How to Stake MATIC Tokens in Polygon Network

If you're new to cryptocurrency, you may be wondering what staking is and how it can help you earn passive income. Learning to stake Matic in Polygon can be a great asset to your earnings.

Matic is the symbol for Polygon, and it’s also the platform name where you can scale and connect blockchain networks. For example, the Polygon platform can connect every Ethereum-based project, making it easier to work and process data.

In this article, you will learn what a PoS network is, why it’s essential for staking, and which platform would be the best if you want to dive deep into the process and stay safe along the way.

Let’s dive straight into the article and learn about Polygon (Matic) and how to get the most out of it!

What is MATIC?

The Polygon network scaling solution works with the help of sidechains for off-chain computation and PoS (Proof of Stake). PoS ensures asset security while scaling.

Anyone with enough tokens can secure their cryptocurrency, thanks to PoS. The system aims to achieve consensus, which happens when a transaction in a block receives enough votes at a checkpoint from other people who stake Matic.

Let’s go back to Polygon for a second. Polygon (Matic) was introduced as a solution to the heavy traffic of transactions on Ethereum. The ETH fees were rising, making the Ethereum network unaffordable for common users running DApps (decentralized applications) on its ledger.

Matic is the first decentralized Layer 2 scaling solution on top of Ethereum, making it one of the most important protocols for developers working with dApps today. It’s a scalability solution for Ethereum. It’s a layer 2 scaling solution, which means it allows dApps (decentralized apps) to scale without having to change their base code.

That’s why Polygon Network exists: to speed up the transaction process of Ethereum and lower the costs, meaning you can create numerous additional DApps and networks of interconnected blockchains.

After their rebrand, Polygon kept using the Matic cryptocurrency as the network’s foundation. With the help of numerous sidechains, Polygon is a multi-level platform that unclogs anything on Ethereum. Sidechains are distinct blockchains connected to the main Ethereum blockchain that successfully support many of the DeFi (Decentralized Finance) protocols ETH has to offer.

What is Staking?

Staking is a way of earning passive income. Staking Matic allows you to secure the blockchain by locking up your tokens and earning a portion of all transaction fees on that chain. As an incentive, you will also receive a share of the new tokens created by minting (the process of adding new blocks).

Only blockchains with a Proof-of-Stake (PoS) consensus algorithm are subject to staking. For example, according to how many tokens a participant node holds, PoS assigns it a portion of the responsibility for the upkeep of the public ledger.

You will also come across the term “validator,” which refers to users who stake their crypto in a PoS blockchain during the “staking period” to receive rewards. The more coins you stake, the more PoS validators there are to choose from. Anybody who has the required amount of coins can take part in validation—the process of verifying transactions in order to receive staking rewards.

A Proof-of-Stake (PoS) blockchain can scale better than a PoW (Proof of Work) one because it uses less energy. Although PoW is a common consensus algorithm, to verify and process transactions and add them as a new block to the blockchain, miners must compete in solving challenging mathematical problems. Yes, it is reliable and safe for verifying transactions, but it consumes far more energy and time to complete.

This means a limited volume of transactions that a blockchain can process at once and consequently creates a scalability problem. This is another big reason why PoS scales much better, and users prefer it to PoW.

How to Stake MATIC in Polygon

Staking is a process where you lock up your Matic tokens (MATIC) in an Ethereum smart contract, which rewards you with interest payments while you keep them locked up. You can stake as little or as much as you want—there’s no minimum amount required for staking.

Once you decide how much MATIC you want to stake, all that’s left is opening up an Ethereum wallet that supports smart contracts and sending coins.

You can stake Matic on Coinbase, Binance, and even MetaMask, as these are a few examples of centralized exchanges where Matic can be staked. You can stake your Matic tokens on any of these platforms.

Although you can also stake Polygon on decentralized exchanges, you will receive more benefits for your Matic if you stake on a controlled exchange platform.

The staking platform you decide to use needs to deliver significant returns on your staked Matic tokens, be audited by blockchain security auditors, and have a history of providing reliable service.

The staking procedure is pretty similar across most exchanges. To pay the Ethereum gas fees in a compatible wallet and open an account on your preferred platform, you need Matic tokens and some ETH. We will explain how staking Matic on Polygon works in the next four steps:

#1. Go to the Polygon Website

Once you are on the Polygon website, you will be given an overview of the website’s stake page. Create a new account on Polygon, or sign into your existing one (if you have one already).

#2. Connect to a Wallet

Select the wallet of your choice (e.g., Metamask, Trust Wallet, etc.) containing the Matic tokens you want to stake by clicking “connect to a wallet” in the top right corner of the page.

