 Welcome to Jalassa News or Dan for short. My name is Rob and today I want to talk to you about staking of cosmos or atom. Before we go over that, there's a couple of things we have to talk about which are the rules of staking and the rules are quite simple and they're to protect you as you stake your crypto and to make sure you don't run into mistakes. So the first thing I always talk about is doing a test transaction first. I don't care if you're paying somebody or receiving something or if you're staking, I want you to send a test transaction so you don't lose all your crypto because maybe you entered in something wrong or you used the wrong chain. This is the best way to do things that I have found because you don't want to lose $1,000 like I have in the past. Also, as far as like staking rules, know the lockup and the unstaking time frame. There's nothing worse than when you are locking up or staking your crypto and you find out, oh wow, this is going to take me three months or 21 days to unlock it or for a staking period as a year. Or in the case of Ethereum, if you stake right now, maybe the Shanghai protocol update will at some point roll in and I can unstake my Ethereum but until then, who knows? Next to last is take profits. We've talked about this plenty on the channel so I shouldn't say too much. It would behoove you at some point to take profits along the way. This is not a financial advice. I'm not a financial advisor. However, nobody, everyone broke taking profits. So as time goes on and you're in a brutal bear market like we are in right now in 2022, it might be a decent opportunity to take profits on what you are staking and receiving those rewards. And lastly, there's three reasons for self-staking because let's be honest. You can go to an exchange and you can stake your crypto. Super simple. Don't have to do anything. Well, there's three reasons for that. Why we talk about self-staking. Mt. Gox, Celsius and Voyager. And it's because of those reasons it's it would behoove you to put the control of staking and your private keys into your hands. Mt. Gox is a huge hack and everybody lost their Bitcoin. They're going through the process right now. That was in 2014. It's now 2022 and there still has been a distribution of what has been recovered. Also, a Celsius and Voyager. If you've left crypto on there like I have, then you know how important it is to custody your own keys because guess what? Who knows when we're going to get those back? Who knows if we're going to get those back? So as far as self-staking, you can go the other route. I'm just saying good luck. So that would take care of the rules themselves. And then next piece I just want to go over real quick is Adam or Cosmos. If you don't know, their blocks are generated every six to seven seconds. It's very fast at 10,000 transactions per second. And if you want to know more about Cosmos, this is not the video for that. This is just about staking. But if you want to know more about Adam or Cosmos, check out Guy's video on Adam. Still worth it. What you need to know, the link is in the description. Fantastic video. Nobody does it better. Okay, so that takes care of that piece. Let's get to it. Staking. So I am in the vein of thought, which is I always like to use ledger because if I'm staking, I want to have my keys up there in my control. I don't want to leave it to somebody else. And that's why I use a ledger. That's what we're going to do today. So there's a couple reasons. Obviously, maximize your assets. Don't let your assets gather dust, put them to work, and make them grow with ledger. This only makes sense, right? I mean, if you own crypto and digital assets, why not just stake them and you hold your own keys? Very simple. Second piece is secure network. When you stake Adam, you made the Cosmos blockchain successful by secure network. And this goes on for every instance of where you would stake. It is debatable if you're doing that in a actual crypto exchange. Also, secure ownership, you keep full custody of your assets with the ledger and competitive rewards. Earn rewards of up to 20% when choosing a ledger validator. All right, great. So now let's get to the fun stuff. Earn some rewards. Let's estimate your rewards. There's a great website. It's called stakingrewards.com. And you can go there and you can see all the top 10 of the different cryptos that you can stake with. Cosmos is far and away. The highest APY are yield. And that is over in the top 10. And we can see right now, it's about, let me delegate Cosmos, we're on 17, 18%. If you run a node, which you're not, it's like 19%. So that's pretty good. But this is pretty cool. I like this part. So if I put in, oh, let's say $1,000. And you can switch this between $1,000 or Adam. Right now, we're in October 16, 2022. Adam is, gosh, I don't know what it is, $11, something like that for