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Liquid Staking vs Native Staking

Diterbitkan pada: Jun 20, 2024
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Discover the differences between liquid staking and native staking. Learn to connect your Trust Wallet and stake crypto effortlessly.

Liquid Staking vs Native Staking

Staking has emerged as a popular method for cryptocurrency holders to earn crypto by participating in network security and consensus. Two primary crypto staking options have gained prominence: liquid staking and native staking. Understanding the differences between these two approaches is important for investors looking to maximize their rewards.

In this article, we explore the differences between liquid staking and native staking. We will also provide a step-by-step guide on how to participate in staking using the Web3 Trust Wallet browser.

Before We Get Started

Before we explore staking in more detail, remember that with Trust Wallet, you have access to over 24+ in-wallet staking options, making it easier than ever to contribute to your favorite networks and watch your portfolio grow.

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Download Trust Wallet as a mobile app, or install the Trust Wallet Extension on your desktop browser.

Crypto Staking Overview

Cryptocurrency staking is an increasingly popular method for investors to earn rewards and participate in the network security of blockchain projects. Staking involves holding a certain amount of cryptocurrency in a wallet to support the operations of a blockchain network. This process is essential for maintaining the network's integrity and functionality.

When someone stakes their coins, they lock them in a wallet to be used for transaction validation. In return, they receive staking rewards, usually in the form of additional coins. The rewards can be viewed as a form of interest, providing an additional income stream for holders.

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What is Liquid Staking?

Liquid staking is a relatively new innovation in the cryptocurrency space. Liquid staking enables users to stake their digital assets while retaining liquidity. Liquid staking gives users the opportunity to receive liquid staking tokens (LSTs) in return for their staked assets. These tokens can be traded, transferred, or used in other DeFi applications, providing a layer of flexibility that native staking lacks.

Some of the benefits of liquid staking include:

Pros and Cons of Liquid Staking

Liquid Staking Pros

Liquid Staking Cons

Liquid staking has been welcomed by several innovative protocols, each offering unique features and benefits to users. Here are some of the most popular ones:

RocketPool

RocketPool is a decentralized Ethereum staking protocol that allows users to stake their ETH and receive rETH, a liquid staking token. RocketPool is designed to be highly decentralized and secure, with a robust network of node operators. Users can stake as little as 0.01 ETH, making it accessible to a wide range of investors.

Lido

Lido is another leading liquid protocol, supporting multiple blockchains such as Ethereum, Solana, and more. When users stake their assets with Lido, they receive liquid staking tokens like stETH (staked ETH) that can be used in DeFi applications.

Ankr

Ankr provides a decentralized infrastructure for Web3, including liquid staking solutions for multiple blockchains. Users can stake their assets and receive liquid staking tokens that can be used for further investments within the DeFi ecosystem.

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How to Connect Your Trust Wallet to Liquid Staking Protocols

Below, we’ll use RocketPool as the example, but the process is generally the same for most protocols.

If you’re using the mobile app, open Trust Wallet and select the “Browser” tab, then search “RocketPool” or enter the URL, rocketpool.net, into the search bar, and select the “Done” button. If you’re using the browser extension, simply navigate to the orca.so URL site.

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What is Native Staking?

Native staking refers to the process of locking up cryptocurrency tokens in their original blockchain network to support its operations, such as transaction validation and network security. In return for staking their assets, participants earn staking rewards, typically in the form of additional tokens. Native staking requires users to lock up their assets for a specific period, during which they cannot access or use these funds.

Some of the benefits of native staking include:

Pros and Cons of Native Staking

Native Staking Pros

Native Staking Cons

How to Stake ETH Using Trust Wallet?

Firstly, if you don’t have any of the stakeable assets in your wallet, you can deposit crypto using the “Receive” button, or buy crypto directly using Trust Wallet.

Now you’re ready to stake and earn rewards. Staking can be done in just a few steps, and here’s how.

Note: Below we’ll use staking Ethereum (ETH) as the example, but the process is generally the same for each asset.

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In addition to staking crypto, Trust Wallet lets you manage and interact with 10M+ crypto assets across 100+ blockchains. Download the latest version of Trust Wallet today.

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Disclaimer: Content is for informational purposes and not investment advice. Web3 and crypto come with risk. Please do your own research with respect to interacting with any Web3 applications or crypto assets. View our terms of service.

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Note: Any cited numbers, figures, or illustrations are reported at the time of writing, and are subject to change.