Passive Income with Cobo Wallet: How to stake Bytom (BTM)
About Bytom (BTM)
Digitalisation has brought immense change to how we carry out transactions and store value. However, there still exists a gap between the digital world and the real world, especially in the field of asset management. Bytom seeks to fill this gap by bringing off-chain assets (securities, bonds, dividends, etc) onto the blockchain and allow users to trade these assets on the Bytom platform.
By cutting out the middlemen in asset transfers and record-keeping, transactions will be faster than ever before and transaction fees can be kept to the minimum. Also, this system will be entirely trust-less, which is a phenomenal step forward in ensuring our assets are secure.
How does Bytom functions?
Bytom uses the Proof-of-Work consensus model, the mechanism currently employed by Bitcoin and Ethereum. It is important that the Bytom blockchain is not vulnerable to hacks like the Sybil attack and the 51% attack as Bytom’s core purpose is to handle high-value assets. For asset management platforms, decentralization and security is usually prioritised over performance.
However for Bytom, that is not good enough as they sought to solve the blockchain scalability trilemma. Hence, the platform Bystack was built, to stack the Proof-of-Stake (PoS) side-chain on top of the existing PoW main-chain to get the best out of both models. This multi-chain approach ensures users’ assets are protected with the highest level of security while ensuring this system is scalable when more users and assets start flowing in.
How do I earn PASSIVE BTM income?
For PoW mining, you can choose to setup your own mining rig or join a reputable mining pool like F2Pool to earn from mining rewards. For the purpose of this article, we will not dive into the details for PoW mining.
For PoS, you can choose to be a block producer or stake your coins with one of the block producers.
To be a block producer, you need to:
- Stake at least 1,000,000 BTM
- Have your own servers, block producer operation and maintenance technologies that can run block producers
- A certain scale of community users
Basically, it means that you need to be an established crypto company of a certain size to be accepted as a block producer. More details of the requirements to be a block producer can be found in this link.
In contrast, staking your BTM with one of the block producers is relatively simple. All you have to do is pick a block producer of your liking on the Bystack node webpage and vote/stake.
In case you are still undecided on which block producer to pick, do consider Cobo Wallet, one of the top block producers for Bytom and also the first crypto wallet company in the world to offer Staking and masternode rewards on user holdings.
If you haven’t downloaded Cobo Wallet, you can find us on all major app stores (e.g., Play Store, App Store) or download it directly from our website.
You can start earning BTM rewards with Cobo Wallet through staking with as little as 2 BTM, with rewards paid out daily. The rewards are proportional to how much you put in. The more you deposit, the higher your reward. Users can expect to earn a handsome interest rate of approximately 4.5% per year just by staking with Cobo Wallet.
How?
- Store your BTM into Cobo Cloud Wallet.
- Tap on Finance tab and choose the amount of BTM you want to stake.
- That’s it! Do note there is a lock-in period of 20 days, meaning assets cannot be withdrawn before the end of the staking period.
Is there any risk to stake BTM?
There is no risk to stake BTM. You will always keep possession of the private keys by leasing to the block producers. In case your chosen block producer fails to maintain constant uptime, you will only miss out a small percentage of the rewards.
What are the criteria to choose a block producer?
A list of all the 36 active block producers can be found here. You might want to look at the votes and rates when choosing a block producer. Also, it is a good habit to research on the reputation and rules of staking of each block producer.
Will the rewards for staking BTM change over time?
Yes, the rewards will change according to the number of coins staked. It’s just a balance between demand and supply.
How does Cobo charge?
Cobo takes 10% of the BTM rewards. Holding your assets in Cobo Wallet will always be free.
About Cobo
Cobo is a company that is firmly committed to supporting blockchain development and making cryptocurrencies easy to own and use. We emphasize long-term security, reliability, and convenience. Our key products and services reflect that vision. Altogether, Cobo offers a secure mobile wallet (Cobo Wallet), high-end cold storage wallet for advanced users (Cobo Vault), and custodial services for institutional investors (Cobo Custody).
For more information about Cobo, visit https://cobo.com
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