How to select a Staking Service Provider | 2021
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How to select a Staking Service Provider | 2021
- In this article, we will share a 7 step guide to select the most trustworthy and reliable Staking Service Provider for your needs.
- Here you find an overview of the global Top 70 Staking Service Providers with a Staking Service Provider Map and Database 2021.
Staking Explained
- Staking or Proof-of-Stake (POS) is a consensus mechanism, the most famous one next to Proof-of-Work.
- If you hold a token on your wallet from a Proof-of-Stake blockchain you have the option to delegate your tokens (you are the Delegator) to a validator address. This validator address belongs to the professional Staking Service Provider (called Validator). If you have the technical knowledge and other resources you can also run your own validator infrastructure. In this case, you would delegate your Staking tokens to your validator address.
- By delegating your Staking tokens to a validator you are securing the POS network, the more token holders delegate their tokens to a validator, the more secure is the POS network.
- Your Private-Key and the access to your tokens will never be transferred to the Staking Provider, the PK stays always in your hands.
- For that activity you receive Staking rewards, these can vary from 5% to 30% depending on the market situation and the Staking Network.
- The Staking rewards are split between the delegator and the validator. That split for the service of the validator can be up to 15% of the total Staking rewards.
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In average you can count with 8% Staking Rewards for your delegatrion to a validator!
7 steps to select a Staking Service Provider
- Before you delegate the tokens from your wallet to a validator you should follow the 7 steps guide to select a Staking Service Provder that fits your needs.
- The more professional (reliable) a Staking Service Provider is, the more secure your funds should be, reliability is a big factor when it comes to the selection of a Staking Service Provider. If a Staking Service does not run their Staking infrastructure properly the risks of losing some Staking Rewards or general Stake due to “slashing” can happen.
- If you have the time, knowledge and money, you also run your own private validator node.
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We believe for most people (nontech people) the delegation to a trustworthy validator node is more convenient!
Please check these 7 points before delegating to a validator!
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1: Uptime: means the percentage of time a validator is online. This indicates a validator’s reliability. It is important because longer downtimes can have slashing as a result and that costs return.
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2: You should check the history of slashing — Slashing is the process of punishing a validator for being unavailable or making mistakes while signing blocks.
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3: Date of starting the service / operational time of the provider — it is likely that validators that support multiple networks and are operating for a long time are more experienced and reliable.
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4: Financial situation and the health of the company — There are costs associated with building and maintaining secure validator infrastructure which includes hardware costs, employment costs, etc.
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5: Is governance support provided? — How actively do they participate in protocol governance and similar discussions indicate their intent to further the cause of decentralization.
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6: Check the community on all channels like podcast, website, telegram, discord and so on. Is the validator active in different networks and has he a good reputation. Also, chat with some community members before and make your own impression.
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7: Who is the team behind the Staking Provider — Always check out the validator’s team page, Twitter accounts of founders, and more. Do the background check like you do before buying a car ;)
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Don´t miss any Staking updates & Validator insights – Sign up now!
4 Highlighted Staking Services
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Staking Facilities from Germany
- Earn Rewards on Digital Assets – ENTERPRISE-GRADE WEB 3.0 INFRASTRUCTURE & SERVICES.
- Secure blockchain ecosystems by staking tokens and participate in the next evolution of the internet!
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https://stakingfacilities.com/
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Stakin from Estonia
- Stakin Your trusted Crypto Rewards.
- Stakin leverages the infrastructure of leading cloud and Tier 3 colocation providers so you don’t have to operate a node by yourself. We also use sentry nodes, HSMs, and live monitoring tools to ensure that our validation operations run with 99%+ uptime.
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https://stakin.com/
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Figment from Canada
- Building Web 3.
- Figment has built an advanced blockchain platform by applying 30+ years of real-world experience operating critical internet infrastructure. Figment supports over 40 protocols that form the backbone of Web 3 and decentralized finance. Our success is measured by generating stable returns on digital assets and by fueling innovation and growth across the Proof of Stake ecosystem.
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https://figment.io/
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Chorus One from Europe
- Earn Rewards On Cryptoassets
- Chorus One helps you securely increase your crypto holdings by participating in decentralized networks.
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https://chorus.one/
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Don´t miss any Staking updates & Validator insights – Sign up now!
Staking Service Provider Map 2021:
Summary – How to select a Staking Service Provider | 2021:
- Staking Providers and Validators are important players in the Crypto industry. For securing the network with your Proof-of-Stake tokens you get a reward that you should not miss. On average you can count with 8% staking rewards.
- If you don’t have the resources to run your own validator node you should select a reliable and trustworthy Staking Service provider.
- We hope our 7 steps guide to select the best Validator Service for your need helps you in your decision-making process.
- Here you find an overview of the global Top 70 Staking Service Providers with a Staking Service Provider Map and Database 2021.
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Select the most trustworthy and reliable Staking Service Provider with our 7 steps guide!
- Find more valuable information about our Staking Providers and Staking Networks at DezentralizedFinance.com.
- If you have questions, please reach out to us via LinkedIn or Twitter.
- RISK DISCLAIMER: All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article’s content solely reflects the opinion of the writer, who is not a financial advisor. Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value, also to zero. Holding cryptocurrencies is very risky.
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