one. And it's, you can switch back and forth between each one. But let's just keep it simple. You have $1,000. And the term is one year. You delegate Cosmos. This is how much you earn every month, if the cost of Adam remains the same. You earn about $15 a month for doing essentially nothing. Let's be honest. And then per year, that's $176. $1415 per month. That's like a, that's like a value meal at McDonald's or something like that. I mean, even for two, who knows. So like for these types of things, not too bad. And then also, I love StakingWords.com. Links in the description. It's a free website. It tells you, hey, for the optimal restaking frequency for $1,000 stake and a transaction fee of .007 Adam or nine cents is 33 days. Restaking every 33 days will increase your analyzer rewards from 17.7 to 19.11%. This translates into an extra 1.17 Adam over a year. So pretty good. But there's a way to get around that. I'm going to show you that in a second. So with Staking, for this site, there's actually five steps, buy a ledger wallet, download your live, set up your device. If you want to know about that, I've got a great website. It's called Dan teaches crypto. It's 100% free as a link in the description. You're going to go there and click on start learning. You're going to sign up. It only takes an email. I don't charge anything ever. And then underneath there, when you go to module two safety, click on that. And then as you scroll down, I'll tell you what's a public and private key, how to set up your nano ledger, setting up your ledger live app, transferring crypto assets from exchange to wallet, wallet to exchange and bleeding. So I know everything you want to know about an analyzer is right there. So I make it as simple as I possibly can. We're going to focus on these two things, buying crypto or transferring funds, excuse me, just transferring funds. And then we're going to stake. That's all we got to do. So we will do that in a second. A couple of FAQs. How do you receive your rewards? Well, there's two different options for claiming your rewards. And Adam, this is what we talked about, or was going to allude to before you can restake every 33 days, or there's two options, compounding and cashing in with compounding, you'll immediately add your newly received Adam rewards to your existing delegation with cashing in goes to the Adam generated by our delegation, but they won't be delegated. So basically it goes like this. If you want to compound it, all the rewards that come in, they just get compounded over and over and over again. So you don't have to do the 33 day manualization. If you want to cash in, then you have to manually redelegate those. However, I will say this, there is pros and cons of that. And that would go back to our rules, which is know the unstaked and staked time period. How long am I Adam locked up? Well, it takes 21 days to unlock the Adam mistake. If you don't want to deal with that, then just do the other part where there's compounding cash in, you just choose cashing in. But if you're like, I don't really care, 21 days, let it ride, then just do compounding. Do I still have control of my crypto? When I delegate them to a validator, you have full ownership of Adam when you stake through ledger, unlike with crypto exchange. So now let's just go, first of all, how's Cosmos doing today? Yeah, about 11 bucks a day, pretty nice. And it's done some pretty decent things over time. I think it's going to go up. The low is 275. I think the highs were about $34 all the way back in October, about a year ago, 2021. But there's one thing I'll need you to understand, which is this, total supply and max supply, infinity. Now with Bitcoin, we've got 21 million. And with this one, there's a max supply of infinity means it can keep going forever. Well, that doesn't sound good. What does that mean? Well, it means this, Adams, targeted annual inflation rate is recalculated every block. Let me delete these so you can see them better. The inflation is subject to a rate change, positive or negative depending on the distance from the desired staking participation ratio, what's currently fixed at six inverse of that cent. The annual inflation is capped between 7% and 20%, meaning every year, the circulating supply, the total supply goes up between 7% and 20%. However, if more than two thirds of the atoms are being staked, 67%, then the atom block rewards decrease gradually down to a floor of 7%. If less than less than that of the atoms are being staked, the atom block rewards increase gradually up to a ceiling of 20%. So if you've got less than 67% of people staking means that the annualized inflation goes up. If we had 67% or higher, then it goes down. And then of course, the big question is, where do rewards come from? There's two places you get from transaction fees, people buying and selling or moving things around on