How to Stake Shiba Inu in 2024

Launched in late 2020 by an anonymous creator known as "Ryoshi", Shiba Inu represents an Ethereum-based ecosystem fueled by a native token, SHIB.

Although the project initially positioned itself as a mere joke, it has managed to gain huge popularity among crypto enthusiasts. Elon Musk and Vitalik Buterin who strongly promoted Shiba Inu through different mass media have contributed to its success, too.

Since all of the SHIB tokens have been preminted, there is no way to mine new assets. However, there is another way to make passive income within this project. Read on to find out how to stake Shiba Inu, what platforms support this feature, and what pitfalls you should beware of.

Top Shiba Inu Staking Platforms

	Name	Score	Visit	Disclaimer
	1Binance	9.1	Visitbinance.com
	2Bybit	8.5	Visitbybit.com
	3ShibaSwap	7.0	Visitshibaswap.com/#/

What is Shiba Inu Staking?

In general, staking refers to the process of locking your assets within a blockchain network for the sake of supporting its operations. By doing that, asset holders participate in network maintenance and transaction validation while earning rewards for their contribution.

Networks that run on the Proof-of-stake consensus mechanism provide all the participants with a chance to get rewards proportionate to the sum they hold at stake. Such an approach resolves the problems inherent to PoW-based blockchains such as Bitcoin. It results in faster block creation and eliminates excessive energy consumption.

These principles are applicable to all PoS-based blockchains. Yet, Ethereum was still a PoW-based network when Shiba Inu was released. Therefore, the project developers had to implement a few additional technical elements to enable Shiba Inu staking.

How to Stake Shiba Inu

Considering the technical aspects of the project, one may find a few different approaches to staking Shiba Inu. Each of these methods comes with its own perks and complexities.

Below, we are going to briefly review three of the most popular ways of staking Shiba Inu to help you navigate the space.

Staking Shiba Inu on a centralized exchange - Easy

Centralized exchanges (CEXes) offer the most convenient and simple way of earning yield on staked assets for beginners.

In short, the process typically involves transferring your tokens to the online wallet provided by the exchange or simply buying them on the same platform. After that, all you need to do is allocate them through a dedicated service on the website with a few clicks of a mouse.

With interfaces that often resemble traditional banks, CEXes offer the smoothest way for newbies who are just starting to explore cryptocurrencies and all their related services.

Read on to find out how to stake Shiba Inu on some of the most popular centralized exchanges. We are going to provide more detailed guides later in this article.

Staking Shiba Inu on a DEX - Intermediate

To enhance the Shiba Inu environment, developers released a native decentralized exchange, ShibaSwap, in July 2021.

In a nutshell, ShibaSwap offers the same set of products as its key rivals such as Uniswap or Sushiswap. On the platform, users can swap tokens, stake them in liquidity pools, perform network governance, etc.

In addition, the platform features a unique NFT marketplace where users may buy and sell non-fungible tokens including its native collection of pixelated images called Shiboshis.

Read on if you want to try this method and learn how to stake Shiba Inu on its native DEX. We are going to provide a detailed step-by-step guide in one of the following sections.

Delegating Shiba Inu or becoming a validator - Hard

One more way to earn passive income on your SHIB tokens is to delegate them to a network validator in Shibarium or to become such a validator yourself.

Note that, at the time of writing, both of these options are available in the testnet mode only. Yet, you may still try this option to understand how it works and to be ready to start once it is released on the mainnet.

Shiba Inu staking options compared

Where to stake Shiba Inu

In this section, we are going to briefly review our pick of the top three platforms where you can stake Shiba Inu to help you make the best choice.

1. Binance - Best for security and high yield

Binance launched Shiba Inu staking in July 2021. As a leading cryptocurrency exchange by trading volume, this platform is the most reliable option of all. However, there is a different reason why Shiba Inu holders often prefer to stake their assets specifically on Binance - it offers the highest yield among all centralized exchanges.

Indeed, the combination of security and a maximum APY of 5.25% is quite attractive for users. On the platform, it is possible to lock SHIB tokens for 30, 60, or 90 days if you select a fixed-term arrangement.

In addition, the popularity and high liquidity of the exchange prevent the attempts of crypto whales to impact and manipulate market prices. Thus, staking SHIB on Binance is a good choice for those who look for a high yield when dealing with altcoins.

Also, it’s worth adding that Binance supports over 350 cryptocurrencies, offering quite a wide choice of assets to diversify your portfolio. Thus, if your investment strategy changes at some point in time, you will always be able to cash out your SHIB tokens and purchase something else.

