Imagine your dog working every day to make money that flows into your bank account. While that sounds like a great idea, it's also a farfetched one.
However, there is a scenario that's at least somewhat similar that is a real opportunity. Just substitute "dog" with "dog-inspired meme coin." Here's the stunning amount of passive income you can make staking Shiba Inu (SHIB -4.36%) tokens.
Image source: Getty Images.
This dog will hunt
We'll get to the monetary amount shortly. Let's first, though, address an important question: What exactly is staking?
The idea behind staking is that you can earn rewards by committing cryptocurrency tokens. Your tokens are then used to support the underlying blockchain as it verifies transactions. The catch is that the given blockchain must use the proof-of-stake consensus mechanism as opposed to the proof-of-work procotol.
At first inspection, you might think that the old expression "this dog won't hunt" might be true for Shiba Inu when it comes to staking. After all, the token is built on the Ethereum (ETH -3.34%) blockchain, which uses the proof-of-work protocol.
However, Ethereum is in the midst of a major upgrade to transition to a proof-of-stake consensus mechanism. Its Beacon chain is already in place, bringing the ability to stake to the Ethereum ecosystem. The plan is for the Beacon chain to be merged with the Ethereum mainnet sometime this year. When that happens, it will enable staking for the entire Ethereum network.
Digging up dollars
The bottom line is that, yes, you can stake Shiba Inu tokens. And you can make quite a bit of money doing so.
I surveyed three cryptocurrency exchanges that support staking Shiba Inu. Below are the current yields for each:
| Exchange | Maximum SHIB Staking Annualized Yield |
|---|
| Binance | 12.09% |
| Crypto.com | 3% |
| ShibaSwap | 5.41% |
Data sources: Binance.com, Crypto.com, ShibaSwap.com. All figures as of May 5, 2022.
Binance offers the highest annualized yield. The figure shown requires you to lock up your Shiba Inu tokens for 120 days. Binance also offers an alternative that only requires a 10-day locking period with an annualized yield of 10.12%.
Crypto.com appears to have the least attractive staking opportunity for Shiba Inu. You can currently receive an annualized yield of 3% in exchange for locking up your tokens for three months.
ShibaSwap's terms are the most complicated of the three exchanges. You must lock up 67% of your staked tokens for six months. However, the crypto exchange allows you to claim weekly rewards on the remaining 33%.
Exactly how much passive income you'll make staking Shiba Inu depends on which exchange you use, which lock-up period you choose, and how many tokens you stake. But it's currently possible to make more than $1,200 in annual passive income for every $10,000 worth of staked tokens. That's a much higher amount than you can find with most other methods of generating passive income.
Barking up the wrong tree?
While you can make an impressive amount of passive income staking Shiba Inu, it's not necessarily the best move. If the meme coin's price falls during the period your tokens are locked up, you won't be able to sell them. It's possible that your loss could far exceed your staking rewards.
Investors seeking to generate passive income by staking cryptocurrencies might want to instead consider stablecoins such as Tether (USDT -0.01%). The maximum annualized yield for staking the popular stablecoin currently available is 12.3%. Tether is much less volatile than Shiba Inu. Its price has barely moved up or down so far in 2022 while Shiba Inu is down more than 40% year to date.
Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ethereum. The Motley Fool has a disclosure policy.
FAQs
Exactly how much passive income you'll make staking Shiba Inu depends on which exchange you use, which lock-up period you choose, and how many tokens you stake. But it's currently possible to make more than $1,200 in annual passive income for every $10,000 worth of staked tokens.
Can Shiba Inu make millionaires? ›
So yes, Shiba Inu once had millionaire-making potential. However, Shiba Inu is much better known these days, which could limit the future upside in the price. Shiba Inu's market cap is currently about $14 billion, down from $39 billion at its peak in 2021.
How do I get passive income on my Shiba Inu? ›
By staking Shiba Inu (SHIB), you can potentially earn rewards for securing the network and contributing to its stability. Whether you choose to stake through a liquidity pool or a staking platform, the process typically involves pledging your SHIB and receiving rewards in return.
Is it worth it to stake SHIB? ›
The Bottom Line. Shiba staking isn't all that lucrative, especially compared to other assets such as Cardano, Ethereum, and Solana, which all offer over 4% in APR compared to the 0.2% you'll get when you stake SHIB tokens.
