If you're in search of a cryptocurrency that has the potential for high scaling and staking, you have likely come across Cosmos. Its innovative ecosystem seamlessly bridges multiple applications and services, consistently attracting attention. At the core of this remarkable network are the Cosmos Hub and its native cryptocurrency, ATOM, which has gained significant traction among the crypto community.
This step-by-step guide provides information on how to stake Cosmos (ATOM) from scratch via Cypher Wallet. The guide covers creating a new wallet, funding it, and receiving rewards. So, let's dive in and discover how you can start staking ATOM.
What is Cypher Wallet?
Cypher, a cutting-edge cryptocurrency wallet, is on a mission to streamline access to DeFi applications for the broader crypto community. By offering access to the all-encompassing Web3 financial ecosystem, Cypher serves as a one-stop wallet solution for all things Web3, revolutionizing the way users interact with decentralized finance. With Cypher, users can effortlessly buy, store, track and stake over 12 popular cryptocurrencies across Ethereum and Cosmos ecosystems.
A standout feature of the Cypher wallet is the ability to request a Cypher debit card, enabling seamless crypto-fiat transactions. Users can conveniently apply for this card directly from the wallet's user interface, provided their country is on the supported list. This added functionality enhances the overall experience, making Cypher a comprehensive solution for managing digital assets.
Even better, the non-custodial nature of the wallet means that Cypher’s customers will have complete ownership and control over their assets. This means that no external entity can access, use, freeze or seize them.
Why Stake ATOM?
There are several reasons why you might want to consider delegating your ATOM coins to a validator. Firstly, you can earn rewards with an annual yield of up to 21%. Besides, staking ATOM opens up opportunities for you to receive airdrops – free token distributions from new ecosystem projects, allowing you to earn additional income. Also note that having staked ATOM, you can participate in voting for network upgrades and other proposals as a Cosmos stakeholder, thus taking part in the management of the chain.
How to Create a Cypher Wallet?
Before diving into the world of ATOM staking, it's essential to set up a wallet. The Cypher wallet offers an intuitive UI and UX, making this process a breeze. With the Cypher wallet, you can effortlessly transfer your assets, earn staking rewards, and access the world of DeFi and NFTs, providing an all-in-one solution for managing your digital assets.
Below are 5 simple steps on how to create a Cypher wallet for storing and staking ATOM.
Step 1. Install the Cypher Wallet App
The Cypher Wallet extension is available for both Android and iOS devices. To download the appropriate version for your mobile device, simply follow one of the links to install the app on your smartphone.
Step 2. Create a New Cypher Wallet
After successful installation, open the extension where you’ll see a greeting from the branded doggie inviting you to proceed. Click NEXT.
While it is possible to import an existing ATOM wallet if you already have one, this guide will focus on the process of creating a brand-new wallet using the Cypher Wallet app.
Tap CREATE NEW WALLET.
Step 3. Secure Your Wallet with a Seed Phrase
During the wallet creation process, you will be prompted to generate a unique seed phrase, either 12 or 24 words long, to secure your wallet. This distinctive phrase serves as a crucial recovery option should you need to regain access to your wallet or restore it on a different device.
The phrase is strictly confidential and cannot be accessed by anyone else. Losing this phrase would result in losing access to your funds. Therefore, it is important to keep the phrase in a secure location and avoid taking screenshots or copying it to the clipboard. Furthermore, it should never be shared with anyone else.
Note: To become savvier in security aspects while dealing with cryptocurrency, read our comprehensive Cryptosecurity Guide.
On the next screen, which is safeguarded against screenshotting, you'll be presented with your seed phrase. It's essential to carefully write down this sensitive information, ensuring that no one can see it. Once you've securely documented the seed phrase, tap the CONFIRM button.
After that, you’ll be asked to restore 6 words with random numbers. Complete this step to get access to the wallet. If your words matched you’ll be instantly forwarded to your newly created ATOM wallet.
Step 4. Enter Your ATOM Wallet and Copy the Address
Before staking ATOM, you need to replenish your wallet with some ATOM coins. So, click FUND WALLET.
The FUND WALLET button will lead you to the Ethereum address by default. To switch to ATOM address, find a drop list at the bottom and pick Cosmos there.
Awesome! Now you’ve reached your ATOM address and can use it for receiving coins.
Select an option that works for you the best:
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Copy the address to the clipboard
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Share address through messengers
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Scan the QR from another application, from which ATOM would be sent
Step 5. Top Up Your Cypher Wallet
With your wallet set up, you can now send coins for staking to your Cypher Wallet. If you don't have ATOM in another wallet, you can easily purchase them on one of the many exchanges where ATOM is traded. Keep in mind that if you already have other coins in your Cypher wallet, you can simply buy ATOM here by clicking the Exchange button in your ATOM wallet.