How to stake Shiba Inu on Binance

Step 1: Register on Binance and verify your account.

Creating an account usually takes no more than a few minutes.

As the exchange employs stringent identity verification checks, it tries to mitigate the risks of money laundering and make users’ experience seamless. Therefore, you will also have to submit all the required documents to get full access to the functionality of the platform.

Step 2: Go to Binance Earn.

Before you move on, you should deposit some SHIB tokens to your account by purchasing tokens on the platform or sending them from another wallet.

Once you’ve done that, go to Binance Earn, find SHIB in the list of supported assets, and click on the “Subscribe” button on the right.

Step 3: Select staking terms.

With SHIB tokens, the APY is only 3.6% if you select a 30-day staking duration, but it gets higher as the term becomes longer. At its maximum, it reaches 10.12%. It is also possible to make use of a 120-day plan, which is provided to participants on a “first come - first served” basis. The minimum staking amount is 1,000,000 SHIB.

Click “Stake” to launch the process.

Step 4: Finalize the transaction.

In the pop-up window check once again all the terms to make sure they fit your requirements and confirm the transaction.

2. Bybit - Best For Diversity of Tools and Features

Bybit is another reputable centralized exchange that offers a broad variety of crypto investing products in one place. Established in 2018, it has global coverage and offers more than 100 cryptocurrencies for trading.

In addition to spot and derivatives trading, it features its own launchpad where new projects get a chance to list their tokens. Its other products include leveraged trading, options, NFT marketplace, Bybit Earn, and more.

With Bybit, staking comes as a part of its Earn product. Users can buy SHIB right on the platform and stake them in accordance with the product specifics immediately.

How to stake Shiba Inu on BybIt

Step 1: Register on Bybit and verify your account.

The platform offers a full range of features to verified users only. Therefore, passing its KYC procedure and uploading all the required documents is obligatory if you want to make use of its staking feature.

Step 2: Open Savings and find SHIB

Make sure that you have some SHIB in your account first. You can buy the tokens on the platform or import them from an external wallet.

Once verified, open the Crypto Savings product and find SHIB in the list of supported assets. Click on “Stake now”.

Step 3: Start staking SHIB

In the pop-up window, specify the amount you wish to stake, double-check all the staking conditions, agree to the terms and conditions, and finalize the transaction by clicking on “Stake now”.

3. ShibaSwap – Best for Simplicity

Guided by the principles outlined in its Woof paper (whitepaper), ShibaSwap is a decentralized cryptocurrency exchange that emerged in 2020 and swiftly gained popularity. The platform boasts user-friendliness, ensuring that even newcomers can easily navigate and utilize its services.

To engage in Shiba Inu (SHIB) staking on ShibaSwap, users are required to possess some secondary asset like ETH or USDT. This rule is applicable not only to ShibaSwap but also to other DEXes.

Notably, DEXes mostly operate on the Ethereum network, making ETH a pivotal asset due to its role in covering gas fees. The native cryptocurrency of the platform SHIB, in turn, is also an ERC-20 token compatible with the Ethereum network. Thus, it can be conveniently stored in Metamask or any other compatible wallet.

As for potential returns, staking SHIB tokens on ShibaSwap offers the prospect of earning an annual percentage yield (APY) of up to 10%.

How to stake Shiba Inu on Shibaswap

Step 1: Connect your wallet to ShibaSwap

The platform supports different options including a wallet aggregator WalletConnect. Yet, Metamask remains one of the most popular solutions.

Step 2: Bury tokens to start staking.

Open the ‘Bury’ section and click on the “Bury Shib” button.

Step 3: Make sure that you use the right network.

In Metamask, check if you have Ethereum selected as the network.

Step 4: Finalize the operation.

Select how much you want to stake. The functionality allows you to select 25%, 50%, 75%, or 100% of Shiba Inu available in your account.

After that, press the button ‘Approve’ and confirm the action in the pop-up window of the MetaMask wallet. After the approval, stakers can see the total number of tokens they have staked (buried) in the top left corner.

Shiba Inu Staking Platforms Compared

How much can you make staking Shiba Inu?

The staking reward rate for Shiba Inu (SHIB) depends on the platform and the specific staking method you opt for.

At the time of writing, the APR (Annual Percentage Rate) for staking SHIB can vary widely, from 0.5% to 20% or even higher on certain platforms. It's important to note that these rates can change frequently due to market conditions and adjustments made by the staking platforms.