What is the best SHIB staking rate? ›
Latest Shiba Inu (SHIB) staking rewards
| Platform | Coin | Interest rate |
|---|
| MyCointainer | Shiba Inu (SHIB) | Up to 16.5% APY |
| Bitmart | Shiba Inu (SHIB) | Up to 1% APY |
If SHIB reaches $0.10, you will need 10,000,000 tokens (10 million) to have one million dollars worth. The price of 10 million tokens right now is about $90.7. Turning less than $100 into $1 million will be among the most profitable trades ever.
How many Shiba Inu coins do I need to become a millionaire? ›
Shiba Inu is changing hands at $0.00001026 as of press time. If SHIB claims a $0.0001 price, an investor must hold 10,000,000,000 (10 billion) tokens to sit on a $1 million investment. These 10 billion tokens are worth $102,600 at current prices.
How to earn Shiba Inu coin free? ›
Faucets and Airdrops: One of the traditional methods to earn free Shiba Inu is through cryptocurrency faucets and airdrops. Faucets distribute small amounts of Shiba Inu for completing simple tasks or captcha challenges, while airdrops involve receiving free tokens as part of a promotional campaign.
How do you turn crypto into passive income? ›
Crypto Passive Income: 8 Ways to Earn (2024)
- Cryptocurrency interest rewards.
- Crypto lending.
- Staking.
- Dividend earning tokens.
- Play-to-earn games.
- Crypto affiliate programs.
- Yield farming.
- Cryptocurrency mining.
Passive income opportunities in the crypto market abound with various methods like staking, airdrops, and liquidity provision. Explore different tokens like Dogecoin20, Green Bitcoin, Smog Token, eTukTuk, and Jupiter Perpetuals for potential earnings.
Download Ledger Live
Coupled with a Ledger, it makes the most secured wallet for your Shiba Inu.
Should I keep holding SHIB? ›
Investing in cryptocurrencies, including SHIB, can be highly volatile and speculative. It is important to conduct thorough research, consider your risk tolerance, and consult with a financial advisor before making any investment decisions.
What is the best crypto to stake? ›
Per our experts, the best crypto coins to stake include Bitcoin Minetrix (BTCMTX) and TG. Casino (TGC), which may offer remarkable returns. Stablecoins like Tether (USDT) and Ethereum (ETH) can also provide relative security in volatile markets.
Which coin has highest staking rewards? ›
Polkadot (DOT)
(However, if you want to create a validator node with Polkadot, your contribution will have to be substantially larger at 350 DOT.) Polkadot is among the best staking coins because it comes with an average annual return of 14%, which is great for earning passive income.
What is the best SHIB investment ever? ›
One such early investor purchased $8000 worth of SHIB in late 2020. When SHIB reached its all-time high on Oct. 21, 2021, the investment ballooned to a whopping $5 billion. Many called this the greatest trade of all time.
Where is the best place to stake a Shiba Inu? ›
Staking is the process of holding your coins for a period of time and earning interest for the same. For staking your coins on Binance you must have Shiba Inu coins in your wallet. You can stake Shiba Inu on both Binance and on ShibSwap.
What is the highest money made from Shiba? ›
Shiba Inu became nothing less than a money-printing machine between 2020 to October 2021. Those who invested in 2020 made millions of dollars when SHIB reached its all-time high of $0.00008616 in October 2021.
Will Shiba Inu coin reach $1? ›
About 353 million Shiba Inu tokens have been burned during the past month. That translates to 4.2 billion tokens over the course of one year. At that pace, it would take 140,300 years to burn enough tokens to warrant a price of $1 -- so 2024 is probably off the table. Here's the kicker.
Will SHIB ever make money? ›
On the surface, SHIB does not have much value outside of facilitating payments. However, a strong community has propelled the token to new heights over the past several years. If you are willing to stomach the risks associated with such a project, SHIB could potentially be a profitable investment.
Is Shiba Inu a good investment? ›
Is Shiba Inu a good investment for the long term? Shiba Inu is an extraordinarily speculative asset under the best circ*mstances, offering a certain amount of “high risk/high reward” appeal. Whether or not it is used in the long term as a currency remains to be seen, but the early signs point to it not being so.