To find the list of trading platforms, go to the Cosmos Markets tab on CoinGecko. Select one of them to buy and send coins to your Cypher. After the transaction is done, go back to Cypher wallet’s interface.
Once the transaction is completed, your balance will be shown in the Portfolio tab.
Staking ATOM in Cypher wallet
Alright, your wallet is replenished and ready to earn some money! You're almost there, and with a few more steps, you will start profiting off staking ATOM.
Step 1. Enter the Staking Tab
To access the Cosmos wallet within Cypher, navigate to the Portfolio section and click on the Cosmos wallet. You'll be presented with a dashboard displaying essential ATOM metrics and a price chart. To switch from the overview to the staking options, simply press STAKING in the upper right corner of the screen.
Upon entering the STAKING tab, you'll see the number of coins available for staking. Since this is your first time staking with this wallet, the entire balance of received coins will be displayed as available. To initiate the staking process, click the STAKE button.
Note that once ATOM coins are staked, they will be frozen in your wallet. To unfreeze them for further use you should initiate unstake and wait for 21 days of unbonding.
Step 2. Choose a validator
From the list of Validators that appears, choose a reputable one, such as Everstake, and click Manage to proceed with the staking process.
Considering that the validating process requires a high level of expertise and developed infrastructure it is crucial to delegate coins to the validator that provides stable performance and thus has a low risk of being penalized by the blockchain (slashing) in case of bad operation.
Everstake, a distinguished staking service provider, has earned the trust of over 625,000 customers. With a proven track record since 2018, our nodes utilize high-end hardware to support the leading Proof-of-Stake (PoS) chains, ensuring a reliable staking experience for users.
Step 3. Delegate ATOM
Click DELEGATE to proceed.
When entering the number of coins you wish to stake, keep in mind that it's essential to maintain a small un-staked balance in your wallet to cover transaction fees.
Then hit DELEGATE.
Approve a gas fee to execute your transaction.
Smiley doggo will confirm if the transaction was successful.
Done! From this moment onward, you can begin earning rewards for staking your ATOM coins. Click OK to return to the STAKING tab and monitor your staking progress.
Step 4. Manage Your Staking Ops
In the Staking tab, you will see your current stake, staking rewards and the remaining tokens available for delegation. The STAKING tab serves as your go-to dashboard for all staking-related actions, allowing you to easily stake, unstake, and claim rewards as they accrue. With this user-friendly interface, managing your staking activities has never been easier.
Step 5. Restake Your Rewards
To increase your total ATOM stake and boost your earnings, you can restake your accrued rewards by clicking the CLAIM button and selecting the option to restake. This allows you to compound your earnings by reinvesting your rewards and increasing your stake, leading to even greater returns over time.
Unlike other wallets that may require two separate transactions, one for claiming rewards and another for staking them, the Cypher Wallet simplifies this process with a single click.
The whole process is easy to conduct and takes literally a few minutes.
Other Useful Features of the Cypher Wallet
Cypher Debit Card
By navigating to the Card section from the Portfolio tab in the Cypher Wallet, you can enter your email address to join the waitlist for the upcoming Cypher debit card. This exciting feature allows for instant swapping of your crypto to USD and spending your digital assets across traditional finance (TradFi) networks, offering a groundbreaking solution for managing your finances with ease and convenience.
Options section
To enhance your Cypher wallet user experience follow the Options section.
The Address Book feature in the Cypher Wallet provides easy access to all of your token addresses for every cryptocurrency available within the wallet. Here you can copy all of them or generate QR codes if needed. Also, you can mark and save your most used outer addresses in CONTACTS.
In Referral & Rewards, you can find all current referral and bonus programs. As of now, you can copy a referral link to share it with your friends and get rewarded!
Wallet Connect will display your current connections to other wallets.
Security and Privacy is the place where you can find your Private Key along with the Seed Phrase.
Manage Wallet allows you to delete an existing wallet (in case it’s needed) or import outer cosmos wallet by entering a seed phrase.
The Apps Setting section enables you to enable notifications from integrated applications and activate interchain transfers within the Cosmos ecosystem, streamlining the management of your digital assets.
Conclusion
Once you have walked through this guide, staking ATOM via Cypher wallet should be effortless for you. By staking with Everstake, you can continue to earn staking rewards and even stake those rewards for additional profits, ensuring maximum returns on your investment. To learn more about staking ATOM, explore our comprehensive article How to Stake Cosmos ATOM covering all essential aspects. Also, feel free to contact our Cosmos Hub Manager on Twitter.
