If you are an investor in Solana and see a long-term future for it, there is no point in keeping your tokens in your wallet without generating passive income.
In this article, I will explain how to profit from Solana tokens with minimal risks.
What is Staking?
All Proof of Stake networks like Solana rely on a system where network tokens are staked to Validators, with the goal that these validators will process network transactions.
In return for their efforts, they receive transaction fees and network rewards from SOL tokens.
Therefore, staking is considered a very important aspect of the blockchain network structure, as it is based on the network's pillars: the validators and the Proof of Stake system.
Thus, staking returns are considered stable as they are not affected by token prices but are based on network activity.
If you wish to participate in staking, you can simply stake your tokens to a validator and lock them for that validator, and you will receive rewards naturally.
However, some prefer not to do that because they want to receive staking returns but at the same time do not want to give up ownership of their tokens and wish to use them in DeFi applications or for other purposes.
Thus, there is something in the market called Liquid Staking tokens, the idea being that you stake your tokens and lock them for a validator, which is usually a platform or protocol, and in return, you receive a liquid staking token equivalent in price to the original token, in this case, Solana.
Most individual investors prefer this solution because it gives them access to liquidity as well as guaranteed staking returns.
How do you earn Staking rewards with Solana?
From the homepage, look for Sol Staking
Then click on Subscribe
Then specify the amount of SOL tokens you wish to participate with (minimum 0.01)
You will see below the expected annual return, along with how much SOL profit you will earn monthly.
After that, you will receive the BNSOL token, which you can easily use on DeFi protocols and others.
