Passive Income with Cobo Wallet: How to stake LBTC
What is LBTC?
Lightning Bitcoin (LBTC) aims to improve on the popular Bitcoin model that has created the blockchain industry. While Bitcoin has done well in ensuring the security and decentralisation of transactions, its key weakness in scalability has raised doubts over its suitability to become a mainstream digital currency.
LBTC strives to resolve that by inheriting the strengths of Bitcoin by reducing the number of validators to only 101 and building its own protocols. That has allow transactions to be instantaneous and reduced transaction fees to almost zero.
How to stake LBTC?
To be a lightning node, you first have to download the official LBTC wallet and register as a delegate. Then you can either vote for yourself or get others to vote for you. The number of votes is the number of LBTC held by the voting address. The top 101 addresses that get the highest number of votes can be regarded as “bookkeeping nodes”. The ranking and votes can be seen in the block explorer.
A simpler method will be to stake with Cobo Wallet. Cobo Wallet has the highest number of votes among all delegates for LBTC and is amazingly simple to use. 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 LBTC rewards with Cobo Wallet through staking with as little as 0.01 LBTC, with rewards paid out daily at 08:00 (GMT+8). 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 20% per year just by staking with Cobo Wallet.
How?
- Store your LBTC into Cobo Cloud Wallet.
- Tap on Finance tab and choose the amount of LBTC you want to stake.
- That’s it! There is no lock-in period, however do note that rewards for current period will be forfeited if you withdraw before the end of the staking period.
Is there any risk to stake LBTC?
There is no risk to stake LBTC. You will always keep possession of the private keys by leasing to lightning nodes. In case your chosen lightning node fails to maintain constant uptime, you will only miss out a small percentage of the rewards.
What are the criteria to choose a lightning node?
A list of all the 101 active lightning nodes can be found here. The number of votes and ratio can be found in the block explorer. You might want to research on the reputation and rules of staking of each lightning node when choosing a lightning node.
Will the rewards for staking LBTC 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 LBTC 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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