The Ripple community is engaged with the XRP ledger, despite an ongoing battle with the US Securities and Exchange Commission (SEC), to be released on 11 September 2023. With the latest rippled version 1.12, it will become easy and efficient for the XRP holders to make passive income through staking.
Current Performance of XRP
Ripple, one of the top-rated digital assets in the crypto market, is mainly used for trading, investment, and transactions. XRP is Ripple’s cryptocurrency token, used for transferring funds across borders at a low cost. Focusing on history, XRP was launched in 2012 to give tough competition to the crypto leaders including Bitcoin, Ethereum, USDT, and so on. The token is mainly designed to transform transactions from a centralized system to a more open infrastructure along with significantly cutting costs. Instant and cheap transactions made XRP a strong player in the list.
Staking Ripple offers individuals the opportunity to earn rewards on XRP. The liquidity pool presents XRP owners with passive income. Before going through the process of XRP staking for generating passive income, it is vital to understand the concept of staking.
Staking is the process of locking particular crypto for a set period of time to support the functioning of a blockchain and confirm transactions. In return, more cryptocurrencies were earned and are available for digital assets working with proof-of-stake (PoS) models for processing payments.
After understanding the staking concept, you are ready to explore the XRP staking process.
How to Stake XRP for Passive Income
Surprisingly, Ripple doesn’t operate on a PoS model, as a result, an individual can’t stake XRP directly on the Ripple network. Platforms like crypto exchanges or lending platforms including Crypto.com, Nexo, and Binance made staking XRP feasible. However, earning interest on Ripple is similar to earning interest at a bank by keeping the deposits there. Also, to make interest from XRP coins, it is important to trust the coin with the third-party platform. Let’s understand XRP staking using the Binance platform.
The very first step is to create a Binance account and complete verification. Once done, deposit the amount of XRP you want to lock to earn interest. The next step is to visit the Binance Earn and log in to the page. Simply clicking the “Simple Earn” option will redirect you to the page consisting of different coins. Searching for XRP and subscribing is the only thing you need to do. Entering the subscription amount will initiate the staking process. Entering the amount you want to stake will result in a real-time APR pop-up, exemplifying rewards.
The current interest rate is 2.26% and may vary with time. The last step is to confirm the transaction. At present, the XRP price is $0.4966, a decline of 1.76% in the past 24 hours with a market cap of approximately $26 Billion.
Conclusion
Staking XRP directly over the Ripple platform is not possible and requires crypto exchanges or lending platforms. To stake XRP it is essential for the user to trust the digital asset with the third-party platform.
