it’s recommended to research and understand the risks involved thoroughly and to consult with a financial advisor if necessary.
Shiba Inu Staking FAQs
What is SHIB (Shiba Inu)?
Shiba Inu emerged as a meme coin cryptocurrency in 2020 and gained significant popularity during the recent crypto market boom. With a market capitalization of $7.3 billion, it currently ranks as the 13th largest cryptocurrency globally. Shiba Inu is often considered an alternative to Dogecoin, as it also features the same canine breed (Shiba Inu) that Dogecoin is based on, and has a strong following among enthusiasts.
How does Shiba Inu work?
When you start a transaction on Shiba Inu, it is recorded on the Ethereum blockchain, which means that the transaction cannot be changed. This information is combined with other transactions in a block to form the blockchain, which is then validated through consensus.
How to use Shiba Inu?
There is a wide range of use cases for Shiba Inu. Price speculators or investors can earn profits through it. Holders can use it as a payment method at authorised retail stores to purchase real-world goods and/or buy Shiboshi NFTs on the Shiba platform. Experienced users can stake their Shiba Inu tokens at liquidity pools to obtain rewards.
How to earn money with Shiba Inu?
To earn with Shiba Inu, staking is the primary method. This involves holding some of the cryptocurrency in a wallet and using a staking service offered by exchanges to earn a fixed percentage for a set period. Burning your tokens on the Shibaswap portal is another way to earn, which involves removing cryptocurrencies from circulation, thus reducing the total supply and potentially increasing the coin’s price. By burning your Shiba Inu, you receive another token in the Shiba ecosystem as a reward.
How much can I earn with Shiba Inu staking?
If you stake Shiba Inu, you can earn an Annual Percentage Rate (APR) ranging from 3% to 5%, depending on the exchange and the number of tokens you stake. You can purchase and stake your Shiba Inu coins using Binance or Crypto.com. Staking 1,460,000 Shib for 360 days can yield 73,800 extra coins in your account.
Where to store Shiba Inu tokens?
Shiba Inu holders have the option to store and manage their SHIB tokens on the official Shiba Inu software wallet. Additionally, other software-based wallets like Trust Wallet, Metamask, and Atomic Wallet also support the storage of Shiba Inu. Centralised exchanges for digital assets, such as Binance and ByBit, can also store SHIB, but the private keys are held by the exchange and not the investor.
The Bottom Line
Staking Shiba Inu tokens is an attractive option for investors seeking passive income and a voice in the Shiba Inu network’s governance. However, staking carries inherent risks and should be undertaken only after researching and understanding these risks. Investors have the option of staking on either a decentralised or centralised exchange, depending on their preferences and risk tolerance. Irrespective of the chosen option, all stakers must secure their wallets to prevent any loss.