To potentially increase earnings when staking SHIB, consider the following strategies:

• Reinvesting Rewards

• Participating in Liquidity Pools on DeFi Platforms

• Choosing platforms with high APR

Also, it's crucial to understand that the fiat value of staking rewards also heavily depends on the price fluctuations of Shiba Inu. Even if the APR is relatively high, the actual value of the rewards in fiat currency can be negatively affected by the volatility of SHIB's price.

Is there a downside to staking Shiba Inu?

Staking Shiba Inu (SHIB) comes with certain risks and downsides that potential stakers should be aware of. Here are some of the negative aspects specific to staking SHIB:

• Price Volatility - Just like many other cryptocurrencies, SHIB is known for its high price volatility. The value of SHIB tokens can fluctuate dramatically over short periods of time, potentially impacting the fiat value of your staked rewards. A sudden drop in SHIB's price could lead to a reduction in the value of your earnings.

• Security Risks - Staking often involves keeping your tokens in a hot non-custodial wallet, which exposes them to security risks. Hacks, vulnerabilities, or breaches in the staking platform's security could result in the loss of your staked tokens. Ensuring strong security practices and using secure wallets is crucial to mitigate this risk.

• Smart Contract Risks - Staking usually involves interacting with smart contracts that are not immune to bugs or vulnerabilities. If a smart contract has coding errors, it could potentially lead to the loss of staked tokens. Make sure that the platform of your choice has passed external audits to reduce this risk.

• Lockup Periods - Some platforms impose lockup periods during which you cannot access or withdraw your staked tokens. If the market conditions change unfavorably during the lockup period, you might not be able to respond effectively due to the limited access to your funds.

• Liquidity Risks - Staking can render your tokens illiquid for a certain period. If you need to sell or trade your SHIB tokens during this time, you won't be able to do so, potentially missing out on better opportunities.

The list of potential dangers is not exhaustive, as there are other negatives as well that make Shiba Inu staking risky. Yet, all of these risks can be easily mitigated if you know what to expect.

Should I stake Shiba Inu?

The decision to stake Shiba Inu (SHIB) is always your own responsibility. Carefully consider if you want to get involved with such risky activities with respect to individual circumstances. Here are some key factors to take into account:

• Risk vs Reward - Staking SHIB, like any investment, involves weighing the potential rewards against the associated risks. Higher potential returns often come with higher risks, and it's important to assess whether the potential gains align with your risk tolerance.

• HODL vs Trade - Determine whether you plan to hold your SHIB tokens long-term (HODL) or actively trade them. Staking might align better with a HODLing strategy, as staked tokens are typically illiquid for a certain period.

• Tax implications - Staking can have tax implications depending on your jurisdiction. Earnings from staking may be subject to taxation as capital gains or income. It's advisable to understand your local tax laws and obligations before getting involved in staking.

• Skill level - Consider your familiarity with cryptocurrencies in general, as well as with staking platforms and associated technologies, in particular. Experienced users might feel comfortable navigating decentralized platforms and managing the technical aspects of staking while novices would be better off sticking to centralized ones.

• Market competition - Keep in mind that the cryptocurrency market is competitive, and new projects can emerge. Evaluate whether SHIB's staking rewards remain attractive compared to other opportunities.

• Token liquidity - Consider the lockup periods associated with staking SHIB. Locked tokens might not be accessible for trading during this time, impacting your ability to respond to market changes.

• Market volatility - Never forget about the high volatility of the cryptocurrency market, which can influence the value of SHIB and your staking rewards. The fiat equivalent of the sum you earn may spike or drop at any time.

• Platform Reputation - Research the platform you intend to stake SHIB on. A reputable and secure platform can provide a safer staking experience.

Ultimately, the decision to stake SHIB depends on your risk tolerance, investment goals, knowledge, and the specific details of your financial situation. Take your time to assess these considerations and conduct thorough research before deciding whether staking SHIB aligns with your overall strategy.

Final Thoughts

Despite its playful approach, Shiba Inu has managed to gain huge popularity among crypto enthusiasts. With the support of such media figures as Elon Musk, the success of the project is likely to last.

Therefore, staking SHIB and other tokens that fuel the platform could bring good returns to those who decide to get involved in Shiba Inu staking.

CEXes offer the most convenient option for those who are just getting started. Yet, their rewards are not always the highest. Staking Shiba Inu on ShibaSwap may result in higher profits. However, it implies freezing 66% of your rewards for a pretty long period of time.

Therefore, thoroughly estimate your own capabilities and the level of your risk tolerance before you make any decision.

	Name	Score	Visit	Disclaimer
	Binance	9.1	Visitbinance.com

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