Staking using XRP is a viable option, offering you special staking rewards in return - but what does it do, and should you consider it?

Staking XRP

While the XRP system itself does not allow you to stake coins, there are great platform alternatives that have an Earn program based on staking rewards - as well as ways to earn passive income.

Staking rewards, you with income over time - you start earning interest the moment you stake coins. The more digital assets you stake, the higher the interest rate offered.

As you earn interest payments, your total funds in the account increase, which you can exchange for usable money.

What is Staking?

Staking coins puts them under the proof-of-stake system, giving the blockchain full control. They help to verify transactions on new blocks.

As compensation, you earn rewards from the proof-of-stake system, primarily by letting you earn interest in the form of even more cryptocurrency.

Is Staking XRP Possible?

The Ripple platform does not generally support staking itself due to the risk involved.

However, a platform like coinpass can provide a way to start earning interest in a large amount as staking rewards - and they support XRP as a currency.

Why Stake XRP with a third party?

Staking your coins to help validate transactions through the proof of stake system can be helpful to the blockchain. But what makes it worth your time?

Staking Rewards Interest

You can earn rewards through the proof of stake system. This interest will build into a full investment on even the minimum amount of crypto, which you can withdraw to exchange for money or use to invest elsewhere.

Your tokens and balance are kept secure, and you can transfer your token out of the balance to your regular wallet.

You just need to keep to the minimum crypto level to actually assist the proof of stake system.

Staking XRP is Passive within a 'Ledger Vault'

Staking XRP basically puts it into an XRP ledger vault until you are ready to make a withdrawal.

Not only do you get the benefit of a good interest rate on your balance, but your crypto tokens are kept secure.

Is it Safe to Stake XRP

Choosing to earn rewards through this is entirely legal. Some platforms give you ownership of private keys to give you total control, and the funds you earn are rewards for the work your tokens are aiding.

It Makes Your XRP Useful

Allowing your XRP to passively earn rewards can be useful, even with a small interest rate. The added savings can quickly build up at even a decent rate of interest, and you will not lose anything by withdrawing.

Platforms like coinpass earn a lot of customers by providing this interest and disclosing the amount of funds you could earn.

You Strengthen the Blockchain

Dedicating XRP or other coins to the blockchain helps strengthen it, protecting your other assets. This improves the entire crypto market, as well as the market for your chosen coin (in this case, XRP).

The Pros of XRP Staking

What do you actually get for staking like this? Understanding your staking rewards can make a big difference if you are considering this option but do not fully understand how your assets are used.

No Fees

There are no fees charged on assets being used like this, making your funds less costly to maintain in certain crypto markets. The interest rate also ensures that you earn more tokens as a reward.

You Get Rewards and Passive Income

Earning even a small portion of your crypto token back as interest is an amazing reward.

The value of a single token can fluctuate wildly, meaning that a single price bump can turn your reward into something even more useful.

You Can Use Idle Crypto

If your crypto was just sitting there gathering dust, staking it increases its value, fills your wallet with new tokens, and gives you a reward with no fees attached.

It can also improve your savings since you get the tokens back after you lend them to the blockchain.

You Get Great Security

Choosing to lend tokens to the blockchain increases their security since they are not in your crypto wallet.

This means that your Ripple is not as easily stolen, and it is nigh impossible to steal crypto currently being used like this.

It's All Recorded

The entire process and balance are covered in your ledger, with a new ledger entry for each exchange.

This means that every reward goes into your ledger, every piece of staked crypto goes into your ledger, and the total reward funds you get are in the ledger too.

This means that you have a full ledger and record of your assets at each stage, as well as every reward.

This can be important if you need to show your ledger as proof of something or just want to keep constant activity on your ledger while you are letting your crypto sit unused for a while.

It's Easy

Most of the time, you only really need an account and some crypto to do this.

For example, a Nexo account allows you to stake XRP, even if you just made and verified your Nexo account yesterday.

The same goes for coinpass, which can arguably boost your assets even further.

It's Quick

Signing up to platforms like coinpass gives you a great way to stake, create new buy and sell orders, or even just deposit crypto.

A good stake reward is always worth looking into, and it does not take long to get into a position where you can stake without issue.

The Risks of Staking XRP

Staking also has very - very minor - concerns. Most people will not need to worry about them, but mentioning them is important to the people who might not be able to stake consistently (or at all) in their current situation.

Limitations

When you stake, you risk losing your chance to earn extra money.

Once you deposit some crypto from your account as a stake, there is a minimum time before you can use it to make a purchase or satisfy an arranged settlement.

If you accept to stake, those crypto assets are tied up for a while. You risk not being able to sell when your currency spikes in price.

Validation

If you do not validate your account, you can't stake, even if you are interested and have crypto to transfer.

Most platforms will not even let you deposit until you create and verify your account.

Interest Rate

You do not control the interest rate.

If you are interested in staking, then you earn your reward based on your deposit, but you can only create higher interest rates by staking more.

Should You Stake Using XRP?

If you are comfortable staking your XRP, it can be a very rewarding option.

However, it might be worth trying to search up more details about your specific worries or concerns, just to make sure that you know what you are getting into.

Staking can be a great option with a lot of useful benefits and rewards, but you want to think carefully before committing. It can take a while before you can withdraw that money again.