Want to profit from your Aptos (APT) tokens? Staking allows you to put your tokens to work and become an active member of the ecosystem by helping to secure the Aptos network while earning rewards. This is the step-by-step guide to just that.
Key Takeaways
- Staking is the primary way to earn passive income with your APT tokens.
- To start, you need a non-custodian and secure wallet, and 11 APT at least.
- The most important choice is to select a trustworthy validator, as your rewards and security depend on their performance.
- Once you have staked, your rewards are automatically compounded with up to 30 days lock-up period.
What is Aptos and its APT Token?
Aptos is a Layer-1 blockchain built for real-world use. Its design, which originated from Meta's advanced blockchain research, is focused on providing extreme reliability, security, and the speed needed to support global applications. As a Proof-of-Stake network, its security is maintained by a global set of validators, and you can participate directly in its success through staking.
APT is the native token that powers the entire network. It's used to pay for all transactions, to interact with the growing ecosystem of applications, and to vote on the future of the platform. Staking your APT is not just a way to earn rewards, it's an essential part of securing the network and ensuring its continued operation.
Getting Started: Your Wallet and APT Tokens
Before you get started, you will need two things - the right digital wallet and the appropriate amount of APT tokens.
For this guide, we will employ the Petra Wallet, developed by the core team at Aptos Labs. It is a non-custodial wallet that will hopefully securely provide an easy-to-use interface to handle your APT and digital collectibles.
Once you have your wallet installed and set up, you'll need to fund it. To participate in staking as a delegator, you must have a minimum of 11 APT. It's always a good practice to hold a little extra in your wallet to cover any network transaction fees.
Step-by-Step Staking Guide
Step 1: Install and Set Up Petra Wallet
Follow these steps to securely install and create your wallet. The process is also visualized in the images below.
Add the Extension to Your Browser: Go to the official Petra site and navigate to the Petra Aptos Wallet browser extension. Click "Add to Chrome" to install the extension.
- Create a New Account: When you have installed the wallet, open the extension from the browser toolbar. You'll be welcomed to Petra. Click "Create an account" to begin the setup process.
- Choose Your Wallet Type: Petra offers different setup options. For maximum self-custody and security, which is essential for staking, select "Create a seed phrase wallet".
- Set a Secure Password: Make your password strong and unique. You'll use this to unlock your wallet for daily use. Confirm your password, agree to the Terms of Service, and click "Continue".
- Secure Your Recovery Phrase: This is the most critical step. The wallet will now show you your 12-word recovery phrase. Put these words down in the right order and store them somewhere offline that no one can get to. But whatever you do, don't share this phrase with anyone, as it gives them full access to your funds. Once you've got your phrase, just hit "Continue".
- Confirm Your Phrase: To ensure you've saved your phrase correctly, the wallet will ask you to confirm one of the words from your list. Select the correct word and click "Continue".
- You're All Set! Congratulations! Your Petra Wallet is now set up and ready to use. Click "Get started" to open your new wallet.
Step 2: Fund Your Wallet with APT
You can acquire APT by purchasing it on a centralized exchange and withdrawing it to your personal Petra wallet address.
To do this, inside your Petra Wallet, click the "Receive" button to find your address. Copy your wallet address from the Petra extension and paste it as the withdrawal address on the exchange platform. Always double-check the address before confirming the transaction.
Step 3: Delegate Your Stake to a Validator
With a funded wallet, you are ready to delegate. Navigate to a staking platform or a validator's page, which can be found on the Aptos Explorer. On the page, find your validator, click the "Connect Wallet" button and approve the connection request from Petra.
Once connected, click “Stake” button and enter the amount of APT you wish to stake, ensuring it is at least the 11 APT minimum.
After confirming the amount click “Deposit” button, a transaction request will pop up from your Petra wallet, which you must approve to finalize the delegation.
Well done! Your APT is now successfully staked.
Managing Your Staked APT
After successfully delegating your APT, you can monitor your position and rewards on the platform's dashboard.
- Rewards: Staking rewards are distributed and automatically compounded every epoch, which lasts about two hours. The current annual reward rate is approximately 7%, subject to change through on-chain governance. All transaction fees are currently burned.
- Lock-up Period: Staked tokens are locked in global 30-day cycles.
- Unstaking: To unstake, you'll use the "Unstake" function on your staking dashboard. An unbonding period will follow before your tokens are available to withdraw.
How to Choose a Validator
The validator choice is an important first step because the performance is directly linked to the rewards and the safety of the staked funds. When making the decision, choose validators that have high uptimes, reasonable commission rates, and an impeccable record of developing the ecosystem.
At Daic Capital, we are committed to being a top-tier validator that excels in all these areas. We are aware that selecting a validator is selecting a partner for your investment. That’s why you can stake with confidence with us:
Reliability and Performance: We build our network with the highest performance and uptime in mind. We keep our nodes up and performing top-notch at all times, so our delegators are rewarded frequently and justly without a hitch!
Security First: Your assets matter most to us when it comes to security. We have an open slashing and insurance fund policy that is designed to cover the funds that are placed with us, giving you peace of mind.
Active Involvement in the Ecosystem: We are not just a service provider but active ecosystem contributors and builders. When you stake with us, you are an active team member of the experienced team with a stake in the health of the network in the long run, its development, and decentralization.
By following this guide and joining us, you are now ready to securely participate in the Aptos network and start earning rewards on your investment!
