How to Stake Fantom (FTM) – Ultimate Guide

What is FTM Staking?

Fantom (FTM) staking involves locking up your FTM tokens to support the Fantom network’s operations, such as validating transactions and securing the network. In return for staking your tokens, you receive rewards in the form of additional FTM tokens. This process not only contributes to the network’s security but also provides a way to earn passive income.

The Fantom network uses a Proof-of-Stake (PoS) consensus mechanism, which means that validators are chosen to create new blocks and confirm transactions based on the number of tokens they hold and are willing to “stake” as collateral. The more FTM you stake, the higher your chances of being selected as a validator and earning rewards.

Staking FTM offers several benefits:
– Passive Income: Earn rewards by simply holding and staking your FTM tokens.
– Network Support: Help secure and maintain the Fantom network.
– Potential for Appreciation: Benefit from any increase in the value of FTM.
– Participate in Network Governance: Vote for upcoming features and more.

By staking your FTM, you not only earn rewards but also contribute to the network’s stability and growth.

The amount you can earn from staking FTM depends on several factors:
– Staking Duration: The longer you stake, the higher the rewards.
– Amount Staked: More staked tokens mean higher potential rewards.
– Platform: Different platforms offer varying Annual Percentage Yields (APYs).

For example, staking FTM on fWallet can yield an APY of around 6.41%, while platforms like Binance offer lower rates around 0.32% but with more flexibility.

Ways to Stake FTM

There are several ways to stake your FTM tokens, each with its own set of steps and requirements. Here are the main options:

Centralized Exchanges

Centralized exchanges like Binance and Coinbase offer user-friendly interfaces for staking FTM. These platforms often provide the easiest way to stake, especially for beginners. They typically feature simple steps to transfer your tokens, select the staking option, and confirm the staking.

fWallet

fWallet, the official wallet of the Fantom network, is an excellent choice for those who prefer more control over their staking. It provides a flexible staking option with competitive APY rates. Using fWallet involves downloading the application, transferring your tokens, and following in-app instructions to stake directly on the Fantom network.

What are the Best Places for Staking FTM?

Here’s a comparison of some of the best platforms for staking FTM:

Editor’s choice: fWallet

fWallet is my top choice for staking Fantom (FTM) due to its high APY of 6.41%, flexibility, and enhanced security as the official wallet of the Fantom network. It offers an easy-to-use interface, making it accessible for all users while allowing direct participation in network governance and security.

Step 1: Download and install fWallet.

– Visit the Fantom website to download fWallet.
– Install the application on your device.

Step 2: Transfer FTM to fWallet.

– Open fWallet and find your wallet address.
– Transfer your FTM tokens from your current wallet or exchange to fWallet.

Step 3: Navigate to the staking section.

– Open the fWallet app and go to the “Staking” section.

Step 4: Select the amount of FTM to stake and choose a validator

– Choose the amount of FTM you want to stake.
– Choose a reliable validator from the list.

Step 5: Confirm and start staking.

– Review your staking details and confirm the transaction.
– Your FTM is now staked, and you’ll start earning rewards.

While staking FTM offers many benefits, it’s essential to understand the risks involved:
– Market Volatility: The value of FTM can fluctuate, affecting the overall value of your staked tokens.
– Lock-up Periods: Some platforms might require a lock-up period, during which you cannot access your tokens.
– Network Risks: Technical issues or attacks on the Fantom network could impact your staked tokens and rewards.

Staking FTM not only earns you rewards but also gives you a voice in the governance of the Fantom network. As a staker, you can participate in important decisions that affect the network’s future. This includes voting on proposals for protocol upgrades, changes in fee structures, and other critical issues. Engaging in governance helps ensure that the network evolves in a way that benefits all stakeholders.

To participate in governance:

1. Stake Your FTM: Ensure your FTM is staked on a platform that supports governance participation.
2. Access Governance Proposals: Use the platform’s interface to view active proposals.
3. Vote: Cast your vote on the proposals you care about.

Staking FTM is a valuable way to earn passive income, support the Fantom network, and participate in its governance. Whether you choose to stake through a centralized exchange or directly on fWallet, the process is designed to be accessible and rewarding. Always consider the risks and do your research to choose the best staking method for your needs.

FAQ

What is the minimum amount of FTM needed to stake?

The minimum amount varies by platform, but generally, you can start with as little as 1 FTM.

Can I unstake my FTM anytime?

Yes, most platforms offer flexible staking options, but check the specific terms of your chosen platform.

How often are staking rewards distributed?

Staking rewards are typically distributed daily or weekly, depending on the platform.

Author

Mykolas Bartkus