#3. Validators

You will pick a validator by visiting the staking page to find various links. These include the stake calculator, support, Polygon Explorer, and network summary statistics. To choose a reliable validator, look at the chart collecting crucial statistics.

To avoid losing any tokens to slashing, you must guarantee that “Checkpoints Signed” is 100 percent complete. This means a validator hasn’t missed any checkpoints.

The percentage of winnings that the validator retains from the entire bet is displayed in the “commission” column. To maximize your rewards, you want your commissions to be as low as feasible.

#4. Delegators

When it comes to the Delegator role, it means accepting it by selecting the “Become a Delegator” button. Now you can transfer your tokens, and they will be staked and rewarded after you click “approve” and “confirm.”

Which Staking Platform Can You Use to Stake MATIC

The most reliable platforms you can use to stake Matic are, of course, Binance, ByBit, Crypto.com, Stakebox, Lido Finance, and Metamask.

For longer contracts, staking Polygon on Binance provides investors with bigger rewards. The way that Matic staking is set up on Binance rewards investors for securing their coins for extended periods of time with higher profits.

Polygon is an easy-to-use app that allows users to stake Matic tokens through their mobile device or computer browser (no download required).

One of the top staking platforms in the industry is Lido Finance. The platform wants to make staking easier while also making sure that users’ money is safe and useful. The platform’s liquidity staking structure is what distinguishes it. Lido has a secure crypto wallet that allows users to stake Matic on their phone or desktop computer.

Stakebox is a hardware device designed specifically for staking cryptocurrencies such as Matic. Stakebox connects directly with your computer via USB, allowing users easy access from anywhere. Stakebox comes with a built-in screen that displays the current price of Matic and other currencies. You can track your earnings easily without any additional software.

How to Stake MATIC with Lido

Lido Finance enables you to receive staking rewards without locking your Matic tokens. The Matic tradable liquid tokens are what you get in return for staking your tokens.

Once again, in order to pay the Ethereum gas fees in a wallet that is compatible with Ethereum, you must have Matic tokens and some ETH.

This is how you can stake Matic with Lido (the simplest version):

1. Go to Lido Finance. Select “Stake Matic” to access Lido Finance.
2. Connect your wallet in step two. To link the wallet (Metamask for example) containing the Matic tokens you desire to stake, click “Connect to a Wallet” and follow the on-screen directions
3. Swap Matic. Select “unlock tokens” and enter the number of tokens you want to stake. You will exchange your Matic tokens for Matic tokens. The transaction must be approved by your wallet
4. Stake Matic. Click “Stake now” after receiving the Matic tokens to confirm the transaction in your wallet.

Why Use Polygon: Top 3 Benefits

You might be interested in knowing Polygon’s main advantages if you want to stake Matic. We will explain more about Polygon’s benefits, especially if you’re thinking about purchasing Matic.

Security

Regarding various cyber attack scenarios, Polygon offers “Plasma Guarantees.” In any scenario, users must begin mass departing if their assets on the plasma chain have been hacked.

Utilizable root chain smart contract structures are offered by Polygon. By effectively piggybacking on Ethereum’s security, Polygon’s Plasma contracts provide the same. The user's money is never at risk unless Ethereum is.

Simply put, a plasma chain’s consensus mechanism is just as safe as the main one’s. From this, it can be determined that the plasma chain can employ very basic consensus techniques while remaining secure.

Scalability

Swift transaction processing is another great advantage: Polygon can maintain this processing speed by utilizing a consensus mechanism that completes the transaction confirmation procedure in a single block. The processing of a block takes Polygon an average of 2.1 seconds.

Low Transaction Fees

The platform’s transaction fees are kept to a minimum by Polygon, with an average transaction price of about $0.01. You can send money anywhere in the world for a dollar and receive it within minutes.

Easy to Use

If you’re new to cryptocurrencies, Polygon is easy to get started since they will provide you with various tools such as wallets, web applications, and detailed instructions on how to use them.

Final Thoughts

The Internet of Things (IoT) for the Ethereum blockchain is what Polygon seeks to build. The project offers a simple architecture so that new and current blockchain projects can be built on Ethereum without scaling problems or compromising security or decentralization.

Users can get paid for validating transactions on the blockchain by staking Polygon’s Matic token on the Polygon blockchain, which is a revolutionary thing.

Staking Matic tokens is a great way to reward yourself while supporting the Polygon network. Staking carries some dangers, such as the possibility of hackers or money loss, but these can be reduced by taking the necessary steps and keeping your money in a secure wallet.