the atom or cosmos blockchain. And also like we talked about the newly created atom, the total supply of atom is inflated to reward stakers. And then lastly, before we get into it, staking safely, staking atom is not risk free. I think we should all understand that. If a validator has downtime, earner performs a percentage of atom, delegated to them, may be forfeited to mitigate these risks. It's recommended that atom holders delegate to multiple validators, pretty much the same thing that we've seen in other cryptos, more specifically polka dot. And then lastly, lastly, how should atom holders select validators, which is us? Who should we delegate to? So of course, we want to take a look at the commission rate. That would be interesting. Max charge rate, right? But this one's important. The minimum self-bond amount. The minimum amount of atom the validator candidate must have bonded at all times. If the validator's self-bonded stake falls below this limit, their entire staking pool unbonds. When a validator misbehaves, part of their total stake gets slashed. This stake includes the validator's self-delegated stake and their delegated stake. So how do we avoid that? Well, I'm glad you asked that because now it's time to get into the actual staking. So what we're going to do is we're going to jump into ledger live right now. And we're going to download the app and start staking. So let's do that. Okay, great. First step. So we are in the ledger live, my Ledge Nano X. We've got a couple of these couple of S's. And the first thing I'm going to do is I'm going to do, I need to download the app itself. So the first thing we're going to do is going to go in the very left-hand column where it says, my ledger. And I'm going to take a search in the catalog and I'm going to look for cosmos. And it says, oh, look at that, it's already installed. So what you're going to do there is going to click on that and install it and off it goes. So once you're there, we need to add an account. I can add an account here or I can go over to accounts and then add account. I'm just going to do it simply just right here. Very simple. Open the cosmos app in your device, which is the device I have right here, my legend Nano X. And let's see. Open app cosmos. And here we go. Great. I got cosmos one, which I already created in cosmos two. Let's do this. Cosmos, YouTube, add account. And let's see. Done. Great. So now we can see over here, I've got cosmos YouTube, cosmos one. I've got all my, the amounts hidden because I don't like to give everything away. So what we're going to do is we're going to click on cosmos YouTube. Great. It's going to say, no crypto assets, buy or receive. This is the part where we're going to receive them from an exchange. And let's just jump in. So I'm going to click on receive. Cosm YouTube. Yeah, continue. Device. And I say, please, and now on my nano, it's going to say, is this the address you want to create, which is cosmos one, nine, SY, blah, blah, blah. And then last one, OP. Okay. So I can remember that. I'm going to approve that on here. But before that, I'm going to copy that address. I'm going to need a second. So I'm going to click on approve here. Great. Done. Now what I'm going to do is let's jump into my phone. And I'm going to show you how I'm going to transfer over cosmos. Great. So here I am in my Coinbase account. I've got a whopping $99.86 worth of cosmos. That's not too bad. So what I'm going to do here, and every, every exchange is the same thing. There's going to be a button somewhere, either a QR code, or you can send it. And you're like on the upper right hand corner, you see right there, it's like a little arrow. I'm going to click on send. And again, I always want to do a test transaction to make sure I don't screw this up and send it to someplace where it just disappears. So I'm going to send a test transaction of, let's just say, we'll say $5 worth of Adam. I'm going to click on continue. And then the address. Well, good news. I have that already copied what we did before. Again, that was in Ledger Live. I'm going to click paste from clipboard and add to write the one. And let's see, add a memo. So let's see here. What's an add a memo? The memo is an optional field. Optional, used by crypto business and other platforms. And if I, who should receive Adam, do not send out and then receive without checking it. So a couple of things on certain cryptos, there's a way, there's a specific memo that you have to put in and it won't go, if it wants you to do it, but it looks like this one is just optional. So let me just put ledger. How about that? That'd probably be better. Then preview send. Here, $5 ledger live network fee, $5.03. I think I'll fight the bull on that one and send now. And with this one, I have my Google two factor indicator on. I recommend that for everybody. So I'm going to do that right now. Great. Successfully sent. Well, let's make sure that's true. Let's jump into ledger and see that actually happened. And voila, there we are. Man, that was fast. That was super fast, a matter of fact. So now I have $5 of Adam that didn't, that took less than a second to bring on over. Okay. So on top of that test transaction, I also brought another $95 worth. So again, always do a test transaction just to make sure now I have more Adam or Cosmos that I can stake. So let's get to it and actually start staking Cosmos. So right here is going to say stake with ledger and little purple button, click on that. And it's going to ask me, who do you want to stake with? And again, we can use multiple ones. And we've got ledger at 7.5% commission. I'm going to click on show all. And remember, it's about commission. And it's also sorted by how many stakers that they have. Now, like they talked about, once it falls past a, or decreases to a certain threshold, you won't earn any reward. So I'm going to try to look at the ones that are lower commission and maybe not so essentialized. So maybe not Coinbase at 20%. That's crazy. Or buying a stake at 2.5%. Maybe I'll do steak fish. That sounds pretty good. And what about this? Dokea capital? Well, actually, you have to do a one by one. So I'm going to do steak fish first. And then we can come back and add all the ones that we want to. Let's do steak fish. 4%, 11 million sounds good. Continue. Just put in four Adam on this one, which is around 46 bucks. That's what I really meant to do. Click continue. And it's going to ask you to look into your device, which I got right here, and type delegate amount for Adam, the validator, Cosmos, NJ0, NJ0, that's correct. And the fee is 0.06. Very cheap. And on a proof broadcasting transaction, one thing I like about Cosmos, and very fast, just like that, done. And voila. So I've got a little bit of never stake. I did before steak.fish. So you got four Adam. Let's do it again. Stake with ledger. So I'm going to click here, show all. Let's go to SG1, 1.9%. Continue. And let's just put another three Adam on this one. 35 bucks. Continue. Ledger live. And again, I'm going to take a look at my device itself, delegate amount three Adam, Cosmos, J90C, J90C. That's right. Memo fee 0.06. Approve and broadcast the transaction. And that's it. So now when that pops up, we will have three different validators. Again, you can choose whichever one you want to do, whichever one that you feel has the most validators and off you go. Okay, one less thing on the staking part. So there was one part where we talked about compounding your rewards or just cashing out. And what's great about Cosmos is that I can claim my reward already because blocks are produced every six or seven seconds. So you continuously get rewards, which is pretty great. So I'm going to click on claim rewards right here. And it's going to ask me very simply, it's going to say, look, do you want to compound this? Or do you want to cash in right now? And it states, of course, states the rewards are small and the estimated fees to claim them. And that is because we just started. But again, you can choose which one you want to do, cash in, which means I'm not going to compound, I want to cash them in, I want to take those and I can actually take those out. Or if I click on compound, which I earned a whopping 0.000026 Adam, they will be claimed now and automatically delegated to the same validator. Remember, if that happens, there is a period of when you on stake for 21 days. So if you can compound, that's fine. That's great. But every single time you get rewards, remember, that's 21 days that they have to stick there. So it depends on what you want to do. Later on, I will click on compound because it says that rewards are smaller than the estimated fees. So why would I do it? That's just something for you to remember to do at a later point. And also to to on stake or on delegate, we're here on the delegations, we've got three SU-1EverStakeStakeDeFish. If we want to undeligate, we just click on manage and undeligate or claim rewards. And when we undeligate, let's see what happens here, it's going to ask us, do you want to do 100% of the three Adam or 50% of what we want to do? And remember, it takes 21 days to finalize. So that is how to claim rewards and then also to undeligate so you can take those out. And again, very fast with Cosmos and Adam, but that is it for the video. So look, I hope that made sense. We go over it. I think as time moves on, I know we're in the bear market right now, but just letting your crypto sit there, I think for me, isn't what I want to do. I want to actually put my crypto to work. And that's how I do it. So let me just think about that in the comments section, but that is it for today. So thanks so much for stopping by. I do appreciate it. And I'll see you on the next one.